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What is a Multi-level Marketing Chart?

A multi-level marketing (MLM) chart is a simple tree-based structure that helps you understand the various participants in any multi-level marketing affiliate program and their due compensation at any given point in time. MLM schemes are getting increasingly complex with people referring to them as isometric multi-level marketing, referral marketing, and in some cases, even pyramid schemes. The truth is that the basic underlying principles are the same in all of these variations. It is how the MLM concept is used that determines whether a scheme is a genuine money-making opportunity or just a fraud. Drawing or examining a multi-level marketing chart can often be key to understanding the dynamics at work in any given MLM affiliate program.

A healthy multi-level marketing chart should not have too many dead ends. If a program is bona fide, there is no reason why people should not be able to recruit more people. If they are not, then it is not a good sign, as the same could happen to your “branch.” All other things being alike, a healthy chart should be growing from every possible branch and not in some specific territory or region. Also watch out for too flat a structure in a multi-level marketing chart—this implies that it has not been in existence for very long, which is often how pyramid scheme operators work. They start something in one area, skim the top layer of the market before people wise up, and then quickly wind up operations and move the moment people start making noises. A chart is also a great way to find your compensation level and opportunities for the future. The higher you are in the chart, the better it is for you because you get compensated for every sale made by people below you as well.

MLM is a great way to earn some money provided you understand that it is ultimately a product-selling business model based on word of mouth and not some grand scheme that will make you rich overnight. Genuine programs have real products that people exchange for money. Only the supply chain is not traditional. There are no wholesalers or middlemen; there is just a chain of affiliates who are selling within their community of friends and family and getting compensated for it. This compensation happens because, in using them as sales agents, the company saves on an expensive supply chain.

Before you sign on any multi-level marketing affiliate program, be sure to understand the multi-level marketing chart and your future position in it. It is also important to keep updating all the people you hire and those hired by them in turn to know your compensation. Without that, you will have no idea of your earning potential at any given time.

 

 

About the Author

Kathleen Radesic is an internet marketing mentor and coach. She specializes in online marketing strategies that help catalyze massive growth for any business. Kathleen takes pride in helping others realize their goals one step at a time. If you want to find a home-based business or grow your existing company, franchise or MLM to levels you never thought possible, see Kathleen Radesic to learn more.

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