Yes, many people who have joined or at least been ‘prospected’ to join the form of business that claims to make these members get rich quick. Many of its members say that the MLM they follow is a real business with the product being sold. Those who are not members of MLM will usually consider this business no different from a pyramid scheme. The following are facts you may also want to know even before choosing the best company no matter how many MLM Companies out there.
1. Gray Area Between MLM and Pyramid Schemes
Pyramid schemes are a business model that depends only on recruiting more members for their earnings. The person in the top position recruits the distributor. The distributors then recruit more distributors to work under them and so on. In essence, there will be a pyramid formed by recruiters and distributors. MLM is almost similar to a pyramid scheme, only the emphasis is on product sales, rather than recruiting members. The pyramid scheme in MLM happens because in that business one may recruit members as a seller also called ‘downline’.
2. MLM is more focused on recruitment will not last long
MLMs earn substantial profits by ensuring there is a steady flow of funds from new members who send money to their upline. Although most MLMs claim their business comes from product sales, there are still many more focused on hiring. This latter model is certainly a blemish because of the limited number of people on earth.
3. MLM business continues to grow
Through a continuous recruiting process with a variety of tactics, MLM companies continue to gain more and more new members. They believe that working with this company will give them financial freedom, even more, with the lure of everyone can do it or with frills work from home.