Multi-level marketing is called many things: network marketing (most common), direct sales, affiliate marketing, referral marketing, dual-level marketing, consumer-direct marketing, home-based business franchising, home-based business opportunity, and inline marketing.
But, using one of these terms to define a business DOES NOT automatically make it an MLM.
Multi-level marketing companies basically promise a chance to leave your 9-5 job, be your own boss, make lots of money and to make new friends in the process. The ongoing debate is whether these companies and programs are legitimate business opportunities.
According to Wikipedia Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use direct selling as a synonym for MLM, although MLM is only one type of direct selling.
So, due diligence is required before joining any of these programs.
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MLM: Is It Legitimate?
by Rahimah Sultan
Multi-level marketing is called many things: network marketing (most common), direct sales, affiliate marketing, referral marketing, dual-level marketing, consumer-direct marketing, home-based business franchising, home-based business opportunity, and inline marketing.
But, using one of these terms to define a business DOES NOT automatically make it an MLM.
Multi-level marketing companies basically promise a chance to leave your 9-5 job, be your own boss, make lots of money and to make new friends in the process. The ongoing debate is whether these companies and programs are legitimate business opportunities.
According to Wikipedia Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing. Some people use direct selling as a synonym for MLM, although MLM is only one type of direct selling.
So, due diligence is required before joining any of these programs.
Here is a great article on MLM.
This post includes an updated 2020 list of the top MLM companies in the US and international ones.
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Advertising Disclosure: Marketing Success Review may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.