For the uninitiated Multi-Level Marketing is a marketing system in which the sales person receives a payment for the sales they make and they also are paid a commission for the sales of all the people they recruit. The people they recruit are called their downline and can be a source of multiple levels of commissions.
Many of these MLM Schemes are scams so before embarking entering into any MLM agreement you should do your research. Of course, there are a lot of people making money selling products like craft goods, costume jewelry, candles and more from home. They sell their product and the money they earn stays in with them.
Not all companies work like that and you may be expected to buy a lot of stock that you might not be able to sell or worse still, you might be asked to pay for a program that does not bring any results
There are a number of things to look for before you sign up for any MLM scheme.
- Will you get any real training or support? Will you get any support when you need answers and help? If you ask hard questions and they dismiss you with talk about positive thinking then you could be involved with a scam. The training should be about business techniques and support not about pushing the product onto your friends and family. If this is what you are being told to do then there is a very good chance it is a scam.
- Does it seem too good to be true? The simplest test I have ever heard is ‘if it walks like a duck and quacks like a duck then it probably is a duck’. Do you really believe all the claims they throw at you? Things like earning big money in the first month? Beware of anything that sounds too good to be true it usually is
- Are you being pushed to recruit more sign ups? the fact is you should be encouraged to make sales but if the object is just to drag more people into the company(including your soon to be ex-friends and loving family) then there is a very good chance you are caught up in a scam. The focus should be on helping people to find something they want. It is not just dragging in more team members to your downline so they can make sales to pass the money over to you and those above you.
- Are you getting the ‘hard sell’? If you are being put under a lot of pressure to now by the MLM representative you should start to worry. This is different to being offered a discount if you buy in the first couple of weeks. This is pressure being brought to bear without giving you a chance to think about what you are entering into or discussing it with someone. Genuine companies will offer you a chance to have a good look at their product for free before expecting payment. Never let anyone push you into making a rash decision.
- Now they want you to buy more? As far as I’m concerned once you pay for something it should be complete. There should not be more pressure put on you to buy something to make what you have already paid for work properly. That is like buying a car without a motor in it.Which car would you buy? There are a lot of scams out there and I get really angry when I hear of good honest people losing money in them. Quite often this is money they can’t afford to lose.
I am always delighted to receive your comments even if you don’t agree with me so if you have a comment or question please drop me a note below.