Garth, you touch an interesting point.
If you do an online MLM where you sign up and get our own unique link, like for example BeMotivatedToday, and you promote your link it is in fact nothing different from an affiliate program.
The only difference there is, is that with an online MLM the company split the commission between a number of people (9 in above example) instead of giving it to one person.
But what always amazes me is the point you mentioned. The moment you ad more levels people put on their eye caps, jump up and down, scream pyramid pyramid without even knowing what a pyramid is.
In my opinion an online MLM that works this way is nothing else than a multi tiered affiliate program.
(By the way, the owner of BeMotivatedToday do not like to call his business a MLM, he says it is a multi tiered affiliate program and not a MLM, I agree with him)
I have even seen people frown upon a 2 tier affiliate program. I cannot understand why it is so hard for people to accept that it is OK for them to make money from other people's efforts.
Talking about the guy at the top getting the most money, this is also a very good excuse people always use not to get involved in MLM.
Have you ever concidered any big stable well run company.
We can call the company in our example Pick & Pay, Vodacom, whateveryouwant, etc.
At the top we have the CEO, then we have the directors like the marketing, financial, etc directors. Then perhaps your provincial managers, followed by your store managers, followed by the floor managers followed by the people who is actually doing the job, the workers. So can you see that we have a perfect 6 levels pyramid scheme. Now, who is doing most of the work? Level 6 of course, the workers. BUT, who is earing the most money? The guy at the top of course! So is this illegal? We have a pyramid structure AND the guy at the top earns the most?
If people remove their eye caps and stop listening to their neighbours, brother, mother in-law, etc there can be much more wealthy people in this country.
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