Multilevel network marketing is another way of saying multi-level marketing, network marketing and direct selling. This is a business strategy employed by some recognizable corporations in selling and promoting their product. Sellers, sometimes called representatives, agents or franchisees are responsible for a large portion of the sales of a company’s products. In turn, the compensation received by the marketing force is by way of sales commissions. Each agent is encouraged to recruit more people to become additional sellers for the company. They are considered to belong downline the organization and will have to share commissions with the person who recruited them. This compensation scheme is the basis for what others would berate as a pyramid scheme.

Multilevel network marketing is not a pyramid scheme and is not illegal. This was one of the findings of the Federal Trade Commission in the case entitled In the Matter of Amway Corporation Inc. A pyramid scheme involves the following conditions.
• Entry fees are required when recruited to the marketing force,
• There is a precondition of making a sale before a performance bonus can be given,
• Excessive inventory must be assumed by the seller, and
• Products are required to be sold retail

Most of the successful multi-level marketing companies do not enforce the conditions listed above. In fact the DSA or the Direct Selling Association, a grouping of more than 200 multi-level marketing companies applies the highest standards of business ethics among its members. An unsurprising fact that many would agree is that multi-level marketing is not a new phenomenon. But the fact that the Direct Selling Association has been in existence for almost a hundred years now will impress many. This only stresses the point that MLM is a legitimate business model. The bad press surrounding multilevel network marketing is mainly because of the people who are venturing into it. Many of them are drawn to MLM but:

• They have little experience in running and managing a business,
• Have very little experience in sales,
• Have very little experience in creating and maintaining business networks, and
• Have this expectation that working part time is enough to generate a decent amount of income

With these kinds of entrants into MLM, the number of failures and disappointments are naturally high thus the reputation it generates.

The numbers that are related to MLM are significant. More than 29 billion dollars in sales were generated in 2008. More than 15 million entrepreneurs are involved in direct selling and is a major money making opportunity for women where they outnumber men 8 to 1. Multi-level marketing is one business where absolutely not startup money is required. Thus, direct selling is a ray of hope for those who are unemployed or for those who consider themselves underemployed. Direct selling is a perfect career for those who want to work part time. In fact of the more than 15 million who are involved in MLM, about 91 percent worked less than thirty hours a week.

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