do all mlm/network marketing companies work under the same model…the model that looks like a pyramid?

by admin on March 18, 2010

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{ 4 comments… read them below or add one }

Kurt W March 18, 2010 at 9:36 am

Yes

Jennifer F March 18, 2010 at 9:47 am

MLM is multi-level marketing…… and no not all look like a pyramid… some are what they call unilevel — where your front line is actually endless and not limited to a certain number.

Please do not confuse pyramid-mlm- ponzi – as all being the same…. and ie …. all being illegal. There are mlm companies that are legit and do offer quite good compensation.

There are also different type mlm compensation designs: aussie 1-up and 2-ups, binary, breakaways, forced matrix, unilevels….. each design has a different compensation pay out.

If you are looking to understand the difference between an illegal mlm and a legal one… I would invite you to read the “MLM Legality Test”. You can find a link to this document in my profile here on answers.

If I can help any further, please do not hesitate to contact me.

~jennifer
Helping others create income from home through education of the system and how it really works.

PS: Also, if you need help deciphering a certain comp plan, give me a holler as I have a fairly good understanding.

Unstoppable Dreams March 18, 2010 at 10:25 am

No, there are several variances in commission plan type, Binary, Matrix, Stairstep Breakaway, Unilievel and hybrids.
One thing that makes the MLM model similar is the “Hotel” or “Weekly” meetings and the compilation of a warm market list that includes your friends and family. Rarely would a MLM company teach you your true target market. Don’t take this wrong, I support MLM. I do not support what has given the industry a black eye, ehich consists of harassing friends, family and anyone within reach into joining a biz opp.

BEST WISHES!

Vickie S March 18, 2010 at 11:25 am

Generally, yes although it is the way the people in this pyramid are paid makes the difference between a good mlm and a bad one – they must be equal opportunity and not the guy on top making all, unfortunately, these types of marketing companies are rather cdm’s (consumer direct marketing)and not mlm’s.

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