also known as MLM
Is it good or bad?
Robert Kiyosaki (rich dad poor dad) seems to think its okay
Also the FTC (federal trade commission) says it's not illegal per se
Under one condition:
One cannot receive a commission for a startup fee.
MLM is a system where a business automates is selling by giving the
consumers an incentive to sell. Because the consumers of the product receive the product
they can recoup or even possibly make more money on their investment by referring new customers who buy the product.
MLM .... hmmm its interesting, because most companies dont offer this incentive.
Think about if mcdonalds gave you half the profit of the next guy you brought into their franchise. Or what about your college, what if you received 50% of the tuition for bringing in your little brother?
Tons of people give praise to their favorite college, or their favorite brands. But do they ever get anything in return?
The only problem I could see is if someone we're solely relying on the commission to come from the MLM. IF that's all your getting is a business to sell, I wouldn't do it. But if you believe in the product, then I think its a great way to recoup your investment.
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