What can I say about MLM or Network Marketing that won’t immediately have your subconscious mind screaming “PYRAMID SCHEME”?
Stay with me here for just a few more sentences.
- MLM is NOT illegal. Pyramid schemes are illegal.
- MLM is endorsed by some very influential business people including Sir Richard Branson.
- Distribution of wealth is much fairer than in a normal business where the CEO makes £750,000 per year and the average worker makes £15,000.
So, if you’re still with me lets explore why MLM is a completely legitimate business model and how it could be the answer to your prayers if you are looking for a work from home business.
As long as the company is a member of the Direct Selling Association UK then they are legitimate and you know it is not a scam or pyramid scheme.
Reputable companies will offer a money back guarantee on any start-up costs making it completely risk free to get involved and try it out. Plus you keep any money you make in the trial period – pretty cool.
So why do these legitimate business’s get confused for pyramid schemes? I think it’s because people hear that you earn money from other peoples efforts which they believe is wrong. Just think about any other type of business for a second. They all make a profit because they sell their products or services for more than it costs them in wages they pay to their staff. Simple, the cost of employing people is less than they get paid. Why do we think this is ok but not MLM companies paying someone based on their teams sales? After all, they put time & effort in to recruit and train the team members and provide ongoing support for them.
No money is taken away from anyone else. The MLM company pay everyone the same commission on personal sales. The team leader earns a bonus from the company based on the sales volume of the team that they recruit and train. The more successful your team is the more bonus you earn. Your success is based on how successful you help others become. So in actual fact, MLM is more fair than a typical business model as everyone has exactly the same opportunity to grow their business and their income is completely unrestricted.
By the way, pyramid schemes are illegal because they either do not have any products or services to sell OR people earn money simply by recruiting people rather than generating sales. MLM companies only pay anyone based on sales.
Hope that helps clear things up?