MLM Multi-Level Marketing

Some criteria to evaluate the quality of a MLM system: Dreams and the truth about the downline development. The difference between MLM and a pyramide game

Find out the ratio between the end user price and the kickback to the network.
This ratio should be in the range of normal advertising output.

Above 30% kickback to the network, You should start to distrust.
Above 80% kickback to the network, You should call the scam a pyramid game.

All the kickback to the network has to be paied by the last user.
If the kickback is high, this adds to the price of the product.
If the kickback is higher than the normal output for advertising,
than the prices will be to high for normal last users.

For example D.I.R.E.CT. pays a maximum of 3%.
In a travel for 1000.-DM are maximal 30.-DM kickback. This is a good ratio.
If the kickback would be 50%, the end user price would be 1940.-DM
instead of 1000.-DM and nobody would buy.


Downline development: the dreams and the truth

All the dreams sounds like: You have 4 level 1 downlines, every level 1 downline has 4 Level 2 downlines and every level 2 downline has 4 level 3 downlines.

1 -> 4 -> 16 -> 64 -> 256

This numbers gives You all the dreams of becoming a millionaire. My experience with Internet MLM is much different from this dreams:

I have a lot of level 1 downlines. About 25% of my level 1 downlines creates a level 2 downline. About 25% of my level 2 downlines creates a level 3 downline.

256 -> 64 -> 16 -> 4 -> 1

Sorry, this pattern is the truth and lucks much different from the dreams. If You have a strong web site, You can make some money with MLM. But it is better You see it like normal advertising. You show the banner of a MLM system to 1000 visitors of Your page and this creates an income from $nn. Be very happy about per 1000 exposures, because this is much more than at normal banner advertising.

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