Multi Level Marketing (MLM) The Pyramid myth and other misunderstandings
By Ted Nuyten - The Netherlands - www.businessforhome
Is MLM or Network marketing a Scam?
Madoff
By Ted Nuyten - The Netherlands - www.businessforhome
Short answer .. If MLM or Network Marketing is a pyramid scam, 67 million people worldwide, would be in prison ‌.
By Ted Nuyten - The Netherlands - www.businessforhome
Long answer! Network marketing and Multi Level compensation plans were declared legal ways of compensation over 50 years ago:
By Ted Nuyten - The Netherlands - www.businessforhome
Direct Selling Organisation (DSA)
•67 million Direct Sellers •95% has a MLM compensation plan •$110 billion revenue worldwide
By Ted Nuyten - The Netherlands - www.businessforhome
Direct Selling Supporters • Bill Clinton - Former USA President • Tony Blair – Former UK Prime Minister • Michael Gorbatsjov – Former USSR President
By Ted Nuyten - The Netherlands - www.businessforhome
DSA Facts & Figures • USA is the largest market, 15 million distributors, $30 billion revenue Country
Year
Revenue
Distributors
United States
2007
$30 billion
15,100,000
Japan
2006
$20 billion
2,700,000
Brazil
2008
$10 billion
2,200,000
South Korea
2007
$9 billion
3,187,933
Germany
2007
$9 billion
778,000
Mexico
2007
$4 billion
1,900,000
United Kingdom
2007
$4 billion
419,500
By Ted Nuyten - The Netherlands - www.businessforhome
Misunderstanding: “Only the top make money” • There are numerous examples of distributors who make
money earlier…
more
then people who joined
By Ted Nuyten - The Netherlands - www.businessforhome
Why? If it would be not possible to earn more then your up-line, nobody would join an opportunity‌.
By Ted Nuyten - The Netherlands - www.businessforhome
An other way to explain this misunderstanding If you introduce a “Top Earner” you could make a small fortune.. The “Top Earner” will earn more, but you can receive a % over his or her earnings.
By Ted Nuyten - The Netherlands - www.businessforhome
Misunderstanding: “You have to be broke to start” • Some people are broke, however people from all walk of life join Direct Selling • Millionaires, Actors, Doctors, business men, stay home moms and many others..
• The start up costs are often between $25- $500, a small Ted start Nuyten - The investmentByto a Netherlands great - www.businessforhome
Fact: The average Top Earner Income
The average Top Earner make approx. $ 25.000 a month / $ 300,000 a year. There are over 5,600 people who make a full time year income ($60.000+) with Direct Selling Source: www.businessforhome.org
By Ted Nuyten - The Netherlands - www.businessforhome
Fact: Newbies often introduce Top Earners The majority of Top Earners are introduced by rookies. People with no experience in direct selling!
By Ted Nuyten - The Netherlands - www.businessforhome
Where is the money coming from?
The majority of the revenue in Direct Selling (80%+) is coming from customer orders. People who only want the product. It’s obvious that a customer will not be rewarded as a networker. Customer revenue is put into a “networkers pool” and is rewarded to networkers who build up an Direct Selling organization.
By Ted Nuyten - The Netherlands - www.businessforhome
A few MLM Celibrities‌. AC Milan, Boston Red Sox, Phoenix Suns, Inter Milan, and many more endorse MLM products
By Ted Nuyten - The Netherlands - www.businessforhome
Success!
By Ted Nuyten - The Netherlands - www.businessforhome