When is it MLM, and when is it not?

Really, what is MLM (Multi-Level Marketing)?

I ask this question because earlier today, I got confused. Let me give you a bit of background.

A lady called me this morning by mistake. She had Googled a company I represent, and came up with me and called thinking I was in the Home Office.

She had attended a seminar the company had hosted and had a couple of questions. She was considering becoming a business partner, so I told her, "Sure, I'll answer what I can."

She only had a couple of conceptual questions, so I asked her what is was that had peaked her interest in us.

She said, "Because I need something to supplement my Realty income, but I didn't want to get involved with multi-level marketing or any of those type things, and this concept strikes me as a franchise, not a MLM."

She then rattled off a list of companies that I did indeed think of as "multi-level marketing or any of those type things."

I realized that I actually had felt that way also when I was first introduced to, and became a business partner, with this particular company some time ago

Now, that got me to thinking, being an insurance agent, did that skew my perception of what is MLM, and what is not? After all, there are a number of people who benefit financially from commissions indirectly when ever an insurance agent sells a policy.

It does kind of sound like MLM, doesn't it?

I'm not talking about pyramid schemes, nor things considered to be illegal, but a legal multi-level marketing program.

According to Investopedia:

Legal multi-level marketing (MLM) involves being recruited in order to sell a product or service that actually has some inherent value. As a recruit, you can make a profit from the sales of the product or service, so you don't necessarily have to recruit more salespeople below you. And while you may be encouraged to recruit other salespeople whose sales would give you more profit, you can stick to just selling the product directly to the consumer if you choose.

Merriam-Webster defines a Franchise as:

2 a: a special privilege granted to an individual or group ; especially : the right to be and exercise the powers of a corporation b: a constitutional or statutory right or privilege ; especially : the right to vote c (1): the right or license granted to an individual or group to market a company's goods or services in a particular territory

After reading that, I realized a person could literally draw a line down a piece of paper and place various companies on one side or the other based on their individual products, services, structure and value.

Before going into my perception of what constitutes a MLM (non-MLM), I'd like to hear from you.

What is your occupation and MLM (non-MLM)? Why do you feel that it is one or the other?

After thinking about it a bit, do you now feel differently about your MLM (non-MLM)? Why?

Does thinking about it make you feel better or worse about your MLM (non-MLM)?

I believe this could be very interesting and informative to all of us.