How are Multi-Level Marketing and Network Marketing defined?
Multi-Level Marketing (MLM), also called Network Marketing (NM), in a general sense is a business model which utilizes a combination of direct marketing and franchising. Typically, individuals become associated with a parent company in an independent contractor relationship. Sellers are compensated based on their sales of a product or service, as weill as the sales of those they bring into the business. Take a few minutes to watch these videos on Multi-Level Marketing. They will help explain the concepts and principles that make MLM a valid business choice. Multi-level marketing has a recognized image problem because of difficulties in making a clear distinction between legitimate network marketing and illegal “pyramid schemes” or Ponzi Schemes. Nonetheless, many NM/MLM businesses operate legitimately in all fifty US states. Because of this image problem many new NM/MLM business do not use the words “multi-level marketing” or “network marketing” and instesd use terms like “affiliate Ma
