MLM - what is it? Successful business or scam?

In the key queries of search engines next to the acronym MLM, words such as scam, pyramid, divorce and even sect are often encountered. And this is due, above all, to people's lack of understanding of the essence of this business. Many believe that this is an ordinary financial pyramid, in which the money goes "up" and settle on the bank accounts of its organizers. Moreover, in recent history such "schemes" really worked, and many of them lost their savings. But such pyramids do not last long, and some MLM companies thrive for decades. And many "networkers" working in them achieve what can not be achieved at work for hire - financial independence.

But how really? MLM - what is it? To begin with, this abbreviation comes from the English MLM, which stands for "multilevel marketing". That is, multi-level marketing. And marketing in its essence is the management of the organization's activities. And this concept includes commodity policy, pricing, advertising, demand research, public relations and much more. That is, it turns out that MLM is one of the ways to manage the business. And its essence is that distributors here not only sell the goods of their company, but also attract new distributors for this. At the same time, MLM networkers do not do this for free. They receive a percentage of their personal sales and bonuses from the turnover of the team they invited.

And if you "dig deeper", turning to history, you can find out how the MLM industry was born, what kind of business it is. And it all began in 1927, when Carl Rebborg based on alfalfa created nutritional supplements. And the information about them began to spread quickly enough only thanks to "word of mouth". That is, Renborg told about his additions to friends and acquaintances, who in their turn shared information with their friends. And the whole process reached the point where Karl simply did not have time to respond to the applications of everyone who wanted to buy his goods. And then he had a brilliant idea. He invited his acquaintances not only to tell people about these additives, but also to sell them, while receiving their commissions. Then he decided to pay the following lines of distributors, building the first ever MLM network.

What kind of business is it, and what benefit does it bring, other people soon realized. In 1934, Renborg founded a company called "California Vitamins", which in 1939 became known as "Nutrilite Products". And in it there were employees such as Jay Van Endela and Rich De Vos. And they, having gained experience, in 1959 organized their own brand, calling it "American Way Corporation" or "AMWAY". And now it is one of the largest and most prosperous network companies.

But in our time, many scammers turn their scams under the brand MLM. What does this give them? Yes, a legal cover for your dishonest activities. And many people, having lost their money and time here, are disappointed in network marketing in general. And to avoid this, you need to choose the right MLM company. And for this, the Direct Sales Association has been established , which includes only the proven ones. This association has its own website, and information about its members is available to all. Therefore, before making a choice of a network company, it is worthwhile to visit it. Then the chances of success in the MLM business will increase significantly.