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What MLM isn’t!
For a start, it is not illegal pyramid selling. Nor is it any kind of “Get Rich Quick” scheme, despite the endless, brainless ads you’ll see that promise instant wealth for no work. That’s the “pyramid selling mentality” at work, just as you’ll find it in investment property, share trading, real estate or any other activity in which genuine fortunes can be made – and just as easily lost. You can learn more about this here.
What the “Get Rich Quick” merchants never tell you, of course, is that those fortunes are made by
- hard work
- astute judgement
- knowledge
- skill
- time
Plus occasionally – very, very occasionally – by good luck.
MLM is a business system in which you invest time and effort, not money. If an opportunity you’re considering requires you to invest more than $200 for an initial starter kit (including products), you may need to investigate a little more thoroughly.
If your would-be sponsor or other upline leaders encourage you to invest money in product in order to boost your bonuses, be careful… this is called “front end loading”, and the person who really benefits from your large purchase is usually them. Not you. You can read more about it here.
Directory • What it is • What it isn’t • How MLM Works • Return on Investment
Brief History • MLM FAQs • Reward Plans • Present Trends • The Future
©1999 The Profit Clinic. All rights reserved. This page updated 24 August 2002.