What is multi-level marketing

Multi-level marketing is often also referred to as a pyramid scheme. It is essentially where most of some one’s sales are done through others and not directly from themselves. For example, companies like Avon use reps to market and sell their products for them and make the majority of their money this way. Some of these types of companies are well recognised brands and others are often seen as a bit of a scam. The issue is that often people are asked to buy in to these schemes by putting gup money as capital or buying a certain amount of the products to sell. It may be that you cannot sell the products and you are then left with them out of pocket.

During the recent Covid outbreak there have been more and ore people turning to this type of marketing. With many of us having to work from home, people are taking advantage of business that they can fit in around their lifestyle and sell from the comfort of their own home. This has caused a bit of a MLM boom.

You may own a business and decide that you want to get people to sell on your behalf. This is ok but be aware of any risks you are asking them to take as a good business shouldn’t need their sellers to invest a lot of their own money upfront.