Multi Level Marketing

08Feb09

Beware is all that I can say when you hear someone mention multi level marketing or as it used to be known – pyramid marketing. If a friend or acquaintance of yours invites you over to hear about their new business venture, just make sure you are alert and don’t get roped into something that you cannot carry through or afford.

I don’t mean to be so negative about multilevel marketing as I have heard and seen for myself many success stories but it is not something you should jump into naively. Multi level marketing at the end of the day is about believing in your product and knowing how to sell whether it is a service or a physical product. The way it works is through a hierarchy. At the top someone sells you an idea and you like it, whether you have to buy into the product or just sell on to get your commission or earnings depends on the type of product that is on offer.

Usually there is some kind of investment in the product and then you are promised a percentage return on the money you have invested but you have to work for it. You will need to hold parlor meetings invite friends and acquaintances to sample and get to know your product. But for every person that is convinced and invests or joins the program you get a percentage of the earnings that are derived from their membership. Basically instead of going to a retail store, it is through connections that the products are sold.

For some this works wonders but for others, especially if they join the program at a very late stage the potential for enormous earnings is very small. I am very wary of these gimmicks but I have seen try success stories so all that I am saying is check into it very carefully before you commit to taking it on.

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Tags: pyramid marketing