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Not knowing the difference can land YOU in prison! MLM: What is it? The simplest definition of MLM is that it employs a multilevel commission structure in paying its sales force so that salespeople receive not just commissions for their own sales but also commission.

Such legal notations here should not be interpreted as being all-inclusive; I've quot;d only enough to make my arguments. Nothing on this site should be construed as taking the place of the advice of an attorney. It is up to you to do your own.

The theft was justified as the salesman's compensation for training more "successful" salespeople, but whether he knew it or not, all he was doing was training more dupes to perpetuate the fraud. To set the scheme in motion, the MLM needed only falsely overhype the.



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Let's look at a sample 7-layer deep binary MLM's compensation structure with a total market of 17 buyers, i.e. legitimate retail customers that will ever buy this product. First, note that the one salesperson on Level 1 could likely have sold to all 17 retail.

It remains to be seen if the second case actually materializes given it's a virtual carbon copy of the first. Introduction If you've found this website, you were probably researching one of the companies in the margins of this page, seeking reassurance that they're not.

Here is a sample chart that sums up concepts new recruits would learn as part of their introduction: According to the MLM/promoter, each recruit is his own L1 business, the product is unique and in high demand, and the figures above are simply the result of "duplica).


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