Multi-Level Marketing or Network Marketing
Last week, my friend asked me to join in his business. I asked him what kind of business and he told that all I need to do is to purchase a starter product package (which is very expensive) from him. It will be up to me then if I will sell or keep those products. I am thinking that selling those products is quite difficult for two reasons. First, the product is not popular. Second, it is expensive. I do not want also to keep it for myself as I do not like those products.
Meanwhile, by purchasing a starter package, they will give me also an online business account which will be used to monitor my earnings according to him. He added also that another way of earning some money is by referring someone to join. They will become my downline and I will be having a percentage of their income as well as their referral passively.
I realized then that it is a multi-level marketing which mainly focused on the "referral system" for passive income rather than selling the product. Does anyone have any experience with multi-level marketing? What are the advantage and the disadvantage of this kind business? Thank you.
I always get friends wanting me to join them, and a couple have been successful, however, profit comes from your friends and their networks buying items that are highly priced. It depends on whether you have time and money to do this, and for me it wasn't something I wanted to do.
I went to one meeting that cost £5 (my friend paid) and that's another way they make money, and call it network marketing (Arbonne). I didn't like the products that much and thought they were expensive for what they are, so I wouldn't have been able to sell them with a good conscience. Don't forget your friend makes money from your sales, and anyone you refer, they usually get commission on too and that's how it works. What products or services are you selling?