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Multi-level marketing is a tried and trusted way of making a massive income. When you present your business to potential distributors they may well ask is   MLM  a pyramid scheme? No  MLM  business is not a pyramid scheme and I’ll tell you why in this article. One thing we do know is that there are a number of  MLM  businesses out there which work. Many people have been signed up with them and are now making serious amounts of money.

Multi-level marketing or  MLM  is a modern day leveraging tool that can earn you a great income. The basics are simple, you have to promote the products and recruit people under you to help promote the products to their prospective customers.

Once you recruit other people to your business they become part of your downline. Your downline build their own businesses and you as the recruiter earn a percentage from their business. How much can you bank just by doing this? Is  MLM  a pyramid scheme or genuine?

Genuine  MLM  businesses put the emphasis on the product that the distributors are promoting. Promoting the product is the only way you can earn money through the business. There are good  MLM  Companies who are registered and their business plan is visible for all to see. This outlines the rules that govern their dealings.

Do research on any of the pyramid scams and you will find that their business plans are dubious and hugely exaggerated. The product is never that important to them. Their main concern is watching you increase their bank accounts. Some of these businesses shut down unexpectedly leaving their distributors stranded and possibly losing any money that they invested in the business.

My advice is to research first and establish if the  MLM  Company you are about to join is the real deal. But for some  MLM  companies you wouldn’t need to research that much. They have stood the test of time and they have hardworking distributors who get paid handsome bonuses as a reward for their endeavors.

Check out the companies first and see whether they are reputable. You may want to join a company where you can check their annual accounts. Consider a business where the company are listed on the stock exchange. My overriding view is that the company need products that everyone needs.

Once you have researched all the  MLM  businesses the genuine Companies will best answer your question; is  MLM  a pyramid scheme or not.

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Source by Robert S Bracey