What Is MLM and Why Is It Different From a Pyramid Scheme?
Saturday, July 19th, 2008OK, before I start to answer the question, “What is MLM?” I need to define a few terms.
MLM is an acronym for Multi Level Marketing, and is a legal way of marketing products or services and earning a commission every time you, or someone you have referred, sells a product or refers a new marketer.
It’s also called affiliate marketing or network marketing, although there are subtle differences between the three.
A pyramid scheme involves no product and there is no legal marketing involved. It is purely exchange of money where the person at the top of the pyramid is supposed to make a profit. Pyramids usually collapse very quickly, and people at the bottom lose their money. They are illegal in most countries as far as I know.
Unfortunately, many people still distrust multi-level marketing or affiliate marketing because they associate them with pyramids. Even one of my own (free) affiliates emailed me the other day asking the question, “Isn’t this just a pyramid?”
I sighed inwardly, and then sent him a very nice email explaining the difference.
I also sent him to a website that explains all these definitions in full details and much better than I can in a short blog! The website is called FirstClassMLM and is run by Tim Sales. There is absolutely no hype on this website, and also no advertising or any call to sign-up with anything. It is purely informational and is full of excellent articles explaining all the questions you might have about mlms.
Here are some links to some relevant articles:
If you are interested in getting started in MLM, come back here after you’ve finished reading and have a look at my website for some opportunities.
If you want to find out more about MLM and affiliate marketing, I have given you some book suggestions below this post.
Thanks for reading.
Ros Bott
I am a career life coach and writer and I live in the UK, close to the historic town of Stratford-upon-Avon.
I have found that affiliate marketing and the personal development industry are extremely strongly linked, which is why I have added a motivational flavour to my website 
