Down, Down, And Further Down

Multi-level marketing have revolutionized the world of scam businesses. Unfortunately, while several legitimate multi-level marketing companies exist, the bad ones, the illegal ones, the ones that suck the money from the average working Joe make the news. As a result, consumers and sales people alike need to understand the terminology involved in such financially draining scams. One such term is whenever a company refers to the MLM downline builder.

The typical MLM Company starts out with one person who sells a product. That individual not only sells a product, however, but he also sells a portion of his business to others willing to sell the product. In turn, a portion of their profits goes to him because he allows them to sell under him. These new sales people can do the same to their friends, families, and neighbors by having others sell under them. This line of people is what MLM companies refer to as the downline. Those who earn money selling the products will become the downline for the salesman-turned-manager at the top who now simply manages his sales people, encouraging them to sell, because when they do, he turns a profit. He no longer sells, but instead he...