Multi-Level Marketing: The Pros and Cons of Different Types of Companies
There are many different types of Multi-Level Marketing (MLM) companies. Some are more reputable than others, and some have been known to scam people out of their hard-earned money. Also read: Wink Naturals review
Pyramid Schemes – These are the most notorious types of MLM companies and are illegal in many parts of the world. Typically, pyramid schemes promise participants huge returns with little to no effort. They are often fraudulent and require participants to purchase an expensive starter pack or make a significant initial investment before they can start making money.
Pyramid Selling – This type of MLM is similar to a pyramid scheme but involves participants selling products rather than recruiting others into the company. While this type of company can be legitimate such as Wink Naturals review, many are actually pyramid schemes in disguise and should be avoided.
Party Plan Companies – Unlike other types of MLM companies, party plan companies focus on the sale of products rather than recruitment. Participants join a “party”, where they can purchase or sell products directly to customers. These companies are often considered legitimate and can be a great option for those looking to make money without recruiting others into their network.
Network Marketing Companies – Also known as direct selling, these are the most traditional type of MLM companies. Participants join a network and sell products to their friends, family and acquaintances. These companies can be legitimate, but they often require participants to purchase an expensive starter pack before they can start making money.