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An Overview of MLM Companies

Jul 9, 2008
In case you have never heard of MLM, the acronym stands for multi-level marketing. The name illustrates the way the MLM companies function. For example, MLM distributors sell their products to other people and try to sign them up as distributors. Then, rather than receiving a regular salary, MLM distributors are compensated based on the number of sales that they make and the number of distributors that they recruit. Compensation plans may vary from company to company, but they are almost all connected to those multi-leveled networks of distributors.

In general, MLM products tend to be related to the wellness and beauty industries. For example, skin care lotions, make-up and dietary supplements are several common products produced by MLM companies. Unfortunately, MLM products also tend to be incredibly expensive. Distributors can usually buy the products for a discount though. That is actually the sole reason why some customers become distributors. They are much more interested in buying products at discounted prices for themselves than marketing the products to others.

On the other hand, some people do become distributors for the MLM business opportunity that these companies provide because there are cases in which people have become very rich as MLM distributors. The majority of distributors can't make a living off their commissions though. This has earned MLM companies two very different reputations. Some view them as a fast track to success while others see them as rip offs and scams. As with other investment opportunities, the biggest rewards usually go to the early birds. Since they fund or sell the product before it is really established, they also take on substantial risks as well.

Whether you are on a quest to promote or demote MLM companies, one of the best ways to get your message across to your audience to use clear and simple language, reliable numbers and entertainment. For example, some of the most effective tools online that are used to discourage MLM participation are comical parodies. The more forms of media you can involve, the better.

If you are researching MLM companies and trying to make a decision about investing or participating, you can't rely on generalization because every MLM company is different. Even though it takes more time, research each company individually. Look for reliable sources that report on the quality of their products, on their distributor satisfaction and on their ethics. There will definitely be voices for and against each company. Your job is to weigh the claims against each other and make an informed decision.
About the Author
Believe Ventures, LLC (http://believethemovie.com/) has created one of the most entertaining commentaries on MLM companies. It uses common MLM stereotypes to entertain audiences and vindicate people who have been frustrated by MLM business. The author, Art Gib, is a freelance writer.
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