First it would be best to describe what MLM is. According to Wikipedia Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. MLM is also called network marketing or referral marketing. So when is an MLM not an MLM?
Follow the chat back and forth in a chat room discussing this very issue.
KM: Yes MG…I am familiar with Ta ke Shape for Life…what would you like to know? $200 to be a health coach, then another $200 to become the next level up coach….NO PRODUCTS…just their useless “certification”. They swear up & down they are not an MLM
KJ: the money from bonuses, etc comes “from different pools of money”…well folks….all those “different pools of money” come from the same ocean called PRODUCT SALES!
MG: Thanks K this is good….currently trying to ascertain how many folks my friends need to Make 10K
MG: so they do not make money on products?
KM: yes the health coaches do make money on products…that’s what’s so silly about this one gal’s claims they are not an mlm…
KM: their focus is for people to get on the plan, lose weight, then on about month 7 the company starts sending info on becoming a health coach…”cuz now everyone is noticing how you lost weight”…
KM: you pay to get into the biz and do not get any products
KM: you make a commission (but this gal didn’t want to call it that cuz she says its not an MLM) from product sales to your customers and you get paid on the health coaches under you….of course…they are not a downline cuz as this lady insisted…it is not an MLM…very annoying to talk to her after awhile
FK: All that sounds very odd – wonder how people want to get into such a strange program at all 🙂
So why do companies such as Medifast, Beach Body, Market America and others insist they are not MLM when clearly they are selling products for a commission and also recruiting others into the business opportunity to be compensated for their efforts?
One conclusion could be because network marketing and MLM have a bad reputation for being considered a pyramid scheme. For that reason the sales recruiters for these “Non-MLM” companies want to convince you that you are not joining an MLM company. If they can accomplish this their recruiting becomes much easier. Let’s face it, how many want to join an MLM company? Exactly…because of the misconceptions.
So lets be honest and call a spade a spade. Take Shape For Life, Beach Body, Market America and all the others that insist they are NOT MLM>>>well read the definition again; they are, so don’t fall for the “We are not MLM”.
There are many small investment, legal and legitimate companies that are proud to be MLM companies. These companies have been providing really great products, services and incomes for hundreds of thousands of ambitious entrepreneurs who are looking to better their financial future and will continue to do so…
So what is going to be easier for you, staying with your current 9-5 job or learning about a business opportunity which would help you make more money more easily without jeopardizing your current job or career?
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Dave and Darlene Mills
Leadership With A Vision
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