All distributors have that possibility to recruit more distributors, then you have the opportunity to create a large network of distributors. For example, if you recruits to a dealer, he would be your 1st level (son), when it recruited to another, this would be your 2nd level (grandson). When someone from your 2nd tier recruits another distributor, this new Distributor would be your 3rd level (great-grandson). That gives you the possibility to the Distributor receiving commissions for sales of various levels of distributors. For example, if someone has a network of 500 dealers and earn on average $ 10 per month for each distributor sales, you can give an idea of the revenue potential of this type of business and why many are so attractive. Is MLM a pyramid scam? That is recruited other distributors in the multilevel does not mean to be a pyramid scam. The small but great difference between MLM elMarketing (or Network Marketing) and pyramid scams (according to the FTC) is the exchange of a real product. * FTC: Federal Trade Commission (or Federal Trade Commission of the USA) * to difference of a pyramid, in a MLM if you patrocinas me, I’m wanting to buy a few $ 500 of products to test them, see if you like me and see if I want to promote them.
Therefore, the MLM is not a pyramid scam, provided it is a real product/service. The best way to know if it is a real product is ask yourself: do you like products?, you use them even if you were not involved in the business? This is going to be hard for some entrepreneurs of the multilevel but if you would not buy the product in the event that you were not in the business, then do that business. This is a trite phrase, but to give you success in MLM it is better to be a product of the product.