some companies in an effort to do two things.
The first objective is to move products from their warehouses,
and thus increase their sales volume. The second objective is to
recruit "an army" of commission-only sales people. Make no
mistake about it! After you've stripped all the hoopla and
falderal away from these "super money-making opportunities", the
bottom line remains the same - you make money from commissions
allowed from the sale of products.
Generally speaking, very few people have any "real" sales
experience, and thus, if offered the opportunity to take a job as
a commission-only sales person, they'd run from it like the
devil.
At the same time, most commission-only sales positions are
"direct selling" opportunities. And, the definition of direct
selling begins with an explanation of what a door-to-door sales
person does.
Don't get me wrong... A lot of personal fortunes have been
amassed by commission-only sales people... For sure, when you
attempt to sell by mail, you're almost always involved in
commission selling, and direct selling.
What I'm saying is that most people are "duped" into joining
multi-level marketing programs without understanding that it is
commission sales and at least a form of door-to-door selling.
Worse than "duping you into joining their programs..." Almost all
multi-level marketing companies subtly encourage you to break the
law, and run the risk of huge monetary fines, long terms in
prison, or both!
This is done by at least, "inferring" that if you will find a
number of people to duplicate what you're doing, and in turn
encourage each new enrollee to keep the system going, everybody
will get rich!
Not so, my friend! That's a "Ponzi Scheme", and if you don't
really understand what a Ponzi Scheme is - allow me a moment to
explain: Such a scheme is any kind of money-making opportunity
where you get paid by recruiting, enlisting or soliciting other
people to follow your lead and continue a chain of events. In
other words, you'll be paid a commission from the people you
recruit -1; form the people they recruit -2; from the people they
recruit-3; and on into infinity.
This is the "secret" impact that most multi-level marketing
companies use to induce you to buy into their program. Such
practices are illegal, and subject to federal laws which could
destroy you. So called, bi-level marketing plans are the same
thing, as are chain letters, and people-helping people clubs.
They're all based upon the Ponzi Scheme. If you have any doubts,
take your money-making opportunity and sit down with your local
postmaster and discuss it's legality.
These things are illegal because if - as in a dream world - they
really worked, by the time one person had attained level number
five, he would have "signed" everybody on the face of the earth
with only the first two levels receiving any of the money. There
would be no body left for the third, fourth and fifth levels to
sell to...
Multi-level marketing companies get around the law by stating
within their by-laws that it is strictly forbidden to promote or
attempt to sell the program by mail. Then, when the postal
inspectors come calling on the little guy, the MLM company says:
He did it - we don't do such things - here, look at our by-laws.
The bottom line is as old as the hills: you can do anything you
want - legal or illegal - so long as you don't get caught - but
when you do get caught, you'd better be prepared to pay the
price.
Besides the terrible mess multi-level marketing has gotten a lot
of normally law-abiding & moral people into, it has "foisted"
upon these people personality changes that many of them do not
like. To usiness moxie" to make any money at it.
There's nothing wrong with commission selling - and if you're
good at it, you're good at it, you can make a lot of money if
this kind of selling - but remember that multi-level marketing is
commission selling - the way "distributors" are recruited is very
illegal, with the authorities closing down more MLM companies
every day - and it takes a special kind of personality to succeed
at it.
Karl Smith is an online marketer. Learn from the website:
http://www.imcmake-money-fast-online.com/Laser.htm