Guest guest Posted June 25, 2006 Report Share Posted June 25, 2006 Hi, I'll tackle this with an effort to be balanced. MLM aka Network Marketing is a method of marketing whereby the money that is typically paid by manufacturers to wholesalers, retailers and for marketing is instead paid out to an " independent distributor " , usually an individual person, and to their " downline " . The " downline " are people who have chosen to " enroll " under another person. When they do so, that person and their " upline " receive a small commision off of the wholesale price of their purchases. In this type of system, due to the typically low cost to enroll as a distributor, many (I dare say most) choose to do this simply to receive the wholesale price and never choose to build up an income by referring others. From the company's point of view this is perfectly acceptable. (Hint: if you want an income from the company, who you enroll under makes a big difference in the level of support you receive from your " sponsor " and their upline.) The products that tend to be sold this way are often unique and may require education for a person to understand the product. Thus to market the product through normal channels would require substantially more upfront capital by the company and far greater risk of failure. (Often this means millions needed for marketing to get similiar market penetration.) While there are some strong and successful companies who market this way, examples: Herballife and Amway, there have also been many companies who have problems and go out of business. When mlm companies fail, the distributors involved lose money, time and effort becoming discouraged and frequently swearing they wont do that again. I'm describing myself as one who in twenty years had never made any money in mlm dispite expending much effort. And was able to hold the promise to myself for the last decade or so. Well, until NCD. Also, occasionally MLM companies are confused with pyramid schemes which are illegal and designed specifically to defraud the people involved except for the company that starts the program. Legit MLMs are definately not pyramid companies. Over the last several years, in the USA, network marketing (aka mlm) has achieved a level of respectability due to stringent laws regulating their operations and the effectiveness of this type of marketing. (person to person). Many business schools including the Harvard School of Business now teach students about MLM and predict that over the coming decades the percentage of all products being sold will increasely be sold via mlm. Currently, only residents or companies in USA, Canada, Japan, China & Hong Kong may become a Waiora distributors. To get the product to people in other countries like the UK, Australia, etc. some independent distributors receive the product from Waiora and reship to the customers in countries not officially covered by Waiora. This of course causes increased expense to those customers due to double shipping, handling and duty. When you add all these costs together, it is not unusualy for the cost of the product to double. It's unfortunate but in today's ecnomic system that's the best that can be done. Hopefully this wasn't too much information. Forrist > > Sorry – you JUST said that to someone else but I still don't get it. How did > that affect us? S xxx > > > > Re: Re: Loaded Bowels Again - Oxypowder > FAQ sheet > > > > In a message dated 25/06/2006 14:42:28 GMT Daylight Time, > Moroza-@... writes: > > What's MLM? Sara > > >>>multi-level -marketing - we used to call it Pyramid selling in the UK > > > > Mandi x > > Quote Link to comment Share on other sites More sharing options...
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