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Direct Sellng

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Submitted By chiCHA
Words 390
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What is multilevel marketing, and is it legitimate?
The term multilevel marketing (MLM) is defined by a number of state statutes as the following:
Multilevel distribution is defined as any person, firm, corporation, or other business entity which sells, distributes, or supplies for a valuable consideration goods or services through independent agents, contractors, or distributors at different levels wherein such participants may recruit other participants and wherein commissions, cross-commissions, bonuses, refunds, discounts, dividends, or other considerations in the program are or may be paid as a result of the sale of such goods or services or the recruitment, actions, or performances of additional participants.”
Multilevel marketing (MLM) is a legitimate business model used by many direct selling companies. In a multilevel system sellers earn money based on the sale of products and services – either those they make personally or those made by others who they train and mentor. Direct sellers earn nothing for merely recruiting others.
What’s the difference between a pyramid scheme and a legitimate direct selling company?
Pyramid schemes seek to make money from you – as opposed to from the sale of goods and services. They are illegal scams in which those at the top of the pyramid make money from those who buy in below, making recruitment the primary or only goal. There is often a substantial buy-in fee and no actual goods or services to sell. In addition, they promise large earnings with little effort.
Meanwhile, legitimate direct selling companies seek to make money with you as you build your business (and theirs) by selling real products and services. Start-up costs are minimal, often $100 or less. While your earning potential increases when you recruit others, it is not a requirement. Like traditional businesses, legitimate direct selling companies derive

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