8
Oct
2010
How To Avoid Network Marketing Scams
Since a handful of people do get burned by participating in dishonest MLM schemes, you can help others to identify network marketing scams, but always when you write about this topic you should include success stories and positive examples as well, don’t reveal just the scams. One must check the products or services of any MLM company and determine if a significant percentage of consumers would continue to buy them if the participants do not make money from the underlying opportunity. If the products or services have questionable value or if the participants must purchase excessive quantities without reasonable intent to use or resell the items, then the company is likely an unlawful pyramid scheme.
The majority of people who say it is too hard to make money from network marketing opportunities, or think there must always be a scam involved, usually think like that because they don’t know how a legitimate MLM really works. Dating back in 1979, the U.S Federal Government has ruled that the MLM industry is legitimate via Amway Corp. Although, saying the MLM industry itself is legal, doesn’t equate that all MLM companies are working legally. Just like any industry, the huge potential and lucrativeness of the MLM industry has tempted its fair share of MLM scams.
Scrutinize for a mlm that is not trying to add people to their business but to increase sales: genuine mlms try to increase their down line as well as product sales but mlm scams will try toincrease only the number of people. Also, scams offer high reward and commissions but genuine mlms offer a reasonable reward and commission.
Be mindful of multilevel network marketing scams that ask new associates to purchase major amounts of inventory. These companies can disappear quickly and will be gone without a warning, leaving you with useless inventory.
11
Nov
2009
MLM Brutally Honest Review An Absolute Must Read!
MLM Marketing is a marketing structure used by some companies. The MLM structure is designed to create a marketing and sales force by paying promoters for both the sales of the companies products they make and for any new distributors they bring into the company as well.
Anyone who joins and promotes the companies products are known as distributors. They do not earn a salary but instead they are awarded a commission dependant on how many sales they make themselves and the sales their downline make. This process is similar to a franchise.
A downline is the people that have paid you to join the MLM business and you will get a percentage of their sales. So in essence you pay to join into the business and then you will earn for every person you bring into the business and any future sales they make.
Here are some advantages of MLM’s: Quick and easy to get set up, Can start straight away, If you join when the MLM business is relatively new you can stand to build a large down line and therefore earn a lot of money.
However there are Disadvantages of MLM’s: The methods are now becoming dated; this is because most MLM models encourage you to sell to your friends and family. They also involve cold calling which is where you ring up people and tell them about your product or from a list of people you can buy that have bought similar products in the past or have been used by other people in the MLM. If you join near the bottom of the line you don’t stand to make much money as the market has already been saturated by the people in your upline People with more advanced online and offline marketing techniques will do better than you Most MLM’s are pyramid schemes (which are illegal) in disguise
So overall I think MLM’s are outdated as the marketing techniques they teach are no longer effective. Nearly every MLM will not provide you with the real training you need on Internet Marketing if you are to make money online.
Now there of course there are people making money from MLM’s and I’m not by any means trying to say they cannot make you money, but there is a very high failure rate as there’s a lack of training and support!
One of the main reasons people join an MLM is because of the lifestyle that is portrayed however at the beginning you will spend most of your time calling people on the phone and more often than not getting negative responses. This doesn’t sound like fun to me!
However if you have got your mind set on joining an MLM make sure you join near the top of a line and that there will be the support and training you require!
This article came from the laptop of Jonathan Pitts. Jonathan is a very experienced Internet Marketer who has had a lot of success in this Industry! He now mentors others so they can become successful marketers too! Fed up of the Hype in this Industry he has created a Truth Report giving the FACTS on how to Make Money Online! He could be charging $100′s for this but has decided giving it away for free!