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The Multi-Level Business, A Primer

Jul 15, 2008
Sales and marketing have really evolved through the years, perhaps as more economic crunches and recessions continue to plague every nation.

Selling commodities has always been a tough task. That is why innovative and skillful managers have been striving to overhaul the traditional sales process so figures and profits could continue to buoy up, despite prevailing economic situations.

In the 1980s, the marketing industry was shocked to find several players handed to their members the tedious task of distributing products. Commission payments were handed as baits to the dollar-hungry sales team.

From that, the notion of the multi-level business transactions came up. As managers and sales people strived to keep sales figures up, they had adopted different strategies to keep up. Apparently, the multi-level business scheme was the most significant.

From then on, multi-level types of business transactions have been sprouting left and right, surprisingly, not just in the US, but also in other countries, even the third-world nations.

Multi-level businesses

Multi-level business transactions are actual combination of franchising and direct marketing. Direct marketing in the sense that the company would directly distribute products to members.

The members would then open franchises for redistribution. In the event, other sales people are recruited to sell the products. Thus the setup goes like this: the company directly sells the products to sales team. The sales team then recruits people and sell the products to them.

The recruits would then recruit more people who would agree to sell the products. The recruitment process goes on, and down the line, the products' prices bloat, making the product extra expensive.

In the end, economists would profoundly assert that people on the bottom of the somehow pyramid scheme would gain very little benefits compared to the earnings generated by the company.


The name of the game on multi-level business transactions is persuasion. Certainly, people would not be recruited to join the sales network if the sales personnel who recruited them were never convincing enough to lure them.

The promises of financial gains and commissions surely would lure people to get into even the strangest of business transactions.

Doing a multi-level business is never an easy task. But companies succeed in doing so. These companies do not practically care about how businesses go down the line of the network, as long as the top reaps most of the benefits.


In the United States alone, multi-level businesses are legal operations. As such, companies and sales managers doing so have all the legal vests to recruit and convince people to get into the network.

However, there are several scrupulous scammers who take advantage of the situation. The setback would be that people could hardly recognize between the legal and the illegal pyramid networking schemes.

Current legislation would certainly not do anything against multi-level businesses because technically, they are legal businesses, which generate revenues the legal way.

Despite a rising number of complaints against multi-level businesses, more and more companies start up and adopt the scheme.

Many people have fallen as victims to the anomalous transactions. But still, there are people who continue to participate. As long as there are people who testify to have reaped profits, there would be people who would aim to parallel these greats fortunes.

Thus, there is truth to the saying 'Money matters'.
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