The Truth About Multi Level Marketing Programs

Multi-level marketing is a fancy name currently being used bynsome companies in an effort to do two things.nnThe first objective is to move products from their warehouses,nand thus increase their sales volume. The second objective is tonrecruit "an army" of commission-only sales people. Make nonmistake about it! After you've stripped all the hoopla andnfalderal away from these "super money-making opportunities", thenbottom line remains the same - you make money from commissionsnallowed from the sale of products.nnGenerally speaking, very few people have any "real" salesnexperience, and thus, if offered the opportunity to take a job asna commission-only sales person, they'd run from it like thendevil.nnAt the same time, most commission-only sales positions aren"direct selling" opportunities. And, the definition of directnselling begins with an explanation of what a door-to-door salesnperson does.nnDon't get me wrong... A lot of personal fortunes have beennamassed by commission-only sales people... For sure, when younattempt to sell by mail, you're almost always involved inncommission selling, and direct selling.nnWhat I'm saying is that most people are "duped" into joiningnmulti-level marketing programs without understanding that it isncommission sales and at least a form of door-to-door selling.nnWorse than "duping you into joining their programs..." Almost allnmulti-level marketing companies subtly encourage you to break thenlaw, and run the risk of huge monetary fines, long terms innprison, or both!nnThis is done by at least, "inferring" that if you will find annumber of people to duplicate what you're doing, and in turnnencourage each new enrollee to keep the system going, everybodynwill get rich!nnNot so, my friend! That's a "Ponzi Scheme", and if you don'tnreally understand what a Ponzi Scheme is - allow me a moment tonexplain: Such a scheme is any kind of money-making opportunitynwhere you get paid by recruiting, enlisting or soliciting othernpeople to follow your lead and continue a chain of events. Innother words, you'll be paid a commission from the people younrecruit -1; form the people they recruit -2; from the people theynrecruit-3; and on into infinity.nnThis is the "secret" impact that most multi-level marketingncompanies use to induce you to buy into their program. Suchnpractices are illegal, and subject to federal laws which couldndestroy you. So called, bi-level marketing plans are the samenthing, as are chain letters, and people-helping people clubs.nThey're all based upon the Ponzi Scheme. If you have any doubts,ntake your money-making opportunity and sit down with your localnpostmaster and discuss it's legality.nnThese things are illegal because if - as in a dream world - theynreally worked, by the time one person had attained level numbernfive, he would have "signed" everybody on the face of the earthnwith only the first two levels receiving any of the money. Therenwould be no body left for the third, fourth and fifth levels tonsell to...nnMulti-level marketing companies get around the law by statingnwithin their by-laws that it is strictly forbidden to promote ornattempt to sell the program by mail. Then, when the postalninspectors come calling on the little guy, the MLM company says:nHe did it - we don't do such things - here, look at our by-laws.nThe bottom line is as old as the hills: you can do anything younwant - legal or illegal - so long as you don't get caught - butnwhen you do get caught, you'd better be prepared to pay thenprice.nnBesides the terrible mess multi-level marketing has gotten a lotnof normally law-abiding & moral people into, it has "foisted"nupon these people personality changes that many of them do notnlike. To usiness moxie" to make any money at it.nnThere's nothing wrong with commission selling - and if you'rengood at it, you're good at it, you can make a lot of money ifnthis kind of selling - but remember that multi-level marketing isncommission selling - the way "distributors" are recruited is verynillegal, with the authorities closing down more MLM companiesnevery day - and it takes a special kind of personality to succeednat it.nnn