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INTRODUCTION
THE NEXT LEVEL
THE LEGAL POSITION
THE POSITIVE ASPECT
THE KLEENEZE OPPORTUNITY
CHANGES INTERNATIONAL
TELECOM PLUS

REFERENCE BOOKS

A FEW SUGGESTED TITLES TO EXPAND YOUR KNOWLEDGE OF MLM

LINKS

LINKS TO OTHER SITES FEATURING INFORMATION ON MLM (USA SITES)

In my involvement in the field of home business, I have yet to encounter an activity with such polarized views as Multi-level Marketing.

People seem to be either enthusiastically for it, or diametrically opposed; there is no middle ground. At least that's the impression I get from reading up on the subject.

'The mathematics don't work out,' say some of the so-called experts in the opposition camp. 'There aren't enough people in the world,' or 'The market would soon saturate,' say others. And their colleagues nod their heads sagely in agreement. It's like the bumblebee that - according to scientific principles - can't fly because of its impossibly imbalanced power-to-weight ratio.

Until some little guy - or gal - in the corner stands up and says: 'Eh, excuse me, I made a hundred grand doing it last year,' as they wave a copy of their accountant's corroborating statement above their head - trying to knock that pesky, buzzing, black and yellow striped insect out of the sky!

Multi-level Marketing (MLM), or as it's otherwise known Network Marketing (or just Networking), is merely a way of selling a product by non-traditional means. The 'product' in question could be literally anything from household goods to health supplements, jewellery to business manuals. Where it departs from the accepted norm is that rather than employ the usual trickle-down setup of manufacturer-to-wholesaler-to-retailer-to-consumer, with the associated costs: advertising; salaries; premises; stock; overheads, etc., the manufacturer engages independent distributors who supply direct to the customer.

Cutting out most of those stages that comprise the conventional model, enables the manufacturer to offer a more attractive remuneration package to the distributor, who is self-employed and entirely responsible for the promotion and operation of their independent 'leg' of the business.

Another major benefit of critical importance is, of course, that the customer is able to purchase the product at a more attractive price than usual - and, as an added bonus, the goods are delivered direct to their door.

So far the model is not that far removed from conventional thinking; after all market traders do much the same thing in any given week (except for the home delivery). Where MLM finally parts company, however, is in the way the business is expanded - and that's where the controversy begins!

The next level.
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In addition to the income earned from retailing product to customers, the real opportunity to make the quantum leap to the next lucrative level lies in the introduction of other distributors to the business, who then become part of your 'downline', which in turn qualifies you for bonuses based upon the terms of whatever payment structure is in force. The distributors that you - the 'upline' - sponsor, eventually develop their own downlines and you - as their upline - continue to qualify for percentage payments at each descending stage down to an agreed level, usually the fifth - hence the 'multi-level' bit. Don't worry, it's not as complicated as I've managed to make it look in the preceding sentence.

In strictly theoretical terms, Multi-level marketing is based on sound mathematical principles: If you, as an individual, introduce let's say only five people to your Opportunity of choice and they in turn introduce five each - and this continues to the fifth level - there will be a total of 3906 distributors in your network!

All working for you, the original sponsor!

That's the theory anyway and, I suppose if we were only talking pure mathematics and each stage of the infrastructure continued uninterrupted to its conclusion for every distributor in every MLM program, then the market would indeed saturate; there would not be enough people in the world. And wouldn't the theorists be smugly satisfied then? But, of course, we're not just talking multiplication tables; we're talking multiplication tables under the influence of people - and, as we well know, that's a different ball game entirely!

The legal position.
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It must be emphasized here that there is absolutely nothing unethical or unlawful about this paradigm and the opportunity most certainly does exist for some determined people who work hard at their business to earn considerable - even exceptional - sums. Please note, however, the emphasis on the words, 'work hard' in the previous sentence. Anyone looking to get rich in a hurry in MLM is absolutely wasting their time! ( I personally believe that anyone looking to get rich in a hurry in ANY legal activity is absolutely wasting their time.)

Later on, you will read a few success stories of people who make their living running an MLM business. Regardless of their background, geographical location or the time it has taken them to achieve their level of success, they have the following things in common: enthusiastic commitment to their business... and a willingness to work hard to establish their position.

It's not all good news, though. MLM carries a lot of baggage, leftovers from its early development when it gained notoriety as Pyramid Selling.

Any activity which involves money changing hands is open to abuse by the unscrupulous and MLM is no exception. In earlier days it was an area of rich pickings for the villains who adapted the multi-level principle to their own ends and severely tarnished its reputation in pursuit of a fast buck, a stigma which persists in many quarters to this day. Ever received an invitation to join a chain letter? Send five people on a list a fiver and in a few weeks you'll get thousands? Just one of the many scams enjoying a new lease of life on the Internet with a whole new audience of potential mugs. It also uses the multi-level principle, but in this case, illegally!

Some over-enthusiatic distributors have been have been known to - shall we say - exaggerate not only the potential earnings of their scheme, but also the length of time it takes to be successful (I'm being diplomatic, here). Among other stipulations, the Trading Schemes Regulations of 1997 require advertisements aimed at recruiting new distributors to include the following wording, which applies to flyers, billboard advertising and audio or video tapes, but excludes newspapers, magazines or radio and television broadcasts:

"It is illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join a scheme. Do not be misled by claims that high earnings are easily achieved."

Now, to the neutral observer (me), this script seems to be about as effective as a rubber vaulting pole - and here's why. Okay, granted the second sentence is needed to handle the exaggeration part mentioned above, but the first bit strikes me as being just gobbledegook. The most attractive feature of ANY Multi-level scheme - the bit about benefits from recruiting others - is surely what persuades most people to sign up in the first place!

Come to think of it, though, 'Smoking kills!' on the side of fag packets has roughly the same effect.

The positive aspect.
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As the prime objective of this report is to offer assistance to those seeking genuine business opportunities, we will be concentrating mainly on the positive side from now on. There is a wealth of information about every aspect of MLM available, both on and off the 'net. So much so, that I could easily have spent weeks more than I did just reading up on this absorbing subject. For those of you who wish to investigate further before committing yourself, I have included some suggested reading material and several links to sites featuring information about the various facets of the business.

REFERENCE BOOKS
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Here are just a few titles of the many books on MLM, which you may find useful - the ones I have read so far certainly opened my eyes. Let me know of any you have read and would recommend for addition to the list. For pricing and delivery information, click on any of the titles underneath.

Multi-level marketing.

Network and Multi-level marketing.

LINKS TO OTHER SITES
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Now some American based sites that feature at least some aspects of MLM, mostly the darker side I regret to say. I have chosen these because I personally find them not only informative but extremely entertaining. Please feel free to suggest any which you find and think would make good additions.

The Cagey Consumer has a wide selection of articles on MLM and links to other sites.

The Sceptic's Dictionary reports on just about any subject you care to mention. Click on the link to go direct to their MLM section. Don't get lost!

The Worldwide Scam Network is graphically intensive but be patient, it's well worth the wait.

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DISCLAIMER: BIZ-BANANA.COM accepts no responsibility for the contents, or consequences arising from the purchase of any business start-up kit or other product by any individual. Any opinions expressed are merely those of the author of the report and should therefore be construed as such.

As ever, we recommend that that you seek professional guidance before undertaking any new business venture. Do not assume that claims of potential earnings are genuine without corroborative evidence from a verifiable source.

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