| I will preface the following by stating that I am | | | | many non-believers. |
| not an MLM'er but many of my colleagues are, | | | | Some criticism and stigma has come from the |
| and in the current climate of financial uncertainty it | | | | perception that many of the bigger organizations |
| is an option many are looking at. | | | | inculcate members by indoctrination. Mass direct |
| I have tried to give a simple unbiased opinion of | | | | marketing to friends relatives and anyone with a |
| the pro's and cons of the industry so that you | | | | pulse, many of whom have no interest in joining |
| can draw your own conclusions. | | | | often alienates and causes relationship fractures |
| Is MLM legitimate? | | | | and residual bitterness. |
| The recent global recession has not coincidentally | | | | In recent years there has been a quite a shift in |
| corresponded to resurgence in some previously | | | | credibility and professionalism. Well-respected |
| uncool forms of marketing, such as Multi-Level | | | | authors and entrepreneurs have started to |
| Marketing, Party Plan and Home Based Internet | | | | endorse MLM. Robert Kiyosaki and Donald Trump |
| Marketing. Companies such as Amway, | | | | are two that come to mind. Internet marketing |
| Tupperware, Mary Kay Cosmetics and such like | | | | allows members to strategically attract |
| are having significant successes in their recent | | | | like-minded people into their network. Training is |
| recruitment drives. | | | | more streamlined and success is less dependent |
| Multi-Level Marketing has a stigma attached to it | | | | on the cult of charisma, and perhaps more |
| for decades, with polarizing attitudes that have | | | | equitable |
| contributed to family tensions and damaged | | | | Financial Legitimacy. |
| friendships. Some people would be more | | | | The compensation plans vary from company to |
| supportive if you announced that you had joined a | | | | company, and are a tool for soliciting new recruits. |
| new age cult. The legitimacy or otherwise of | | | | The power of compounding numbers can suggest |
| these direct selling organizations is an issue of | | | | that massive incomes can be earned simply from |
| both legal and moral standing. | | | | sponsoring a few people who do the same ad |
| What exactly is Multi-Level Marketing? (MLM) | | | | infinitum. Pick a number and double it ten times |
| It is a marketing strategy to sell goods or | | | | over and then imagine that number represented |
| services through a network of independent | | | | your network of distributors, who all sell and |
| distributors. | | | | consume the companies' lotions and potions. The |
| Income is derived from the sales derived from | | | | lure of over-ride commissions for very little work |
| the network of personally recruited members, | | | | can attract many naive members, who |
| usually as a result of personal sales and over-rides | | | | subsequently depart disillusioned, weeks, months |
| on the teams' volume. | | | | or years later. |
| Legal Legitimacy. | | | | Conclusion. |
| Countries have individual laws that define the | | | | As a vehicle to create passive income there are |
| legality of sales and marketing techniques. There | | | | many benefits to investing the time, energy and |
| is a Grey area that many companies need to | | | | money to create a solid passive income. Like |
| navigate which is regarding the issue of definition. | | | | most things in life however, there is rarely a free |
| The biggest compliance issue is that concerning | | | | lunch, and those that succeed will be those that |
| pyramid selling, which is usually considered illegal. | | | | combine ambition with a verifiable action plan and |
| Most contemporary MLM companies are able to | | | | under the umbrella of a stable and trustworthy |
| comply and adhere to local legislation, but often | | | | organization. |
| walk a fine line, as interpretations can vary. | | | | There are very few success stories in any form |
| Moral Legitimacy. | | | | of business that succeed in the absence of a |
| Prior to the Internet, recruitment was conducted | | | | coherent mentoring program and this scribbler |
| with an almost evangelical zeal, with many | | | | suggests that it is imperative you choose your |
| organizations using huge motivational rallies and | | | | mentors carefully. |
| sales techniques that were frowned upon by | | | | |