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Entry Level Marketing Jobs In

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Multi-level marketing, or MLM, has a long history that really took off in 1959 when two highly successful distributors broke off to start their own company, the famous name of which conjures up images of living the "American Way." Now, with worldwide fame, it and other similar companies have become the target of many a MLM movie which pokes fun at the business model.



And thanks to the "creative" and sometimes desperate tactics of distributors, along with motivational pep meetings that are reminiscent of one's college frat days, it has made the business model such an easy target for those who would poke fun at them.

But just what is multi-level marketing, where did it come from, and how did it obtain such a firm grasp on the American public?

A Quick History of MLM

Although Amway is often thought of as being the first multi-level marketing -- sometimes also called direct marketing or network marketing -- company, its history actually goes back farther than that. However, Amway was the first one to really make it big and they are actually considered by many to be responsible for turning more home business owners into millionaires than any other company.

Two longtime friends, Jay Van Andel and Richard DeVos, had worked hard to become the most successful distributors in their organization during the 1950's. By 1959 Jay and Richard were looking to expand their product offering. That's when they began to venture out on their own to start their very own direct marketing company.

As Jay and Richard's company gained in popularity, it was hard for many people to not look at the structure and think, "That's a Ponzi scheme!" Indeed, the pyramid-type structure can remind one of Charles Ponzi's postal coupons scam of the early 20th century.

By the 1970's, the outcry had grown to a point that the FTC decided to investigate. After intense scrutiny, the FTC declared multi-level marketing to be a legal business model. What makes it legal is the fact that you are exchanging a product for money, unlike a Ponzi scam in which the investor is tricked into believing that there is a product when in reality there is none.

Today, network marketing is widely accepted, though there are still plenty of souls who frown upon it.

Main Criticism

The main criticism of companies like the one founded by Jay and Richard is that they tend to make exaggerated income claims, promises of wealth, and require distributors to make minimum purchases of products that are, in most cases, overpriced.

And the selling of overpriced "wholesale" products isn't the only place these companies make their money. Training and marketing materials, such as MLM DVD's, are often pushed in order to "help" distributors recruit more members into their organization.

The popularity of MLM has made it a large target for those who would lampoon it. Search the web for "MLM movie" and you're sure to find plenty of films both critical as well as comedic.
Entry Level Marketing Jobs In
One of the most powerful concepts to ever come along is Multi-level Marketing. However it has gotten some of the worst critique available simply because the design appears pyramidal to those that do not understand business.Nearly every business is set up as a multi-level marketing. This simply means, there are various levels from the lowest to the highest within any company that are integrated into the entire scheme of product sales.As an example, when a burger is sold at Wendy's, it creates a sale for the company general. However because it is multi-leveled, many people have to be paid a percentage on that single sale. So if a Wendy's burger is purchased, the sale will be divided between a whole host of representatives for Wendy's within either a local or general area.From the Cashier, cooks, assistant manager, store manager, and even to the warehouse, distributor, markets and even farms. And all the way up through the company hierarchy, Each person will get a percentage of that sale. And the higher up you are on the ladder, the greater percentage you will receive plus the higher up you are in this pyramid, you will receive multiple earnings from multiple stores. Whereas local stores only need to pay their local employees.Now lets break this down into a matrix for multi-level marketing... 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15If you are at the top of the ladder lets say Wendy's president and CEO, you would receive a share of the sales from all group below you, 2-15. So lets say the number one position is left for the top CEO of a company. Then 2 and 3 are district Vice Presidents. Then 4-7 are local store owners. And 8-15 are different stores, etc all the way down to the mop and bucket person. Looking at this simple set up the top CEO will earn from all sales made in the company wide matrix. However the two top dogs below the CEO may only make earnings from different districts or locals. However number 2 will only earn in their area 4,5,8,9,10,11 Whereas number 3 will earn from 6,7,12,13,14,15.And as it breaks down further the less sales earning potential you would have. What we have just seen here is what is called the great Pyramid Scheme that everyone so quickly fights against. And I agree it is a pyramid scheme because all of the money eventually finds its way to the top and in the CEO's pocket.The way it is all broken down is if one dollar has to be distrbuted through various levels, then each level will get a percentage of that one dollar. Yet with most companies all of the earnings are capped. Meaning that one dollar is all there is to distribute between the CEO and all of the underlings. This is what the media screams about with Multi-level marketing schemes, and this is what has been declared as illegal for the common person to be part of. It is when all of the money ciruclates back up to the very top where they control everything and collect the greatest of the capital.Now become wise, and learn the difference between Multi-level programs that are very legal versus those that are made to appear as legal when they are operating exactly the way that we are told is illegal.Now I am not saying they are illegal, I am saying that they are operating their business exaclty like we are told is illegal.All of the money funnels from the bottom of the hierarchical structural pyramid all the way to the top. And that is what we have been told is an illegal pyramid scheme. Now what we are told is legal is when anyone can sell a product and make a profit through various generations and levels. So let's begin to use the same example from above. Instead of each burger from Wendy's being the sale that pays from the bottom to the top, a honest program allows for anyone to have the rights to resell the burger and make the greatest percentage of the sale. It literally makes everyone CEO's of their own company as long as each indiivudal is making sales. And it is also very legal to find other people to make sales for you and then you can receive a percentage of that sale, while they make the greater percentage because they made their own sales.Now here is the huge difference, it doesn't matter where you are on the pyramid because you are always in the position of the CEO. Whereas in the business world that never happens.The reason why as I said above is that the rights to that single dollar represented by that single burger is given to ONLY the head of the Company. However when you have the rights to that burger then the sale of the burger puts more of the percentage of the cash back in your pocket and then the remaining is left to filter on above.What this does is stop all of the money going from the bottom all the way to the top, and it gives every single business person the opportunity to become their own CEO and make the largest percentage of the sale. And the leverage is produced when anyone that comes on your sales team also makes sales for themselves which creates a percentage for you. They will get the largest percentage and you will recieve a percentage also. If you have 1000 people on your team selling burgers, you will receive a small percentage from all sales. Unlike a CEO of a company actually receives the greatest percentage of all sales, and tghose that actually sell the burger receive the smallest percentage. Recognize THE DIFFERENCE?This is POWERFUL marketing if people would just understand... So many today scream pyramid scheme and they do not even understand what it is. Our entire American edcuational, scientific, medical, economic, religious and government is all designed under the philosophy of the Pyramid.However like the Founding fathers created, they wanted everyone to become their OWN CEO's, they did not give all power to one entity, power was disbursed among first the states and then the people.But when a operation takes over that begins to give all power back to one entity then we will have the CEO type in chanrge of everything and receiving all of the reward and the rest will continue to lose more and more.So it is imperative to realize that the true structure of Multi-level marketing is not flawed, but it is how it is being advertised that creates the wrong impression. And all along most people are accepting the other version not realizing that it is the pyramid scheme that they are afraid of.

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