A lot of people who hear the words „multilevel marketing“ run screaming in fear of being scammed, or at least, being part of a scam. This could be due to the negative publicity that mlm marketing has been receiving to date. The notoriety of this business model (which is legitimate, by the way) springs mostly from the few rotten apples (read: pyramid scheme) that have made it into the multilevel marketing barrel.

One thing is certain: the main difference between the two is that mlm marketing is a legitimate business model, while pyramiding scheme IS a scam and IS definitely illegal – not to mention immoral and downright dirty. In layman’s terms, multilevel marketing is a highly social business model that seeks to cut out the middle man and lower the overhead cost, so that the end consumer isn’t paying for the storefront’s operation expenses, including labor, utilities, and even the traditional advertising media. Pyramiding schemes, on the other hand, will want you to invest your money on the possibility of big rewards for small amounts, but is actually just a transfer of money from the „downline“ to the „upline“ (to be explained later).

You know what they say, if it’s too good to be true…

It’s likely to be a pyramid scheme if it’s too good to be true. Multilevel marketing and pyramid schemes are often mixed up because the latter utilizes the same techniques as the former. The business model is designed in such a way that people end up thinking that it’s the same as mlm marketing. In other words, they use deceit in putting up a network.

In both business models, you have to sell some kind of product, you will create a „marketing network“, you will either be „sponsored“ by your „upline“, or you will sponsor a „downline“ with the idea that the „upline“ gets commissions from the sales of the „downline.“ The first thing that would tell you that you are in a legitimate mlm marketing business is that the commissions from your „downline“ are just a plus, but the bulk of your profits come from YOUR sales and YOUR hard work.

Off to the market.

Multilevel marketing is a great business if you are the type who wants to work at home in your pajamas. It’s also pretty easy to get into, even if you only have $29 as capital. It’s very flexible, and you don’t need to have a college degree to go for it, just a bit of computer knowledge.