In search engine key queries, next to the MLM abbreviation are often found words such as a scam, a pyramid, a divorce, and even a sect. And this is primarily due to the lack of understanding by people of the essence of this business. Many people think that this is an ordinary financial pyramid, in which money goes “up” and settles in the bank accounts of its organizers. Moreover, in recent history such "schemes" really worked, and many of them lost their savings. But such pyramids do not exist for a long time, and some MLM companies have flourished for decades. And many of the “networkers” working in them achieve what cannot be achieved in self-employment — financial independence.
But how really? MLM - what is it? To begin with, this abbreviation comes from the English MLM, which stands for "multilevel marketing". That is, multi-level marketing. And marketing in its essence is the management of the organization. And this concept includes product policy, pricing, advertising, demand research, public relations and much more. That is, it turns out that MLM is one of the ways to manage a business. And its essence is that distributors here not only sell goods to their company, but also attract new distributors for this. At the same time, MLM networkers do this not for free. They receive a percentage of their personal sales and bonuses from the turnover of the team they invited.
And if you “dig deeper”, turning to history, you can find out how the MLM industry was born, what kind of business it is. It all began in 1927, when Karl Renborg created alimentary supplements based on alfalfa. And information about them began to spread quickly enough only thanks to word of mouth. That is, Renborg talked about his supplements to friends and acquaintances, who in turn shared information with their friends. And the whole process went so far that Karl simply did not have time to respond to requests from everyone who wanted to buy his goods. And then he had a brilliant idea. He invited his friends not only to tell people about these supplements, but also to sell them, while receiving his commission. Then he decided to pay the following lines of distributors, while building the first ever MLM network.
What kind of business it is and what benefits it brings, other people soon realized. Renborg himself in 1934 founded a company called California Vitamins, which in 1939 became known as Nutrilite Products. And in it worked such employees as Jay Van Endela and Rich De Vosa. And having gained experience, in 1959 they organized their own brand, calling it “American Way Corporation” or “AMWAY”. And now it is one of the largest and most prosperous network companies.
But nowadays, many scammers are turning their scams under the MLM brand. What does this give them? Yes, legal cover for their dishonest activities. And many people, having lost their money and time here, are disappointed in network marketing in general. And to avoid this, you need to choose the right MLM company. And for this, the Direct Selling Association was created , which includes only verified ones. This association has its own website, and information about its members is available to everyone. Therefore, before making a choice of a network company, it is worth a visit. Then the chances of success in the MLM business will increase significantly.