MLM Directory

What are the differences between Traditional business and MLM business?

Public Comments

1. tradional have more of a rep mlm dont
2. Unlike traditional business MLM (Multi Level Marketing), is to some extent a ponzi scheme. I relies on people hiring several other people who hire several people etc. etc. so its the same as affiliates on pay to click sites. The early people in the scheme do well, but later on it becomes more difficult to recruit and keep the people you have under you. Many people seem to think this started with the internet but there were many fabous MLM schemes back in the 60's and 70's probably the most well known was Golden Products who were selling Miracle detergents and cleaners. Eventually many people lost a lot of money.
3. Traditional business: - Large start-up cost, employee hassles, collections/Inventory - Customer/employee theft, franchise fees/royalties - Competition/limited markets - Special skill training, permits/licenses/insurance etc. - Specialised equipment MLM business: - Very low start-up costs - Daily, weekly and monthly cash flow options - No employees, No collections - No theft, no franchise fees, no special skills, no special permits - No manufacturing - Tremendous tax advantages and tax write-offs - Co-operation instead of competition - Unlimited international markets