What is difference between MLM and GIFTING

WHAT IS THE DIFFERENCE BETWEEN MLM & GIFTING?

Being members of the Better Networkers family, we all know what MLM is, but do we know what GIFTING is and how does it compare with MLM.

Actually they are both very similar. They are both based on the MLM system.

MLM is an enterprise which has a product which is either used by the member or sold by the member to the public or the down line. I think every MLM enterprise has a monthly fee payable by all it’s members, usually about $50 per month, give or take a few dollars.

Having joined the scheme one then has to actively recruit a down line. It is from this down line that their money is made. No down line, no money.

Until such time as one has enough people in their down line to cover their monthly membership fee, they are required to pay that. I believe that this has been the downfall of thousands of promising prospects. Due to financial constraints, they have been unable to pay the monthly fee and so have had to leave the enterprise, invariably then bad mouthing the system to the world.

The GIFTING system works on the same principle. When one joins, they pay a small once off payment, which is broken down into 5 gifts going to their up line members.

Thereafter, just as in MLM it is their responsibility to recruit their down lines. 5 Levels are as far as one can go. The size of the level is infinite. There is no limit, on the first level one could have 10, 50, 100 or even 1000 or more. The more on your first level the more successful one will be.

The other difference is that one can only be in the system for a six month period, unlike MLM which can be a life time. After six months, one can join again, pay the small start up investment and start again, or continue, to build a down line.

I know the MLM organizations don't like the gifting system. Probably because there is no product involved, no monthly fees, no meetings Thus it is a threat to them, being more cost effective to the member.

Sure the gift is small, only $5. But $5 multiplied by several hundred or thousand people adds up nicely. Once the first level is built up, the funds will steadily come in. Look after the pennies and the pounds will look after them selves.

I believe that main advantage that the gifting system has over MLM is the "NO MONTHLY PAYMENT" It takes the pressure off, of course that can also be a bad thing, no pressure can mean no effort no down line.

I hope this helps those who might not have known what the difference was between the two.

Norman "2009 is Mine"

http://www.lksix38.com