Network marketing can be lucrative, but only a small percentage of people make serious money. Often referred to as multilevel marketing (MLM) or direct marketing, the idea of making money without any special skills or major investment with immediacy is appealing. And the promise of residual income fuels the desire to never wind up in your current financial position again if you've found yourself in a somewhat tough spot.
The friend continues, “It gets better! If those 3 recruits each recruit 3 people themselves, you’ll earn 5% commission on the product they buy from the company as well. You’ll be a ‘Gold Star’ level distributor at this point and you’ll be able to buy product from the company at a 30% discount. To maintain this status, your group of 12 recruits beneath you need to collectively buy $1,200 worth of product each month from the company.”
MLM restructures the traditional business model — manufacturer to retail shop to customer — such that sales agents working for the manufacturer sell directly to customers, bypassing the retail shop altogether. MLM companies can then convert customers into advocates for their products and possibly even sales agents. Because there is no retail store for the products they sell, MLM agents typically work from their homes, interacting with customers in the community or, more often, over the internet.
Your comment and it’s militant nature are the EXACT OPPOSITE of what I believe the doTERRA culture is founded upon. I hope anyone reading this thread choose to look past your article and it’s attack on YoungLiving when basing their decision as to which company they choose to go with. I want them to know that the manner in which you needlessly attacked them is in no way a representation of all the other reps nor the company itself.
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A: To help you understand what network marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.
What this all adds up to, in the eyes of opponents and supporters, is a benign era for MLMs. Regulating these companies, with their legions of independent salespeople, is difficult for the toughest regulatory regimes. And the Trump era will be anything but that. “Anybody who would continue to expect or hope for law enforcement regarding financial schemes of this type would be living in a dream world,” said Robert FitzPatrick, the president of the watchdog Pyramid Scheme Alert. “[MLMs] are going to gain protection.”
Question your recruiter. When you've found a company you're interested in, you'll likely meet with a recruiter or another representative. Be skeptical during the recruitment process. Remember that your sponsor makes more money if you sign on, so he may not be as open with you as he could be. Don't get distracted by promises of how much money you'll make and really think about what you're about to do.