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People who want to enter MLM must know how to detect and avoid fraudulent schemes.
Unfortunately, because a lot of money can be made fast
by crooked pyramid scheme
founders, there will always be those who operate for
the sole purpose of enriching themselves
while they sucker the gullible out of their money.
Here is what you must watch out for and what to avoid:
a) Avoid non product related initial recruitment fees
either to the person who brings you in or
the company itself.
b) If you must purchase a lot of inventory first in order
to be a part of the company sales
program, do not get involved.
c) Be suspicious of outrageous claims and promises of
quick perpetual huge monthly incomes.
Avoid those who promise that fortunes can be made while
you hardly have to lift a finger.
There is no free lunch in MLM!
d) Demands that entrants sign on the dotted line and pay
an initial fee immediately or else
they will lose their chance to participate are often
used by get rich pyramid scammers. Don't
fall for pressure techniques.
e) Look out for enormous up-front fees added to distributor
kits. Unless the kit contains
product there is no reason why you should have to pay
$100.00 plus for the starter kit. The
typical kit contains a video or two, audio(s), forms,
brochures, the company manual, and
maybe a few marketing gizmos.
a) Make sure that the Company sells products which
you yourself can utilize. And if you are
forced to make enormous monthly product purchases, are
you in a position to resell the
excess? Most people cannot do that. Skip that company
and look for another even if you have
some use for their products.
b) Select only Companies which offer refunds to customers
who are not satisfied with a
product. (The Awareness Corporation, for example, offers
refunds).
c) Can you make a customer order before you join as a
distributor? You should be able to use
the products to convince yourself that they live up to
your expectations.
c) Can an heir inherit a down-line? A legitimate company
should not add a clause to its
contract which voids an inheritance.
d) The benefit plan, does it offer dynamic compression
and a return of the profits to the
distributors? You will be earning less with a company
which is not willing to offer you that.
e) If you find a MLM company whose product(s) you enjoy,
whose products you would
purchase, even if they were not MLM, then you have found
a gem among MLM companies.
Go for it!
Most people join a MLM for the purpose of making money.
But if you can join because you
want and like the product(s) first, with some effort
on your part, the money will come.
Although you can earn some large sums initially in MLM,
be prepared to give it time, perhaps
even a few years, before you see a steady large income
from your residuals. The one income
you can always depend on in MLM, comes from your own
continued direct sales.
Any suggestions and additional points are welcome. Feel
free to send your comments:
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The above information is brought to you by Ursula Kulju, independent
distributor for the fabulous Awareness
Products, ID 904001.