Affandi Hamzah  
There is hot debate on the internet over whether "multi level marketing is scam or not?"  There are various online gurus who claim it to be absolutely fine, but on the other side there are some who point out lots of holes in this type of set up.  There are numerous blogs "for" as well as "against" multi level marketing all over the internet.

I personally feel that anything should be thoroughly analyzed before giving verdict on it. Let's try to find out "what's up with multi level marketing?"

Multi level marketing, also nkown as network marketing, is a business arrangement which combines direct marketing with franchising.  A typical MLM set up involves affiliating the individuals with a parent company as independent contractors. They are paid according to their sales of products or the sales achieved because of them.

A commission in a legitimate multi level marketing company is only earned on the sale of products or services to the end consumer that in most of the cases is also a distributor.  It does not require any extra money for things like sign up fees or recruiting fees.  There are many MLM compensation plans designed by numerous companies. 

Some of the most widely known multi level marketing schemes include Unilevel or Stairstep Breakaway Plans, Baseshop Overrides, Generational Overrides, Executive Bonuses, Matrix Plans, Binary Plans, Elevator or Matrix Schemes etc.

Legitimate MLM companies offer countless opportunities, but nevertheless this type of business has always been under fire.  It's greatly condemned because of its image problem created by the growth of various illegal schemes associated with multi level marketing on internet. 

Illegal pyramid schemes and ponzi schemes have greatly contributed to the infamy of multi level marketing.  It's become extremely difficult to differentiate legitimate MLMs from these illegal schemes.

Amway, one of the most famous MLM structured companies, was greatly criticized for collecting revenues from selling instructional and motivational materials to its participants.  In 1976, the FTC filed a lawsuit against Amway, but Amway's victory opened the gates for many companies to adopt a multi-level distribution system.

It's generally assumed that most multi level marketing plans are fraudulent scams and are illegal.  Fraudulent MLMs urge participants to buy expensive inventories of their products.  The program then often tumbles down because the products don't sell and the member is only left short on cash and with a useless product.

Critics of multi level marketing criticize many of these companies for collecting revenues primarily by enrolling new members, instead of selling their products.

However, multi level marketing is a highly flourishing business regardless of some glitches here and there.  It is booming legitimately in over more than 100 other countries and all fifty states of the U.S.  New MLM businesses/networks have smartly avoided using terms such as "multi level marketing" or "network marketing" because of their image problem.  Instead they use terms such as affiliate marketing, home based business franchising etc.

But the bottom line for me is that I don't want to profit by strong arming my friends and relatives into buying products from me they really don't want or need.

Recently I've been working with a tried and tested business opportunity that's really made a difference in my financial life. It's probably like nothing you've ever heard of before and it may surprise you to see just how easily it'll help you create personal wealth.
Aug 14th 2009 05:13