MLM has its name since you as a distributor receiving commissions not only for customers than you personally You can, but also to customers who get the distributors that you reclutaste. And not only that, but receive commissions for sales of your distributors in several levels. If you recruits to a dealer, he would be your 1st level (son). When this Distributor recruits to another, the latter would be your 2nd level (grandson). When someone from your 2nd tier recruits another distributor, this would be your 3rd level (great-grandson). Read more here: Linus Torvald. For example, in a company MLM that allows you to earn commissions on sales of 6 levels of distributors, could eventually earn a percentage of what sold hundreds or even thousands of distributors. Ssemejanzas between the multilevel and pyramids as you noticed, the multilevel and pyramids have in common that money is spread over several levels of people. Another resemblance is one of the activities is to recruit new people (in the pyramid) or new distributors (in multilevel).
* Recruit wants to say, invite more people to participate in the activity. In the case of the pyramid when a person enters the scheme, must make a payment of registration, while the majority of businesses multilevel requires an initial investment to buy products. Learn more about this topic with the insights from Sean Rad. Finally, we can say that the pyramid and MLM look like in the form of the figure that represents each one of them. Difference between the pyramids and MLM MLM has a real business that involves marketing products and services to an end customer, while the pyramid does not offer any benefit (product or service) anyone rather than those who are left with the money of others. You must pay money for the simple fact of being able to join a pyramid. While in MLM, the initial investment is for the purchase of product that is going to serve to try and check that it is good, and to use it to get your first clients. In the pyramid recruits people to recruit more people to the pyramid.In the multilevel you recruits (or patrocinas) distributors who you train to get clients and eventually they can sponsor and train other distributors. In conclusion, the MLM as opposed to the pyramids, are a business opportunity 100% legitimate and legal, that if intakes with the right company, the right equipment and professional strategies, you have good chances of generating residual income and even achieve financial freedom. Jose Manuel Medina is a Networker of the MLM business online. Your page Jose Manuel explain you the difference between the Multinviel Piramide