What is mlm? Is it a scam?

Discussion in 'Growing and Managing a Business' started by Klingeberg, Dec 3, 2013.

  1. Klingeberg

    Klingeberg
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    Hey all, What do you mean by mlm[Multi level marketing]?
    I know its a marketing technique but can you elaborate? Because i think its a spam! What you say??
     
  2. bethw

    bethw
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    MLM or Multi level marketing is a distribution technique where independent salespeople represent a parent company and earn commissions based on how much product they sell. You must always do proper research in order to avoid MLM scams. Look at if the company have a product, or are they just a scheme to sign up new recruits.
     
  3. Fate

    Fate
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    Like you said it is Multi level marketing. So you promote and sell products of other companies and earn commission. There are many companies that work on this model like Amway. But there might be scammers also. So choose only established companies.
     
  4. vina

    vina
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    I got involved in mlm few years ago. I just suggest, you look for good company with good product with good reputation.
     
  5. Amirath

    Amirath
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    Mlm (multi level marketing) means an individual doing promotion individually for several products and earns commisions on that. There are many mlm companies, some companies are fraud too.
     
  6. Mark T

    Mark T
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    In my own understanding, MLM or Multi Level Marketing is more of direct selling plus the creation of network of people who will also sell the product and earn commissions from products sold. The problem is, because MLM people get commissions too from getting new recruits, they tend to work more on getting these people instead of direct selling - which is the core business purpose of MLM.

    Regards,
    Mark
     
  7. anandshah

    anandshah
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    MLM is a legitimate business model that uses direct selling and relationship referrals as a method of selling a company’s products or services.
     
  8. Maxtroy

    Maxtroy
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    All MLM companies are not scams. But there are some companies you should avoid and I won't name them here but you must do your due diligence before investing your hard earned money in any MLM company.

    The scam happens if the invested money is used for purposes other than what the MLM company was formed for. Usually MLM companies without any tangible product heads south after being unable to stay afloat.
     
  9. aslamengineer

    aslamengineer
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    Have anybody heard about qnet, is it a scam, but looks intresting to me, but i am catious before investing ?
     
  10. marriott

    marriott
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    aslamengineer, are you talking about qnet a Hong Kong based company?
     
  11. Klingeberg

    Klingeberg
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    Can you tell me which are best companies of MLM business?
     
  12. angela.naethon

    angela.naethon
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    Never heard this type of name.
     
  13. kevinkrieger

    kevinkrieger
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    Multi level marketing is a system for selling goods through a wide network of distributors. From 1999 to 2009 there is lots of mlm companies works in India.
     
  14. Henry Calvin

    Henry Calvin
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    MLM is not a scam.
    It's not a scam at all. But people like to think of it that way.
    If it was a scam then it would have been banned in the whole world.
    MLM is a very old business, its been going on for centuries. But no one finds it to be a scam because its on you to understand if you have the skills to further sell things.
    Its all about having the ability to be a good sales man. if you are a good sales man then you can sell it, if you cant sell it then you think that you were scammed into it. Otherwise there are many people who have used this marketing skill and made millions because they have the ability to sell things.
    Now its up to you to understand what is the product, and can you sell it or not.
     

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