Are YOU being lied to? If you're in network marketing or MLM, the answer is probably YES. 
Free Shortcut into Multi Level Marketing Issues
Posted in MLM (Multi-Level Marketing)
Multilevel marketing is also called network marketing and referral marketing. The idea behind MLM is simple. Imagine you have a product to sell. A common MLM product is some sort of panacea, such as a vitamin or mineral supplement. You could do what most businesses do: Either sell it directly to consumers or find others who will buy your product from you and sell it to other people. MLM schemes requite that you recruit people not only to buy and sell your product, but also to recruit people who will not only buy and sell your product but also to recruit people—ad infinitum. Only there never is an infinitum to move toward. This process may seem unusual to traditional business people. Why, you might wonder, would you recruit people to compete with you?
MLM magic will convince you that it is reasonable to recruit competitors because they won’t really be competitors since you will get a cut of their profits. This will take your mind off the fact that no matter how big your town or market. It is finite. The well will go dry soon enough. There will always be some distributors who will make money in an MLM scheme. The majority, however, must fail due to the intrinsic nature of all pyramid schemes. Those who supply the products and the motivational materials that seem to be an essential part of any MLM scheme make the teal money. MLM Is a system of marketing that puts more emphasis on the recruiting of distributors than on the selling of products- As such, it is intrinsically flawed- MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence. Unfortunately, no matter what product MLM is doomed to produce more failure than success.
For every MLM distributor who makes a decent living or even a decent supplemental income, there are at least ten who do little more than buy products and promotional materials, costing them more than they will ever earn as an MLM agent. The most successful MLM scheme is Amway. It has millions of distributors worldwide with sales in billions. At the turn of the century, the average Amway distributor earned about $700 a year in sales, but spent about $ 1,000 a year on Amway products- Distributors also have other expenses related to the business, for example, telephone, gas, publicity material, and tune spent at motivational. The reason MLM schemes cannot succeed is because MLM marketing is, in essence, a legal pyramid.
Still, with the advent of the Internet technologies, MLM business went online and gained popularity. No matter what skeptics say, Internet MLM can be profitable. Of course, you will have to work hard and be a real leader.
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