| The mere mention of the term multilevel | | | | they pay to join in the fun. While some shun |
| marketing often causes a shudder among the | | | | the idea of having to pay to have a sales |
| uninformed who still believe that network | | | | job, it is consistent with traditional |
| marketing is a takeoff on illegal pyramid | | | | business models that charge a franchise fee |
| schemes and over the years have been harassed | | | | for the right to sell products under the name |
| by friends and family members telling them | | | | of an established business. However, the |
| how they are not thinking clearly for | | | | lines between a scam and a legitimate network |
| rejecting the invitation to get in on a | | | | marketing business can be blurred if they fee |
| ground floor opportunity. However, network | | | | is divided among members of the upline and |
| marketing, or multilevel marketing, is a | | | | the only thing the person receives for their |
| legitimate business practice, providing it | | | | payment is the right to recruit additional |
| meets certain criteria established by | | | | people for their own downline. There should |
| government regulators. Essentially, a | | | | be some tangible evidence that they received |
| marketing network consists of a group of | | | | something of value for their payment such as |
| people working together for a common cause, | | | | training materials and the ability to call |
| and in most cases with multilevel marketing, | | | | for help if they feel overwhelmed. One of the |
| it is to increase sales for a particular | | | | most common complaints from MLM participants |
| business or product. The focus of the program | | | | is the lack of information. If the sales |
| should be on selling merchandise and while | | | | training covers compensation plans and how to |
| recruiting new distributors into the fold is | | | | recruit new distributors instead of how to |
| important, it should never be the primary | | | | sell the product and the how the product can |
| focus. While most programs involve payment of | | | | benefit the customer, then the plan may be |
| an entry fee, so to speak, there should be no | | | | flawed in its approach to multilevel |
| continuing requirement to buy product in | | | | marketing. Selling the right to recruit new |
| order to earn commissions on sales. | | | | members is not the legal focus of a |
| Additionally, members of the network who buy | | | | multilevel marketing plan and legitimate |
| products for personal use usually do so at a | | | | businesses would rather sell more product |
| wholesale price and earn no commissions on | | | | than have more people in their downlines. |
| those sales. Companies that withhold | | | | Patience and dedication are required to be |
| commission payments unless a member of the | | | | involved in any network marketing plan, but |
| group has a certain number of people in their | | | | it also require confidence that what you are |
| downline may also be walking a thin line | | | | doing is offering a benefit to others as well |
| between a legitimate business and a pyramid | | | | as creating an income for yourself and those |
| scheme. With a legitimate business there are | | | | in your downline. |
| certainly attempts to bring in new | | | | |
| distributors into a person's downline, but it | | | | Dustin Cannon, of Next Level Enterprises, LLC |
| should not be the primary goal. The benefit | | | | is a successful Internet marketer working |
| to those doing the recruiting will be the | | | | with top leaders in the home business and |
| payment of commissions on the sales those | | | | Internet marketing industry. |
| distributors make and not on the initial fee | | | | |