Desire for Wealth

Multi-Level marketing (MLM) is a form of marketing system whereby a product is being promoted mainly through word-of-mouth. A person who joins the MLM company will be required to purchase the product, either to personally experience the effectiveness or to sell the product at a retail price to earn a commission. This is one method of earning an income.

Thereafter, the person, as an associate of the MLM company, will start to recruit other people, such as his friends or relatives to sign up as a member of this MLM company. The associate will receive a portion of the entrance fee paid by his recruits, and a portion of the profits earned by all the other associates under him.

Multi-level marketing (MLM) plans, also known as “network” or “matrix” marketing, are ways of selling goods or services through distributors or associates. Multi-level marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor’s “downline.”

However, over the years, the image of Multi-level marketing has been tarnished by other similar but illegal pyramid schemes or Ponzi schemes. Nonetheless, many network marketing /multi-level marketing / matrix marketing businesses operate legitimately in various parts of the world.

Illegal pyramid schemes are multi-level programs where people pay an entrance fee for the sole purpose to recruit others to do the same, but generally have no product for sale at the bottom of the pyramid. Whenever someone introduces another person into the scheme, the referral will get paid.

Multi-level marketing, on the other hand, is legal as its system typically promise that if you sign up as a distributor, you will receive commissions for both your sales of the product and those of other people you recruit to join the distributors

Different MLM company has its own payout plan. Most come with additional bonuses as an associate climbs up the rankings. So other than the commissions coming from the sale of products and downlines’ sales, these bonuses are great motivators to spur associates to work hard and make a comfortable living.

On the whole, Multi-level marketing is definitely not a get-rich-quick scheme. A lot of time and effort have to be spent to learn the company system, sell the product and recruit other potential associates. Then as the network grows bigger, associates are responsible to teach and impart knowledge and skills to newcomers so as to create more wealth.