Network Marketing or MLM is a legitimate and proven method of distribution and compensation that has been utilized worldwide for over 50 years. The Direct Selling Association (DSA), based in Washington, DC, represents the MLM / Network Marketing industry; The DSA has existed for more than 100 years.
Over 1,000 MLM / Network Marketing firms distribute more than $100 billion dollars a year in goods and services. An estimated 10 to 12 million Americans alone and millions more Internationally are either part-time or full-time independent representatives for Network Marketing/MLM Companies and untold Millions upon Millions more are customers.
Multi Level Marketing forms of distribution expeditiously create a large Independent Representative Organization (IRO) of retail outlets. This model of distribution has been highly successful for many of the world’s largest corporations. Companies such as MCI, US Sprint, Coca Cola, and Colgate are among many corporations who have launched pilot MLM programs. “There’s no better way today to get your product right in the consumer’s face” (William Plikaitis, group manager for US Sprint’s Consumer Services Group).
The difference between an illegal Pyramid and a legitimate MLM:
Multi Level Marketing / Network Marketing compensation plans are a way to sell real goods or services through Affiliates or Distributors. These plans usually show that if you sign up to be an Affiliate, you will receive commissions - not only on your retail sales of the company’s goods or services, but also on the retail sales of the people you invite to join the IRO. One of the keys to MLM success is that there are actually valuable products and services moving through the network, rather than just the building of the network or "building mailing lists" or "sending recipes" or "sending jokes," etc., such as chain letters usually have you do.
MLM / Network Marketing DOES work, and it works well. Those who train, refer and motivate the most people earn the most money. If you sell or consume $50 worth of product a month, and you have referred 50 people who do the same, you will earn 50 times more than the person who only sells or consumes $50 of product a month. Why should you do all the work of building a strong retail sales organization only to receive the same income as someone else who did nothing!?
With MLM / Network Marketing, you are building an income from the production of everyone in your WHOLE organization, whether you sponsor them or not. If each person in your own personal organization duplicates what you do, you have a situation where everyone has the same amount to gain. It's the fairest structure because everyone has the same opportunity to achieve the same goal. They can even surpass you! But, their efforts benefit you too. So it's a win-win situation.
MLM / Network Marketing is the fairest system by far because the success or non-success you attain correlates directly to the contribution and effort you've applied, personally. It's not based upon your position within the organization.
A Pyramid is a common geometric structure where those at the top in leadership roles make more money than those below. This describes every "conventional" company in existence! The problem here is that the CEO or business owner is the recipient of the efforts and hard work of each person below and these people do not have the opportunity to earn as much as, or more than the CEO. Does a Vice President earn more than the CEO? or the factory worker earn more than the Owner or President of the company? No, not usually.
No matter what effort the factory worker exerts, they still maintain the same level of income and status. They will never have a higher income than those in upper management. A “Top Down” or “Hierarchal” Management structure is commonly used to provide effective oversight and supervision of large groups, typically when represented graphically they take the shape of a Pyramid, that does not mean that it is inherently bad, in fact you may be surprised to see you how often this structure is used.
