How to spot a Multi-Level Marketing (MLM) plan

MLM

NAME: Multi-level marketing (MLM)

NATURE: Legal

SOLE PURPOSE: sale of real market value goods and services

PROFIT GENERATION: Commission plans on sales and recruitment (optional)

ENTRY: Dependent on the MLM Company

PRODUCTS/ SERVICES: Available and they possess

  • real market value
  • good quality
  • great value to customer

OPERATIONS:

  • A sales representative (distributor) sells goods and services directly to customers
  • The sales rep then recruits ONE person under him and trains him/her how to get customers
  • When the person recruited knows how to get customers, he is then trained on how to recruit others and therefore also becomes a distributor and the cycle continues

INTERACTION WITH PROMOTER: Indirect

COLLAPSE: Self sustaining

BENEFICIARIES: Active members who sell the goods and services

REFUND: Some offer buy-back guarantees at a certain percentage for any unsold products

Related Posts: How to spot a pyramid scheme ; How to spot a ponzi scheme

See also  Safaricom App Set To Be Discontinued

konvigilante

https://www.facebook.com/TheKonvigilante https://www.twitter.com/Konvigilante

Share your thoughts

Discover more from Mobifinancehub

Subscribe now to keep reading and get access to the full archive.

Continue reading