Multilevel marketing is quite different from traditional businesses. Here members pump in money, promote business and buy products but only to get a small share of money, he and his down line members bring in. The members in this unique business model play all the roles i.e., as investors, employees and customers. The interest of the members is not safeguarded and there is no exit option, except by loosing the money that has been invested towards franchisee/membership.
The multilevel marketing firms are banned in most of the countries. But the loopholes in the Indian legal policies, which are made to control the business of such companies, provide them a perfect ground to nurture and flourish. Newspapers have regular concealed ads to lure people into it till they go through the experience and realise the truth of such additional five figure income attractions. If statistics are compiled it would be beyond imagination to realise how many have contributed a small amount to make millions and billions for others through this system.
Multilevel marketing plans are ways of selling goods or services through distributors. These plans typically promise that if you sign up as a distributor, you will receive commissions - for both your sales of the company’s products or services and for the other people you recruit or lure to join the chain of distributors. Multilevel marketing plans usually promise to pay commissions through two or more levels of recruits, known as the distributor’s down-line.
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