What is Multi-Level Marketing or Network Marketing?

Have you ever wondered why people are so turned off at the mention of Multi-Level Marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article, we will examine basic differences between Multi-Level Marketing and a Corporate Structure.

Let's take the corporate structure first. Almost all of our work in this type of hierarchy every day. A CEO heads the corporation or company. Below him/her are upper management people i.e. Vice President, Controller, Senior Sales Exec...etc. Below them are middle management people i.e. Department Heads, Retail Directors, Consultants and various Supervisors.

Finally, we reach the Sales Representatives, Customer Service Representatives, Stockers, Cashiers, Cleaners, Drivers, etc.

So who makes the most money in this type of structure?

If you were to draw a flowchart this, it would look like a “Pyramid” The CEO makes the most money as he/she sits at the top. Below them are a few upper management people, then more middle management, then most of the workers. It is the person at the “top” of this “pyramid” that makes the most money because, in this type of structure, you are paid based on “where you are” in the structure. So, how do you make more money here? The only way you can truly increase your earnings are if someone in the structure is promoted, gets fired, dies, or quits. As a result, everyone in the structure can move up.

So.... Let's take a look at a Network Marketing Structure and then compare. On the surface, both structures are mirror images of each other. BOTH look like a “Pyramid” structure. Flowchart it out again. An affiliate will sponsor someone, they sponsor more, they sponsor more...etc. But...who makes the money here? The worker at the top? Possibly, but most likely not. Here's why:

Even though this structure looks identical to a corporate structure pyramid, in the MLM structure you get paid STRICTLY on what you produce and the work you do, not on where you are within the structure. Wouldn't it seem fair that if you do more work, you should get paid more money? This structure is simply a structure of business owners. Pay is based ONLY on what you do, not your position within the network. This is what differs Network Marketing from a typical “Corporate Structure Job”.

In the MLM structure, YOU are in control of your income. In the corporate world, someone else will always be in control of your income. Always!


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