MLM: Scam or A New Business Model (Part 1)

Right here in Singapore, mention the name MLM (Multi-Level Marketing), you will most probably be drowned by cynical comments about it before you continue to talk about it. Just a brief history on MLM, some years back MLM was in fact illegal in Singapore. The law was subsequently amended and MLM became legal. There is an industry watchdog named the Direct Selling Association of Singapore (DSAS) to keep tabs on these MLM companies.

Basically, MLM companies run on the 'upline-downline' system. More in-depth research shows that there are types of 'business models' that companies choose. Let me show you 2 of the models used by MLM companies.

Firstly there is one called the "Uni-Level System". This model run on the basis that you can have an infinite number of downlines under you. There is another one called the "Binary System". For this model, you can only have 2 downlines directly under you. If you have a third downline, you will have to place it under one of the downlines that is directly under you.

Sounds complicated??
More to come in Part 2 =)