A key concept of Multi-Level Marketing is that the company you are with is not the actual one selling the product. Instead, they are a network of independent distributors who recruit other people and earn income from those sales. In a pyramid structure, every distributor pays a part of their earnings to their upline, who spends a portion of their income on the company. Hence, the business model is where each person in the chain earns a part of what they make from their partners’ sales. Go Now to learn more.
The first thing to keep in mind when joining a multi-level marketing program is that not all of them are legitimate. While multi-level marketing is a legitimate business model, some scams are out there. Many companies claim to make money from selling their products to actual customers. In theory, it may sound good, but many people aren’t aware of the scams. One YouTube commentator has slammed the industry in a YouTube thread. But, Jessica Hickson says that she earned between $5,000 and $7,000 a month and had upwards of 800-1,200 distributors working downline from her.
Although home-party sales have been around for years, the advent of social media sites has greatly expanded the reach of these businesses. For example, a 28-level pyramid would include nearly the entire United States population! As a result, you should ask your multi-level marketing company if their market has reached saturation level. In reality, most legitimate multi-level marketing companies do not have too many distributors in any one region. This means that they are likely a scam.
However, consumers often have a difficult time separating legitimate multi-level marketing businesses from scams. While there are many scams out there, 99% of people join multi-level marketing programs and end up losing money. This isn’t entirely true, however, because the FTC has ruled that the business models are legitimate. Multi-level marketing involves a network of independent representatives who sell consumer products. The compensation for every member of the chain must be based on the amount of product sold to the ultimate consumer.
It is vital to read and understand the company’s refund policy before signing up for an MLM program. The refund policy should outline any limitations or penalties for returning unused products. Also, you should find out how long they allow you to return the products you’ve purchased. This should help you avoid being ripped off by a MLM company. And, if you’re not sure about the company, you can always ask for a full or partial refund.
The success of multi-level marketing programs depends on recruitment. While a large portion of the income of these organizations comes from the sales made by the distributors’ recruits, the company is still highly dependent on recruitment of new participants. Despite this, anti-MLM campaigns have managed to gain a foothold on the social media landscape. One group has even used the economic collapse as a recruitment tool for women on social networks. They used the lack of pushback as an excuse to recruit new people and increase sales.