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- From: jmarold@netlink.cts.com (Jeff Marold)
- Newsgroups: misc.entrepreneurs
- Subject: Re: Diff between MLM, Netwk Mkting and Pyramid
- Keywords: MLM
- Message-ID: <14L3XB2w165w@netlink.cts.com>
- Date: 28 Jan 93 04:53:35 GMT
- References: <1993Jan26.044751.1718@cbnewsk.cb.att.com>
- Organization: NetLink Online Communications, San Diego CA
- Lines: 23
-
- mparks@cbnewsk.cb.att.com (michelle.lim) writes:
-
- >
- > What's the difference between MLMs, Network Marketing
- > and Pyramids? I undrstand Pyramids are illegal - why?
-
- Multi level marketing and network marketing are the same thing - they are
- a sales and distribution strategy in which a product passes through
- several sales layers on the way to the final customer. Each level is in
- effect a seperate business - i.e., you sell to someone who sells to
- someone else who sells to the final customer. The advantage is that the
- company manufacturing the product doesnt have to invest in warehouses and
- sales offices and employees . The disadvantage is every level invloved in
- a sale takes a cut of the product - thus the price to the final customer
- is much hugher than normal. Thats why MLM is best suited to new products
- that are not availble thru normal stores. Pyramid schemes are scams in
- which all participants recruit new investors who fund the growth of the
- organization until it collapses of its own accord . . .
-
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