The Misconception of Multi-Level Marketing
Ever wonder why people are so turned off at the mention of
Multi-Level Marketing? Is it legal? Is it a pyramid? Who
benefits the most? Where does the money flow? In this article we
will examine basic differences between Multi-Level Marketing and
a Corporate Structure.
Let's take the corporate structure first. Almost all of us work
in this type of hierarchy everyday. A CEO heads the corporation
or company. Below him/her are upper management people i.e. Vice
President, Controller, Senior Sales Exec...etc. Below them are
middle management people i.e. Department Heads, Retail
Directors, Consultants and various Supervisors.
Finally we reach the Sales Representatives, Customer Service
Representatives, Stockers, Cashiers, Cleaners, Drivers, etc.
So who makes the most money in this type of structure? If you
were to draw a flowchart this, it would look like a "Pyramid"
The CEO makes the most money as he/she sits at the top. Then a
few upper management people, then more middle management, then
most of the workers. It is the person at the "top" of this
"pyramid" that makes the most money, because in this type of
structure, you are paid based on "where you are" in the
structure. So, how do you make more money here? The only ways
you can truly increase your earnings are if someone in the
structure gets fired, dies, or quits. As a result, everyone in
the structure can move up.
So.... Let's take a look at a Network Marketing Structure and
then compare. On the surface, both structures are mirror images
of each other. BOTH look like a "Pyramid" structure. Flowchart
it out again. An affiliate sponsors someone, they sponsor more,
they sponsor more...etc. But...who makes the money here? The
worker at the top? Possibly, but most likely not. Here's why:
Even though this structure looks identical to a corporate
structure pyramid, in the MLM structure you get paid STRICTLY on
the work you do, not on where you are within the structure.
Wouldn't it seem fair that if you do more work, you should get
paid more money? This structure is simply a structure of
business owners. Pay is based ONLY on what you do, not your
position within the network. This is what differs Network
Marketing from a typical "Corporate Structure Job".
In the MLM structure YOU are in control of your income. In the
corporate world, someone else will always be in control of your
income. Always.