Multilevel Marketing History
Multilevel
Marketing is a business modality practiced for more than 30 years in Brazil,
and in the United States today is one of the biggest activities generating
Extra Income or Principal for people of diverse sectors and segments and also
for Housewives Mainly.
With
its origins in the USA, this model of system was consolidated in the 40's,
where it passed several cycles, adapted to different moments of the world
economy and spread to different countries.
In
Brazil, there are several already consolidated business models based on this
format and today it is the main professional activity (in some cases, the only
one) of many people.
THE DIFFERENCE: Multilevel
Marketing X Financial Pyramid
|
Multilevel Marketing
|
Pyramid
|
|
There
is a viable product with competitive price or attractive commercial utility.
|
There
is no viable product. If it exists it is much more expensive than the
competition.
|
|
The
marketer must prove that he has been able to resell to the end consumer.
|
The
consumption is given only by who is also a reseller. There is no end
consumer.
|
|
The
Company guarantees the repurchase of the products, to avoid the accumulation
of stocks in the chain.
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The
repurchase of the products is not guaranteed, which would avoid the
accumulation of stocks.
|
|
The
Company makes more propagated products than the profits that the reseller can
get.
|
There
is more propaganda of the profits that the marketer can get than of the
product itself.
|
|
The
Company collects taxes.
|
The
Company does not collect taxes.
|
|
There
is no entry fee, or it is not critical to the company's sustainability.
|
The
entry fee exists and is the main source of revenue for the company.
|
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