Often different definitions are used for MLM. As a result, the wrong definitions are also used, such as Direct Marketing: DM is the advertising of products or services by approaching (potential) customers directly and personally. Because of this direct contact it is also called dialogue marketing. After all, the company enters into a direct conversation with the customers.
There is also the term Affiliated Marketing: a form of Internet marketing in which advertisers reward their affiliates (partners) for the sales or leads that the affiliate has delivered. The advertisers provide banners, text links or articles that they want to have written about. The affiliates then ensure that customers are referred to the advertisers by placing the advertisements or mail on their website. If this results in a sale or lead, the affiliate receives a fee from the advertiser. However, you can also pay per click or per pageview.
MLM or Multi-level Marketing is a business model where a pyramid of independent sellers obtains revenue through direct sales of products and by recruiting new sellers. MLM makes use of personal relationships between vendor and customer. They could also have used the term Network Marketing for that purpose.
Young Living does not spend large amounts of money on advertisements on TV, radio, Internet or printed press, but has a large network of distributors who are paid a commission for word-of-mouth advertising in their own network; this is also known as Network Marketing.
MLM is often criticized, among other things, by comparison with a pyramid game. MLM is, if all conditions are met, legal. For a large part of Asia, MLM or Network Marketing is a very normal way of earning income.
A pyramid game, however, is a 'game' in which participants make an investment and also try to persuade others to participate, after which the investment of the newcomers is paid out as prize money to existing participants. Payouts depend on the number of newcomers (recruited by the participant). Receiving this prize money is based on no other activity than recruiting new participants. Pyramid schemes are illegal in almost all countries. (Source: WikiPedia)
If you're looking for that, you've come to the wrong place; that's not allowed by the law!
Have you ever taken a good look at regular companies? What form does the company take?
A PYRAMIDE! With a few people, the top, management or Supervisory Board or Commissioners, earns a lot more than the large majority of employees who try to sell the company or the products/services of that company on the "shop floor" on a daily basis. In addition, the chance of promotion, because the number of positions is decreasing sharply upwards, is very small or non-existent. Because of this, the person who has the position you would like to have, will not really tell you or help you how you could get this position, because then you would be able to take his/her position and gain more money, prestige and power.
© Oiled By Nature 2016
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