Top 7 Fallacies About Online Multi-Level Marketing

Much has been said about multi-level marketing(MLM). While a lot of people claim that it is a marvelous way to earn an income, an equal number of people condemn it. Most of the reasons are borne from fears people have with something as seemingly novel as online MLM programs.

Which of these fears are true, and which are false? A closer study on some of the issues raised against online MLM programs will reveal the truth behind the subject.

1. Online MLM is a “get rich quick” scheme. False. You will need to invest some time and effort to achieve the highest possible success in this field. With online MLM, you will not gain a large passive income immediately. To accomplish this, you will need to develop your network and fill it up with dedicated individuals whose efforts will earn for you the lower tiered commissions.
   
   
2. Online MLM is a pyramid scheme. False. Real online MLM is a creative kind of direct selling. Basically, a person is a customer of the MLM program. Unlike other setups, he is given the opportunity to earn because of his purchases and the purchases of his customers.
   
   
3. Online MLM is illegal. False. If online MLM is illegal, direct selling should likewise be considered as unlawful. Online MLM, after all, is a form of direct selling by its very nature.
   
   
4. Online MLM is just as unstable as any pyramid scheme. False. Pyramid schemes fail because they don’t have capital to rely on. They depend on the money they derive from the multi-tiered “investors.” Online MLM is based on consumable real products that are actually sold to consumers. There is a real economy involved, hence ensuring the strength of the legs that support this kind of system.
   
   
5. Online MLM requires steep financial investments. This is partly true, though the adjective “steep” is quite relative, as well as questionable. You will have to purchase a package prepared by the MLM program. This is a condition precedent to the earning opportunities that you will gain access to. Consider it as your enrollment fee. The price of these packages vary, nonetheless, it’s usually a onetime fee which you are sure to recoup after referring three or more sales.
   
   
6. Online MLM is just a fad. False. Multi-level marketing has been practiced by many enterprises since the 60’s. With the advent of the internet, an online variety has become the logical evolution of this strategy. Surely, something that has become a popular sales technique for such a long time cannot be considered as a mere fad.
   
   
7. Online MLM programs are scams. Though some fraudulent companies use MLM programs to hide their devious schemes, most MLM programs are legit. The responsibility to determine credible MLM programs from dishonest ones would lie on the shoulders of the enrollee. Due diligence is required before committing to any undertaking, after all.

Robert Paul Williams is the Editor of Work At Home Business Website. Come Browse Our Free Article Library. Stay Informed with the Latest Legitimate Home Based Business News, Success Tips & Strategies.