What is the fundamental difference between multilevel marketing and traditional business models?
The truth is that traditional business models and multilevel marketing share a lot in common. However, there is one fundamental difference and it is the root cause of controversy surrounding multilevel marketing companies. The most widely held assumption about the difference is that multilevel marketing companies encourage their sales representatives to recruit additional sales representatives (downline) and are paid commissions from their downline. Thus, as recruits get new members to join their downline, and their downline recruits get their own downline, the levels continues to grow and, a pyramid structure is formed. However, recruiting is not, in and of itself, the fundamental difference. In fact, most sales organizations have managers that profit from the efforts of their sales team. And these managers are also responsible for recruiting sales agents that will help them increase their profits. And those managers have managers above them that are paid based on their performance to
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