The structure of the multilevel marketing is a pyramid structure and well you can think of it as a compensation structure which is staggered. Almost all large organizations in the world are using it as well. Salespeople earn commissions, bonuses wins for Head of sales and so on upwards. This maybe the question, because you have to pay to participate and that is not true as it is a standard model of franchising.
The cost of a traditional franchise shrinks in comparison to the cost of a membership in a multilevel business. Of course there are illegal pyramids and other scams. This is where the money comes from affiliated people, with a little or no product to be shipped.
The real problem is that the business is not multilevel itself, but some people are still attracted to it. It is just a multilevel business model, and the truth is that they are an accumulation of micro-franchises, which pays very highly to begin shortly with the potential for profits and there are those who achieve this in a big way.
But these same things that make it attractive to some people also make it attractive for people who are not ready to be masters of their own multilevel business.
The most notable features that make it an attractive multilevel business for people are:
o They have had little success in business or profession and have little money saved for investing.
o They do not have experience in other businesses or their own.
o No previous experience in sales.
o Little or no experience developing relationships with employees / business partners.
o Not satisfied with their current income level.
The point here is not to highlight that these things are bad, or that describes the majority of multilevel business owners, this only describes a disproportionate number of multi-business owners and most of them have nothing to remedy it.
As a result, many distributors just like to do this:
o On selling the opportunity.
o Inappropriate discussions in social situations.
o Coming despair.
o On fixing the new distributors and customers to abandon the existing ones.
o Becoming so disappointed or inadequate when they talk about the business.
Again, this does not describe most of the distributors, but describes a considerable amount to tarnish the reputation of all others. To prejudge someone based on a minority is a horrible mistake, but we must realize that most prejudices have some basis in reality, even if it has been distorted.
There is always a first time for everything. And a multilevel business is a fantastic opportunity to get your first business, the first relationship of sales. My opinion is that we acknowledge it is a business and you as the owner and if you have never been an owner before and if you’ve never done sales before, if never before worked with distributors, you need to learn how to do this, not just a multi-expert but an expert in these areas.