What is MLM?

Evgeny Lukashenko
Evgeny Lukashenko
March 28, 2013
What is MLM?

Today, more than five thousand MLM companies are registered and successfully operating in the world. Network marketing has penetrated into our country relatively recently, just over 20 years ago. So, let's see together what MLM and network marketing are and dispel some of the prejudices associated with these concepts.

MLM: what is it?

First of all, wondering what MLM business is, we should not forget about its definition. MLM is an abbreviation of “multi-level marketing”, which literally means “multi-level marketing”. First of all, this structure is focused on the promotion of any product or service. Accordingly, in the network business there is a certain product, and this is the main difference from the "pyramids" (hereinafter referred to as without quotes).

What is a pyramid?

What is MLM, we have already learned, albeit superficially. What is a pyramid? To begin with, this is a form of fraud developed in its primitivism. In our country, as in a number of other countries, the creation of financial pyramids is an illegal activity.

The name itself explains the structure and principle of operation of this trap for the naive: the lower tiers are well paid by the top for rising closer to the top. The top of the pyramid removes fat cream and destroys the structure before the overwhelming majority of the participants have time to get at least some profit. The only way to earn money in the pyramid is guaranteed to provide an infinitely large number of participants. That, of course, is not possible. Many people who have no idea what MLM is, are trying to neglect this kind of business in order to completely protect themselves from various kinds of troubles.

To confuse MLM with the pyramids, not knowing what MLM is, in no case is impossible.

I think we were able to tell you what MLM is and how not to confuse the network business with ordinary fraud. Remember, the availability of goods is the main feature by which you can determine whether you have contacted fraudsters or not.

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