MLM - what is it?

The key demands of search engines near the acronym MLM frequent words like scam, pyramid, divorce and even a cult.And this is due primarily to the lack of understanding of the essence of the business people.Many believe that this is the usual pyramid scheme, in which the money is going "up" and deposited in the bank accounts of its organizers.Especially in the recent history of these "schemes" really worked and many of them lost their life savings.But such pyramids do not exist for a long time, and some MLM companies thrive for decades.And many "networkers" who work in them, achieve what could not be achieved on employment - financial independence.

What really?MLM - what is it?Let's start with the fact that this comes from the abbreviation of the English MLM, which stands for "multilevel marketing".That is, multi-level marketing.A marketing at its core - is the management of the organization.And this includes a commodity policy, pricing, advertising, market research, public relations, and more.That

is, it turns out that MLM - it's one of the ways of business management.And the essence of it is that distributors are not only sell the goods of his company, and for this purpose and attract new distributors.At the same time, "networkers" MLM do not do it for free.They get a percentage of their personal sales and turnover bonuses from a guest of the team.

And if "dig deeper", referring to the history, we can learn how originated the MLM industry, what kind of business.It all began in 1927 when Carl Rehnborg created on the basis of alfalfa supplements.And information about the beginning quickly enough to spread only through "word of mouth".That is Renborg talked about his supplements friends and acquaintances, who in turn shared the information with their friends.And this entire process has reached the point that Carl just does not have time to respond to the request of wanting to buy his goods.And then he was born a genius idea.He invited his friends not only to tell people about these supplements, but also sell them to give their commissions.Then he decided to pay the following lines and distributors, while building the first in the history of MLM network.

What kind of business, and what benefits it brings, and soon realized other people.Sam Rehnborg in 1934 founded a company called «California Vitamins», which in 1939 became known as «Nutrilite Products».And it worked such employees as Jay Van Endel and Rich DeVos.And they get experience in 1959 has organized its 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 scam crank their branded MLM.What is it gives?Yes legal cover their dishonest activities.And many people are losing their money and time, disappointed in network marketing in general.And to avoid this, you need to choose the right MLM company.And this created the Direct Selling Association, which includes only approved of them.In this association has a website, and the information on it is available to all members.So before you choose the network of the company, worth a visit.Then the chances of success in MLM business grow significantly.