MLM is an acronym for Multi-Level Marketing. It is a very popular way to make money and in fact affect the distribution of money in the organization. It is a form of Pyramid Schemes discussed in my previous article.
In MLM, a pyramid like structure is created in the sales force of the organization. Usually in most of the organizations, a sales person gets a compensation for the sales he is able to generate. But in case of MLM, the sales person gets a compensation for the sales he generates plus a share from the sales generated by the salespersons which are recruited by him. So the overall structure is very similar to a Pyramid Scheme.
Though this structure is not considered very sane, but we have a large number of organizations which are actively involved in that. One of the most common example for the same is Amway.
There is always the lure of making large profits, if you are able to recruit large number of salespersons under you, thereby snatching a share from each sale generated by each salesperson.
I had myself been asked by many of my friends and even strangers to join as a sales group member under them. In fact one of the doctors we used to visit for my child's medicine told me that my son's growth would be much better, if I give him a product. I bought that medicinal product, and that costed me a whopping Rs.1100. The product turned out to be from the arsenal of Amway.
Though I believe that the product must be good, that's why the doctor referred it, but still the amount was very high. That time I realized that people are making serious money out of it, all you need is the marketing skill and ability to hit at the sweet spot of one's mind.
That's all for the day. See you later guys, till then happy money making.
Adios.
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