Multi-level marketing, also called MLM and network marketing, has been used as a way to market certain products for years.  Most of the time we see soap, cosmetics, and vitamins being sold by this method.  Of course soap is the granddaddy of network marketing thanks to the success of Amway.  It was only a matter of time before people started trying to find other products and services which would work in this sort of marketing plan.

I was pitched by a friend a few years ago about an opportunity in green power.  The plan was that the electricity was going to be deregulated and you would be able to buy it from anyone you wanted.  By signing up under his plan I would be able to get a discount on my power charge and I would be able to sign others up and make a commission off of their electrical use.  It seemed rather complicated to me and I didn’t join which is good because the company went bankrupt six months later.

Although this plan didn’t work out there are a lot of new companies offering plans such as MLM jewelry and MLM perfume which are doing quite well.  This really makes sense when you think about it because a person who is interested in these types of products usually doesn’t have a lot of knowledge so they welcome a friend, someone they trust, to offer advice.  Network marketing jewelry programs are usually set up on the party plan.  One person holds a party for a group of their friends.  At the party several pieces of jewelry are shown and the friends are encouraged to purchase.  This can be a win/win because the woman who held the party makes some money and the friends get expert advice on what jewelry to use in which situation.  I think you are going to see more and more of these plans as people try to make extra money and save a few dollars even on luxuries.

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Filed under: MLM Network Marketing

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