Have you ever wondered why people are so turned off at the mention of multi-level marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article we will examine basic differences between multi-level marketing and a corporate structure.

Let's take a look at the corporate structure first. Almost all of us work in this type of hierarchy every day. A CEO will head a corporation or company. Below him/her are upper management people i.e. vice president, controller, senior sales exec...etc. Below them are middle management people i.e. department heads, retail directors, consultants and various supervisors.

Finally we reach the sales representatives, customer service representatives, stockers, cashiers, cleaners, drivers, etc.

So who is it that makes the most money in this type of structure?

If you were to draw a flowchart this type of organization, it would look like a “Pyramid” Let me explain here. The CEO will make the most money as he/she sits at the top of this pyramid. Below them are a few upper management people (making less), then more middle management (making even less), and then most of the workers (making the least). It is the person at the “top” of this “pyramid” that makes the most money, because in this type of structure, you are paid based on “where you are” in the structure (regardless of what you do).

How can you make more money here? The only ways you can truly increase your earnings are if someone in this structure receives a promotion, transfers, gets fired, dies, or quits. As a result, everyone in the structure has an opportunity to advance.

Let's take a look at a network marketing structure and then we’ll compare the two. On the surface, both of these structures are mirror images of each other. BOTH look like a “Pyramid” structure. Draw a flowchart of this structure. An affiliate will sponsor someone, who in turn sponsors someone, who in turn sponsors someone else…etc. But...who is it that makes the most money here? Is it the worker at the top? It is possible, but most likely not and here's why:

Even though this structure looks identical to a corporate structure pyramid, in the MLM structure you are paid STRICTLY on what you produce and the work that you do, not on where you are within the structure. Wouldn't it seem fair that if move more product and sponsor more affiliates than others in your structure that you should get paid more money? Of Course! This structure is simply a structure of business owners. Pay in this structure is based ONLY on what you produce, not your position within the network. This is the defining difference between network marketing and the typical “Corporate Structure Job”.

In the MLM structure YOU are in control of your income. In the corporate world, someone else will always be in control of your income. Always!

Chris
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