MLM stands for Multi-Level Marketing, also known as Direct Selling and Network Marketing.
People often get confused with Fraud Pyramid Schemes and MLM. In reality, MLM is a product-based pyramid scheme. The pyramid scheme includes money-circulation while the MLM concept is used for marketing quality products.
But still, pyramid schemes exist on the name of MLM and use dummy products to show themselves legit. So an easy way to check the legitimacy of an MLM company is to check their products. If products are reasonable to price and of decent quality, then only you can put a step forward.
Considering MLM as a genuine industry, there are also various controversies roaming around. MLM removes middlemen, but actually, there are thousands of middlemen (direct sellers) who are eagerly waiting for more purchases from the downline to get some commission.
At the end of the day, products price get hike and actual consumers have to pay higher. Amway is a live example of it. Amway India MLM Plan provides an earning opportunity, but their products are 10 times costly.
It takes around 3 to 4 years of real grind to get success in MLM but in the initial few years, you have to buy extremely expensive products to keep your ID Active. And still, there is very little chance of getting success.
Moreover, False Promises are always there. Showing a fake luxury lifestyle and luring youngsters has become a tradition of the industry. Even some top international companies have the same scenario.
Motivation is the prime weapon of this industry. Companies hired motivational speakers. These speakers narrate some fiction stories and link them with MLM.
Leaders and Speakers show MLM superior to other Jobs and Businesses. Regardless of any logic and real facts, they present MLM as the best occupation of the universe.
In various cases, some people show fraud leaders recruit others in the name of fixed salary and job. The required product purchase is shown as initial joining fees for the job. After few months, candidates come to know that, they have become part of an MLM by fraud.
But still there few advantages of MLM. When a person gets engaged in Network Marketing, they learn various things, like
- Communication Skills
- Leadership Quality
- People Skills
- Dreaming Big
- Time Management Skills
- Life Skills
But still, MLM is not recommended. If someone has any passion or interest in any field, then following the passion is the best option. Because the person may earn less money but will be happy about work.
And last, if a person only wants to become rich in life, then doing own business or becoming an investor are the only two choices left.