In a recent article where Melaleuca was mentioned to deny being MLM, a debate began between individuals on what defines MLM.
MLM simply means Multi-Level Marketing. If you are able to build a team of independent sales people that you earn an income from, this is multi level marketing, even if it’s one line of IBO’s. (Independent Business Owners) What makes MLM different from traditional sales are a few things. The distributors are all on a 1099 and not a W-2. They are independent, making their own hours, working at their own leisures.
A salesperson at a car dealership, for example, is hired by the car dealership and has to report in, still clocking in, still showing up for work and is expected to be there. If a salesperson doesn’t meet the expectations, they are fired. In MLM, there’s usually a low start up cost. In traditional sales, there is no start up cost and there may also be a minimum salary offered plus commissions.
Some of the largest MLM companies are Herbalife, Amway, and Mary Kay.
An IBO can’t be fired. They can be terminated by the company for violation of a contract. Most network marketing (or MLM) companies fall comfortable in