As their name implies, MLM companies are organized in tiers or levels of independent distributors who serve as the primary means of marketing and selling MLM products. Most of these companies are in the wellness, beauty, or health industries. As a result, face creams, dietary supplements, and makeup are common MLM products.

Since those products are not stocked in grocery stores or national chains like Wal-Mart or Target, a multi-level marketing company relies heavily on its distributors. Some people just sign up as distributors because they like the products and they want to buy them at a discounted price while others sign up looking for financial gain. This creates two different kinds of distributors: customers and salesmen. Of the two groups, it is usually the salesmen distributors who give multi-level marketing companies comical or negative reputations.

For example, financially motivated sellers are often the ones who approach everyone they know and everyone they don't know about buying company products or becoming a distributor. They are also the ones who get frustrated if selling doesn't generate the revenue they hoped for. On the other hand, exaggerated promises of compensation and high product prices are a few factors that could shift the blame for a negative reputation to the multi-level marketing companies themselves.

No matter who is to blame for the controversial reputations, the stereotypes provide fertile ground for parodies, an MLM mockumentary and other comical perspectives. Whether you are in favor of, against, indifferent to or clueless about MLM companies, the whole office can enjoy a laugh together by watching some popular renditions on the organization. The more animated the characters, the more you're going to laugh.

If you are seriously trying to investigate an MLM company, you can't make generalizations about it though because every company is different. If you are trying to decide whether or not to buy products or become a distributor, you will have to do research on its products reviews, its compensation plans, and the satisfaction of both its customers and salesmen. Be careful of listening to famous athletes who promote the product because they are sponsored by the company as well. You might need to dig deep to find reliable facts for or against the company in question.