Are MLMs Actually Promising Businesses or Greedy Schemes?

What is an MLM?

MLM stands for Multi-Level Marketing and it works as follows.

Someone starts a company and needs a way to promote that business. The owner can spend lots of money getting celebrity endorsements and prime time commercial spots or they can set up an MLM.

So they choose to market their business with an MLM strategy and they send out the idea to a bunch of people who would be interested in their business. Those people get invite codes to bring in more people.

You get invited to be apart of an MLM, you also get an invite code and are able to recruit more people. Every person you recruit helps your chances of making more money than before.

This is due to a ladder effect when it comes to sales; for every sale you generate you may get 40% of the profit. If one of your recruits makes a sale you may be 10% of that profit, and 5% of their recruits, and so one until the percentage is too small to calculate.

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