How MLM Really Works?

Please understand what is MLM first before continue reading this post. http://prevalentco.blogspot.com/2007/03/mlm-again.html

Like I said it the last post(http://prevalentco.blogspot.com/2007/03/mlm-again.html), MLM is not a scam, in reality the way people use it makes it looks like scamming. Hmm, although there is some facts that I see makes me not to think of it that way.

Ok I will tell you the reason before I give you the conclusion. Whenever the recruiter( I call it recruiter because they focus on recruiting more than selling) talks to you, they do offer you the membership AND THE PRODUCTS. My conclusion is that it is a trick which blind those people who didn't see the catch behind it. They trick people by using the franchising term, they adapt and come out a new plan....

Although you may not realise this before but as you can see they do sell you something in the end right? The amount you paid for the membership is equivalent to the product value that you obtained. Can you say that is a scam? You have the product and the membership for just paying a one-time fee. Then you can recruit again, by doing the same process next your downline doing the same and you get the commissions.....the cycle goes on and on and on....

Now what is the catch behind it?

If you can't see this, then the money or return on investment(ROI) has already blinded you. Because every membership fee you paid is for the product! Now you had the product which I had stated in the last paragraph "The amount you paid for the membership is equivalent to the product value". And you do the so called "recruiting" when you are selling the product. Do you see it now? You told them the so call business but the reality is that you are selling the product. Not many realise this I believe. Because they gives you the commission and the product and the membership. To gain commission, you need to have that membership....

Now the company earn from the sales of the product, instead of the membership this is how recent MLM works. You pay the so call business, but in reality you are buying the product then you do the same process to your friends or peers. Your peers become your downline, you get a small portion of the sales profit. Then the rest goes to the company, then the company pays your upline a small portion of what you earn, not by taking your income.

After that, you will be ranked to some position because you had achieve to a particular target or goal that is set by the company before they give you the rank. Why must this happen? Any idea, because this is really pretty obvious. =) See the answer in the next paragraph.







Until the next post =P I will tell you what is the catch behind the ranking..... So be patient. Bye now!