Multi-level marketing have revolutionized the world of scam businesses. Unfortunately, while several legitimate multi-level marketing companies exist, the bad ones, the illegal ones, the ones that suck the money from the average working Joe make the news. As a result, consumers and sales people alike need to understand the terminology involved in such financially draining scams. One such term is whenever a company refers to the MLM downline builder.
The typical MLM Company starts out with one person who sells a product. That individual not only sells a product, however, but he also sells a portion of his business to others willing to sell the product. In turn, a portion of their profits goes to him because he allows them to sell under him. These new sales people can do the same to their friends, families, and neighbors by having others sell under them. This line of people is what MLM companies refer to as the downline. Those who earn money selling the products will become the downline for the salesman-turned-manager at the top who now simply manages his sales people, encouraging them to sell, because when they do, he turns a profit. He no longer sells, but instead he sits back in his pool, sipping his drink, and dreams of living the good life thanks to the minions working around him.
The MLM downline builder, then, becomes the method by which our original sales person obtains his efficient downline. He can do so in a number of both ethical and unethical ways. The ethical method would require him to work more in the end. The ethical method would mean that instead of simply sponging money off his sales people, he continues to sell the product, which he so fully believed in initially. The unethical methods include explaining the sales technique and product and then letting the sales people take over his clients, who once trusted him, and just living the good life in the backyard pool.
As stated earlier, not all MLM companies cause this much grief. Some are legitimate businesses, but in order to distinguish the dirty MLM downline builder from the clean one, a person must simply look at one thing. Are the guys at the top still selling their products? Do they still believe in them? Do they even use them? If so, then the business might just be a legitimate one. Otherwise, sales men beware, because you might just find yourself scammed.
