What is Multi Level Marketing?
Members make their earnings based on the sales they have achieved in a particular product or service. This also includes the sales of people they recruit to join the business. Most of the time individuals who have recruited more members and deliver good sales results on products provide higher compensation due to attempts to transact in two different areas.
There is a "pyramid scheme" or Ponzi scheme, which is considered illegal. Most people associate multi-level marketing to these schemes because they also recognize themselves as legitimate network businesses. Due to the bad image brought by this scheme, many prefer to use their name for their business as "home-based business franchise" or "affiliate marketing".
The Commission is acquired in the process of selling certain products or services in legitimate network marketing. There is no income in what they call a "registration fee" or just hire themselves. Such marketing is always criticized for the questionable recruitment process in which they earn income and profits. They get sales from new members and members, who are considered end users of products and as distributors.
This criticism led to major changes in multi-level marketing in the early 1980s when many companies began allowing their members to concentrate solely on marketing and not on distributing or storing products. Most multi-level marketing companies now work as fulfillment companies by taking on product delivery, paying commissions and receiving orders from their clients.
Many people who are victims of illegal schemes in multi-level marketing are required to buy expensive products, but most of these schemes do not last long because most sales are not easy to resell.