by Rahimah Sultan

Multi-level marketing has gotten a bad reputation, partially due to a lot of confusion about legitimacy. Although structured almost exactly like a pyramid scheme, it is legal.

A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service.

Check what the Better Business Bureau has to say about the company and the guide if it’s nutritionals.

This business is not for everyone. Is your up-line helpful and caring? Are you team spirited?

Another part of the multi-level marketing reputation is due to a marketer’s approach.

When promoting your product or service, don’t be pushy. Just be there when someone is ready to try your offer. If you’ve researched the company and are pleased, educate people on the benefits of using the products or services. You can do this in several ways; physical meetings, online webinars, videos, etc., showing how you are benefiting from using the products or services.



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by Rahimah Sultan

Multi-level marketing companies are legal although structured almost exactly like a pyramid scheme. A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service.

Some major indicators of a pyramid scheme in multi-level marketing are:

1) Focus on recruitment of new people rather than product sales
2) Claims of making money through growing a downline rather than your own product sales
3) Asking distributors to purchase expensive inventory
4) Asking you to sign a contract or pay money before you have time to read all of the paperwork
5) Products that may serve as a cover for recruitment

The ongoing debate is whether these companies and programs are legitimate business opportunities.

More…

For an in-depth review of multilevel marketing, read

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