YBC Academy : MLM – Business of the 21st Century
What is it?
MLM meaning Multi-Level Marketing is where individuals seek to grow their sales base by word of mouth and direct recommendations! The majority of them are privately run companies (i.e no shareholders and everyone involved can earn the right to year end bonuses) and a small number of them are listed on the stock exchange where dividends are paid to the shareholders.
Multi- level comes into play when some of the customers who buy regularly see the advantage of registering with the company direct so that they can receive a hefty discount on their recurring purchases and so on and so forth – this then provides the “multi-level” effect.
Notice I hesitate to use the word “selling” and this is because even though people are happy to purchase MLM products when approached about considering it as a business under the umbrella of the MLM company the first question they ask is – “Is it selling?” In the majority of cases these people are usually already in business. No one seems to like the word “selling” despite this being key in any business structure. So please note that it doesn’t matter if you are selling a service or a product or indeed yourself at an interview without sales there is no business and/or income.
Are MLMs Pyramid Schemes?
This is a popular question that is asked a lot so let’s get this straight from the getgo…
It’s pretty simple really, Pyramid schemes do not involve an actual product or service and are illegal.
MLMs have a product or service to sell directly to the consumer and are governed legally by each country’s Direct Selling laws – in the UK this is the DSA (Direct Selling Association).