An Insight to Multilevel Marketing

There is a myth in the marketing arena that when the word "multilevel marketing" is heard, a sense of fear creeps into the mind of a person that he/she has been scammed or there is an element of a scam, this is due to a negative image that has been formed over the years about multilevel marketing. This notoriety is all due to some people that have made profits from multilevel marketing system. There is confusion between multilevel marketing and a pyramid scheme. The main difference between MLM and a pyramid scheme is that MLM is a legal business model while former one is scam. Talking in a layman term, MLM is a community business model whose purpose is to remove the middle man and thus lowering the overhead cost so that at the end the customer is not paying for operating cost, store front, labor, utilities and even conventional advertising media. On the other hand pyramiding schemes consists of investment of your money and in return get huge sums of money but in reality it is just relocation of money from down line to up line.The confusion is that pyramid schemes camouflage themselves as legal multilevel marketing business. These schemes bring the same vocabulary and the process of building up into play on your network. In both of the business models you have to market your product, you have to create "marketing network" either you will be sponsored by your up line or you will sponsor down line. The main thing behind the scene is that multilevel marketing is a legitimate marketing business. The commissions comes from down line are just like bonus but the main part of your profit come from your hard work that results in good sales.When you are entering the market MLM is relatively easy to get into. You may get into the business with a small amount, but it is a difficult business to survive in. On the brighter side it is a flexible marketing environment. You can just stay at your place and still earn considerable amount. You need not be a graduate to do this but of course technical sense would surely be of great help to do well in MLM.