Profit Masters


MLM and Profit Masters.

Multi-level marketing (MLM) is sometimes called network marketing (NM) or matrix marketing. It is a business model using a combination of direct marketing and franchising. Typically, independent business owners (IBOs) associate with a parent company. This is a contractor-like relationship. profit masters

IBOs.

IBOs earn income for:
  • shopping within their own business;
  • selling products; and,
  • expanding their network of people ("downline") doing the same.
IBOs receive a percentage of the profits. These are generated from their network of IBOs, who they introduced to the system. In addition, there are profits generated by people subsequently introduced by the previous IBOs, and so on. Often, there are rewards. This is tracked using a points system. The points represent product volume sold through the IBO network.

Image.

There is a recognized image problem, for multi-level marketing. This is due to difficulties clearly distinguishing between legitimate network marketing and illegal "pyramid schemes", or Ponzi schemes. Regardless, many NM/MLM businesses operate legally, in all fifty U.S. states, and more than 100 foreign countries.

For legitimate MLM companies, commissions are earned only on the sale of products or services, to the end consumer. In many cases, this is a distributor. No money is earned for "sign-up fees" or recruiting, alone.

Legal precedent.

Critics believe some companies produce revenue primarily from new participants. This contrasts with selling products. Amway distributors (the leading company in network marketing, in the world, with annual revenues exceeding USD $1 billion) have often received criticism. They generate considerable revenue from selling instructional, and motivational, materials to its participants.

The FTC filed suit against Amway, in 1976 (FTC vs. Amway). However, it lost the case. This paved the way for many companies to adopt multi-level distribution systems. profit masters

EPI.

Personally, EPI did not look like the best choice for a few reasons. It is true, people are making money there. However, it doesn't seem to be a business on which to base my future success.

Most of the time, automation is a great. But, the idea someone earns hundreds of thousands of dollars by sending people to watch a movie -- while never developing any personal skills -- is not for me.

Some reps in EPI, not all, seem to prospect this way. They imply this kind of income is all about "no skills required, anyone can do this, easy to do" and so on.

This is a reflection of many people in EPI. However, it does not necessarily reflect the company itself. But, like Amway/Quixtar, the company catches the blame for what the reps do. profit masters



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