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In addition to pyramids, there are other systems such as the Ponzi schemes (link) that masquerade as multi-level, offering big returns by investing your money with them, but that is another article topic. But do only those of above (a few) earn money? Unlike a job where the director of the company earn more $ than managers, these rather than lower-ranking managers and these more than the workers or employees located at the bottom of the organizational pyramid. In a multilevel profits do not depend on a position or fixed appointment, but what so effective are you and your team for marketed products. To put it clearly, in a MLM business any new distributor may earn more money than anyone who is above him in the organization. Obviously, as with any business, people who come in the early years have greater likelihood of success.

For example, if you were one of the first to sell pizza at home in your city, you will have more chance of success if you’re #500 to do so, right? This is something natural for any type of business. Now, where does so much money to pay to distributors? Commonly between 25 and 40 cents of every dollar that cost a product (price Distributor) is used to pay commissions to distributors… But, where get companies so much money to pay its vendors?, maybe do product not becomes more expensive too? The advantage of direct selling companies is precisely that the product vadirectamente of the winery from the manufacturer to the end consumer’s House, without that pass through a chain of distributors (e.g. importing Dist. wholesalers, shop retailer) that raise the price of the product. In addition, the MLM companies don’t have to spend $$$ on advertising (e.g. commercial in radio and television) and distribution costs are very low because they do not require tents (or many wineries) to sell the product.

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