Longaberger Fall
Longaberger Fall
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First off, let's define MLM, aka Multi Level Marketing Companies.
Sometimes called Network Marketing, it's a method by which a parent company sells to consumers through personal referrals and face to face sales. Like Tupperware.
MLM salespeople are not salaried, they are a form of distributor, or actually independent business owners, who sell the products of the parent company and receive a commission on each sale.
These independent business people build their market often through contact with friends and acquaintances, who order goods directly from the parent company, and also by recruiting more independent salespeople like themselves who also perform the same sort of sales efforts thus increasing the strength of the parent company's presence in the market place.
Each independent earns commission based on their own sales, as well as a percentage of their "recruits".
Even the best MLM company's often get a bad rap as "pyramid" or "Ponzi" schemes, which are illegal and differ vastly from legitimate MLM endeavors.
Let's briefly define what a Ponzi scheme is, so you don't fall into the trap of one.
The term "Ponzi Scheme" is named after Charles Ponzi, who emigrated to the United States from Italy in 1903. He was not the first scam artist to use the technique, but was so "successful" (if the term success can be applied to ripping people off) that is got named after him when he became a multi-millionaire in 1920 using the technique. A Ponzi Scheme is an investment plan that pays profits to the investors from the money they invested or monies paid by following investors, as opposed to from real profit. In a Ponzi Scheme, there is no real profit, it just relies on recruiting more and more investors, and using their funds to feed fraudulent profits back to investors who got in on the deal earlier on to keep them satisfied. Eventually, the number of potential investors dries up and the scheme collapses.
The best MLM companies are not Ponzi Schemes. They are a legitimate way of earning income by selling actual products at a profit, and yes, recruiting others into the operation, but again, there are real products and the business people involved in Multi Level Marketing operations can feel pride in their work and worth in tat they are selling something of value.
In the best MLM companies, the independent distributor makes commissions only on sales of the company's products and or services. While there are no sign up fees, a percentage of a "recruit's" sales is typically part of the deal, which is fine and legal.
In alphabetical order, some of the best legitimate MLM companies are:
Ameriplan, Amsoil, Amway, Arbonne, Creative Memories, Eniva, FreeLife,Herbalife, Isagenix, Longaberger, Mary Kay, Melaleuca, Mia Bella (Scent Sations), Nuskin, Pampered Chef, Party Lite, Passion Parties, Prepaid Legal, Quixtar, Shaklee, Southern Living at Home, Stampin Up, Tastefully Simple, USANA, and Xango.
This article is not an endorsement of or rating of any of these companies, but is meant to be informative only.
Building a MLM business can be tough. Trying to "sell" your friends or family members can only go so far. Learn how to build your MLM business completely online AND have it fund itself. For more tips and information on how to build your MLM completely online, head over to Kerry Ng's Blog
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