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[kfree2006]

Legit Ladder or Not?

Home based MLM business has been around for decades. In fact, it's probably safe to say that virtually all MLM business is, or at least certainly can be, home based. That's often the beauty of the MLM industry and the primary intrigue for those who join an MLM as a distributor.

The first home based MLM business was Nutralite, which is now a subsidiary of Amway. Nutralite, founded in 1949 by Jay VanAndel and Rich DeVos, was the start of network marketing and the start of the food supplement and vitamin sales industry. In 1959, after long standing internal wrangling between the manufacturing subsidiary and the marketing folks, VanAndel and DeVos decided to create a whole new company as a resolution. This was how Amway, the first national home based MLM business, was formed.

Amway bought the Nutralite product and firm in 1969 and has long retained its title and largest MLM business in the world, home based or otherwise.

Viewing the Amway success, other home based MLM business ventures soon cropped up, including those not so reputable. A scam called the Ponzi scheme, actually developed back in the 1920's, was redesigned to look like an MLM but designed to deliver profit to only the designers and the con artists running the scam. This home based MLM business look alike came to be known as a pyramid scheme.

The basic difference between a legitimate home based MLM business - one that can and does actually reward every hardworking distributor with commissions on the products they sell - and a pyramid scheme is that there is a product that does pay profit to the seller. A pyramid scheme is solely about rewarding those at the top of the pyramid heap.

In a pyramid scheme, which, by the way, is illegal, the scammers lure others to join what they present as a legitimate home based MLM business by telling them of hefty profits quickly and ask that the victim and would-be distributor, send payment for the products to sell. In a true home based MLM business there is also typically an upfront cost for a sample box of products to start selling but those products are legitimate for sale products. In a pyramid scheme, what the would be entrepreneur gets for her or his payment, is the information on how to present other would be distributors with the lure of quick dollars, take their money and send them the very same instructions on luring others. There is no product in a pyramid scheme.

To find the best home based business ideas and
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Best Regards,

Kevin Freeman
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[annalaurab]

Thanks for posting such a clear explanation of the differences. As a MLMer this is a questions I get from time and time and your explanation of it makes a lot of sense.

[kfree2006]

Thank you I try to do the best that I can in helping someone.

[JoeyHewitt]

You are very right and thanks for the post. As I hear people slam MLM and call it a scam, I look at what they do. By the definition of the armchair quarterbacks, most Cooperate America jobs could be concidered pyramids. The US military would be considered a pyramid. Every business or company has someone at the top and then different levels of pay and responsiblity from there.

What I love about at LEGITIMATE MLM, I have the same opportunity as those above me. I can pass them and this is not always so with a JOB. When I see a legitimate MLM, I see opportunity. When I look at Cooperate America or Government bases jobs, I don't always see opportunity.

God Bless,
Joey

[swagen]

Hi Joey:

It comes down to what your comfort level is. For some people, they need the security of a job as opposed to the opportunity of MLM or any business for that matter. Of course today, what job (except for tenured teachers) is secure?

MLM is not for everybody and that's fine.

What I have a problem with is an MLM company that has no product at all. It's just sign up people and that's it.

[kfree2006]

Your right swagen.

[TimD]

What I have a problem with is an MLM company that has no product at all. It's just sign up people and that's it.

I agree, swagen, and it is because many companies have done this and other things that MLM is viewed as being tainted. This is why I always encourage anyone looking at an opportunity of any kind, MLM or not, do their due diligence.

If the company doesn't have a product to sell, focusing on recruiting there are immediate problems and they should be avoided. I would also caution people against a would be sponsor who talks almost to the exclusion of the products. The company may be wonderful but a sponsor that is looking only to recruit and not build a well rounded business isn't the best choice for a mentor.

[tech45]

It really comes down to what you like. Have fun doing it. We all make good and bad mistakes. We also are learning everyday.

Making a smart decision is good in MLM. Get yourself ready. The MLM business doesn't come easy. You have to work hard.

Its always room for improvement in the MLM business. Folks are thinking new ideas everyday. Be on top of your game.

[TimD]

Well said, tech45.