The network marketing industry, also known as multi
level marketing (MLM), has become one of the major
controversies in the business world. Both advocates
and detractors have used strong arguments
defending their view.

The detractors have condemned MLM as a scam
because the system falsely claims instant riches with
less effort based on a "pyramid" marketing scheme
that expands a business improperly by promoting too
much hype and misleading facts.

They also note that 95% of the MLM business
opportunities fail, with supporting evidence. There
are huge profits involved only for the top performers
and not for the vast majority of the distributors.

The proponents of multi level marketing insist that it
is one of the best business models to create wealth
without investing large capital and on a short term
basis. On the other hand, they also note that it
requires a lot of effort and it is not a "get rich quick
scheme", pointing out that this approach to marketing
has been taught as a mainstream course in
universities.

Although it is not common, if ever, to find this type of
course officially given in Ivy League schools, a
similar course at the University of Illinois at Chicago
does exist
(http://www.uic.edu/depts/oee/networkmarketing/inde
x.html ).

The proponents of MLM support their arguments by
claiming that there are many cases of people who
succeeded in the MLM industry with a small amount
of start-up capital and only by following a specific
plan put forth by the original company. They also
differentiate the MLM from "pyramid schemes"
because the first contains a product or service with a
legitimate company which supports it.

On the other hand "pyramid schemes" contain no
products or services, or they include "pseudo
products" in order to justify the existence of the
"opportunity"

Another argument against MLM is the bogus claim of
duplication. Nothing can be duplicated since every
individual is unique and, under no circumstances,
are we all capable of becoming top salesmen or
developers of down-line, i.e. MLM marketers
recruited as salesman, referred to as "independent
business owners". Actually, a charismatic salesman
in the network in this scenario rises in the ranks of the
pyramid by earning money from these new recruit's
hard work.

The MLM advocates that duplication is possible only
when the marketing plan and the tools have been
advanced by the mother company in order to be
duplicable for the majority of the distributors. This
implies that whenever the mother MLM company is
in a position to provide such a tool, then ordinary
people with little to none marketing background can
copy the marketing techniques and tools and
promote their MLM opportunity successfully.

Another downside of MLM is the exploitation of our
relatives urging them to join our MLM opportunity
which oftentimes stresses family relationships
unnecessarily and is considered by many to be a
dubious marketing tactic.

Some proponents may counter that there is no need
to beg your relatives for sales; instead, what you
need is qualified prospects who are interested in your
offer. That can be accomplished by purchased
targeted leads or specific advertising methods.

The list could go on. Maybe not even an exhaustive
book would be enough to note all the arguments both
sides deploy. Maybe the problem is the conundrum
itself, in which we have to choose between
demonizing or canonizing the MLM industry. Since
nothing can be duplicated, everything boils down to
how the individual marketer presents his material to
his prospects. Therefore, one can conclude the MLM
system is good for some and not for others, so there
is no need to disparage it or support it in the first
place as a third party observer.

In that way of thinking we will not find answers. Only
detailed consideration of each and every MLM
company would lead to more accurate conclusions
and that means thorough examination of the
products or services, the marketing and
compensation plan, the marketing tools , and of
course the company's support and background.

Christos Varsamis is the creator of fastprofitbiz.com. He’s been involved in the Network marketing industry since 1998. Get Free access to latest information about and MLM Business Opportunities , and Residual Income Business .