A lot of people who hear the words "multilevel marketing" run screaming in fear of being scammed, or at least, being part of a scam. This could be due to the negative publicity that mlm marketing has been receiving to date. The notoriety of this business model (which is legitimate, by the way) springs mostly from the few rotten apples (read: pyramid scheme) that have made it into the multilevel marketing barrel.

Usually, these two are thought of as the same thing, but they're definitely not. Multilevel marketing is a legitimate social business model which aims to make the end consumers pay a lesser amount since labor and material costs - and essentially, the middlemen - are excluded from the whole deal. On the other hand, pyramid schemes are illegal and would probably land you a lawsuit in the end. These scams only want you to invest your money in them so that you would later get "rewards" for doing so, even though what you're actually doing is just transferring money from the "upline" to the "downline."

Too Good To Be True

It's likely to be a pyramid scheme if it's too good to be true. Multilevel marketing and pyramid schemes are often mixed up because the latter utilizes the same techniques as the former. The business model is designed in such a way that people end up thinking that it's the same as mlm marketing. In other words, they use deceit in putting up a network.

The similarities between the two are that you have to sell a product and create a "marketing network" while you're at it. Then there's the deal with the "upline" and "downline." You will either be sponsored by the "upline", or you get to sponsor a "downline." The advantage of the "upline" is that they get commissions from the "downline." The one idea that would lead you to think that you are in a lawful multilevel marketing venture is that getting commissions from your "downline" is just akin to getting bonuses, while most of your profits come from your own hard work.

Entering the Market

Multilevel marketing is a great business if you are the type who wants to work at home in your pajamas. It's also pretty easy to get into, even if you only have $29 as capital. It's very flexible, and you don't need to have a college degree to go for it, just a bit of computer knowledge.

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