MLM (Multi Level Marketing) and Direct Selling fall under the bigger umbrella of Network Marketing - It is one of the most powerful home based business mediums today. However, the general public’s lack of understanding and the misconceived and tainted reputation of MLM often precede it because of several illegal pyramid schemes that have come about.
MLM and network marketing is a means to distribute products and services and is actually a huge, $100 million dollar industry. It evolved from the basic concept of a door-to-door salesman to what it is today and direct selling has never been the same. The Amway Safeguard Rule was what set the legal standard to ensure that the Federal Trade Commission rules are followed, in response to the pyramiding scheme outbreak of the 70’s and it also ensures the validity of the business opportunity through three important points. These points look into requirements such as the retail sale of the products and services to qualify for any recruiting commissions and /or sales, a mechanism in place to avoid over stocking of inventory without the intention of reselling and the opportunity for a buy back provision for unsold, undamaged and unopened inventory from the representatives who choose to leave.
Read more at http://www.homebusinessbug.com/what-is-a-mlm-direct-selling-and-network-marketing-10037/
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