Disguised MLM – How to Avoid
- Author Andrew Mullins
- Published May 12, 2009
- Word count 426
If you are really new to the world of internet business or work-at-home job opportunities, you may not know what MLM means. It means Multi-Level-Marketing. MLM is similar to a pyramid scheme but it isn’t exactly the same.
True pyramid schemes don’t involve the selling of an actual product but MLM is all about selling an actual product.
According to this glossary of Internet terms, "Multilevel Marketing is selling products by using independent distributors and allowing these distributors to build and manage their own sales force by recruiting, motivating, supplying, and training others to sell products. The distributors' compensation includes their own sales and a percentage of the sales of their sales group (downline).
"So," you say, "that just sounds like a good idea for making money." Well, it IS a good way for making money. The problem is that it is illegal.
Do you see that tip-off word, ‘recruiting’? The other tip-off that this is a MLM scheme is the phrase, ‘percentage of sales’.
There is nothing illegal about setting up an affiliate program and PAYING a percentage of sales to those who sell your products or services to others. There is nothing illegal about COLLECTING the percentages that are offered by the producers of the products or services. That is simply good business and a more than just common practice in the Internet business world.
The problem arises when you start COLLECTING percentages of sales from people whom you have recruited to sell the product. Then another level is added and it becomes multi-level marketing. Even one additional level is illegal but there are MLM schemes that will have many, MANY layers.
The main Internet banking and money exchange on the Internet is Paypal. Paypal employs full-time personnel to search for and identify MLM schemes. When these schemes are uncovered, the account (and all attached accounts and credit cards) are frozen.
Yes, it is true that sometimes Paypal does misidentify a perfectly legitimate business as a MLM scheme but it doesn’t happen very often and the problem can usually be resolved in just two or three business days. This very thing happened to a friend of mine not long ago. It was resolved but not without him being able to prove that his business was not a MLM scheme.
This does point out the fact, however, that there are those who are looking for illegal MLM schemes. You may think that you are very anonymous on the Internet but when you do business on the Internet you are no longer anonymous.
Learn more about affiliate marketing with a FREE report: How To Make A Fortune From Affiliate Marketing".
The BEST way to be successful with affiliate marketing is to be informed. Learn more at jammagot.com
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Commercial Cleaning Services in Auckland: A Deep Dive into Angel Cleaning
- Can AI Replace Writers? An In-Depth Look for Marketers in the Digital Age
- How Anyone Can Start an Online Business Selling Digital Products
- Introduction to Commercial Cleaning Services in Auckland and North Shore
- The Value of a Startup Coach: Guiding Entrepreneurs Toward Success
- Can I Do Affiliate Marketing Without Showing My Face? A Complete Guide for the Camera-Shy Marketer
- How to Merge Images: A Step-by-Step Guide for Online Marketers
- Steady Slope Marketing: Launching Your Small Business with Google My Business and Digital Marketing
- Why Aqueous Ozone Disinfecting is Revolutionizing Restaurant Hygiene
- Top 5 Ways To Generate Low Cost Website Traffic
- 5 WAYS TO EARN MONEY ONLINE FROM CONTENT WRITING
- Our Journey: The Story Behind All Seasons Cleaning Services
- All Seasons Cleaning Services: A Commitment to Excellence in Exterior Maintenance
- All Seasons Cleaning Services: Your Trusted Partner for Roof Cleaning in Vancouver WA and Portland OR
- Energy Efficiency Considerations for Sliding Glass Doors
- The 7 Best Ways To Make Money Online From Home
- 8 Compelling Reasons to Hire the Best Interior Design Firm in Dhaka
- The Ultimate Guide to Selling Your Land in Lee County
- The Process to Make Cannabis Oil
- How to Choose a Profitable Online Course Niche in 2024: A Complete Guide
- Sustainable Comfort: Exploring Heat Pump Replacement Services in Milwaukee
- From Dog Bite to Bath Bliss: The Tale of Bayside Soapworks
- Keeping Your Milwaukee Home Cool and Comfortable: A Guide to Home Air Conditioning Services
- Mastering the Art of the Hustle: Golden Rules for Success
- The Advantages of Toca Boca: Engaging, Educational, and Entertaining
- ac repair somerset
- How to Get the Money to Start Your Business: 3 Simple Steps – No Credit Needed
- How to start making passive income through affiliate marketing.
- How to Start Your Supermarket Business in Dubai?
- The Art of Stain Removal: Proven Techniques for Tackling Tough Spots