Hi. I'm new here. I don't really know what this whole "talk" thing is all about, but I was told I should create a topic before making changes to a raionalwiki page. So here's the contribution I made. Discuss?
Multilevel Marketing - The Business Structure
The MLM business structure is most similar to that of a franchise, in that an individual can pay a startup fee to become an independent contractor for the brand company. Aside from being an independent contract, or business owner, representing the company and being able to sell the product or service themselves, the individual also has the opportunity to bringing other people into their team (downline) to do the same. The original person (upline) usually gets an override on the newer person's production, as well as the production on anybody they bring onboard. Because of this business structure, MLM companies have been largely (and incorrectly) confused with pyramid schemes. So what's the difference?
The main difference between a pyramid scheme and a MLM company is simple, pyramid schemes are illegal. Many MLM companies like Amway, Herbalife, and Melaleuca, are accredited by the Better Business Bureau and undergo stringent regulations from state and government entities to verify the legitimacy of the companies.
Another major difference is that in a legitimate MLM company, it should be possible to make a living in the company without having to recruit a single person.
As stated before, most MLM companies have a startup cost (usually no more than $100-$200), sometimes referred to as an "administration fee", a "startup cost", a "background check" or any other name, it's basically a one time cost to get the individual into the companies system and plugged into all the back office and support supplied by the company. This is another reason MLM are sometimes confused with pyramid schemes. However, unlike a pyramid schemes, in an MLM, the upline usually doesn't make any money off of a downline signing up, only the production the downline produces. So in MLM, it's essential to the success of everybody involved that the emphasis be on selling the goods or services provided. — Unsigned, by: Youlovedave / talk / contribs
- First of all, On talk pages, please sign your comments using four tildes (~~~~) or by clicking on the sign button: on the toolbar above the edit panel. You can also indent successive talk page comments using one more colon (:) for each line. Thank you..
- Second, there is a tab marked "Talk" on the article you are trying to edit. That is where discussions about that article go. The problem here is that