Is MLM business still relevant?

In this internet age, where consumers can shop online and have their purchases delivered to their doorsteps at fairly low prices, is the MLM or direct selling business still relevant?

Faced with this new challenge, some MLM companies have lost their direction. Instead of innovating, they turned conventional. One very established MLM company planned to open a supermarket-like store for the “convenience” of their distributors. Another MLM company directed their top distributors to open retail stores, like the chain-store concept. They called this “Franchising”

The more innovative ones are riding on the internet wave by switching the entire marketing plan to the web-based system. Each distributor is given a replica of the MLM company’s web-based system and all sponsoring, product purchases, payment to and from the MLM companies are done through this system. One MLM company used the VISA International Payment card system for cash transactions with their distributors.

It would be a WIN-WIN situation for the ethical MLM companies and their distributors to ride on the internet wave. But some unscrupulous and greedy MLM companies are trying to reap maximum returns for themselves at the expense of their distributors. The ethical MLM company would direct any online sign-up to be hooked to one of the established distributors of the company. These wise MLM companies would share benefits and profits with their distributors and they would grow mutually.

The unethical MLM companies would treat those direct online sign-ups as their own downline and reap all the over-riding commissions for themselves. So, watch out for these unethical MLM companies and stay away from them like plague. There are some established MLM companies that turned unethical and greedy. You can watch and see them die slowly. They demand and expect a lot from their distributors but give very little in return. Stay away from these companies by all means!

Be wise. Do not believe in any schemes or MLM companies that are too good. If the company pays very high commissions, ask yourselves where the money came from? Always ask questions, until you have cleared all doubts in your mind.

During this financial crisis, with a large number of unemployed people, you are bound to see more con men on the street. Don't be greedy and become a target for them.