Protect Yourself And Your Money From Mlm Companies
MLM or Multi-level Marketing has been around for 25 years
. They usually distribute product or products through direct selling from the manufacturer.
The idea behind these businesses is to provide larger profit to the distributors by getting rid of middle men. Its like buying wholesale and selling the products directly to their target market for a profit. This idea is great if strictly implemented and followed. However, for most MLM companies, the focus of the business shifts from selling to recruitment. Making it hard for the bottom level members to earn and worst get back what they have invested. This is the main reason why the reputation of MLM in the business industry has been badly tarnished.
Today, MLM companies are known for encouraging hopeful individuals to get rich by joining the business by simply investing on their products and recruit new members for a very attractive income. Often, they advertise no experience needed and require little or no work at all. Before joining any company make sure you do your homework.
1.Check with (BBB) Better Business Bureau. First of all, you will need to check if the business is legitimate and credible. Find out if the company has received complaints about business malpractice, lawsuit or other related information that can help you decide if you would like to join the company.
2.Beware of a company that requires huge amount of money to start up. Legitimate Multi-level Marketing businesses do not usually ask for a huge sum of money to start up the business. They should be at least more concern on your ability to the sell product.
3.If the company is more concerned on recruiting new members instead of selling quality products, then run. This is one common denominator of pyramiding scams, where the latest distributors are the ones who are likely to lose hard earned money.
4.Research about the company. Ask at least 3 persons who are already involved in the business. Ask about the benefits, risks and other data that you can use to gauge the companys success. It would also help to ask for brochures, modules for training materials if they have any, their marketing strategies and the product they sell.
5.Know the products. Check out the products that the company is offering. Determine if they are of good quality and are easy to sell. Get information on how they advertise the product or how they plan to offer them to the target market.
6.Ask if there is a commission when recruiting new members. This is one of the warning signs that should alert you of pyramiding scams.
7.Is the company viable? Knowing the companys financial stability will not hurt. Most Multi-level Marketing business promises good money but until when?
8.If the company promises you a too-good-to-be-true profit or commission, be more alert! Most probably its really too good to be true. Ask yourself, if this earns this much, then why do they have to recruit members to sell it when they can do it on their own and make a fortune out of it.
9.Know the advantages and disadvantages of joining any MLM business. Most of the new recruits and prospects are being encouraged to join by friends, family members and somebody they know from work. No matter how much you know these people, dont be too confident to just take their words, remember, they will be paid from your membership fee.
10.Lastly, if the company is willing to pay you more for commission in recruiting new members than requiring you to sell the product, then something isnt right. To save you from losing your money, it is recommended to go with already established MLM companies.
Joining an MLM company can be promising and exciting. However, with thousands of existing MLM companies that have not so good reputation, it is recommended to check out the company first before joining. The key here is finding the right company, the right people and the right product. Its easy for a con-artist fronting MLM to get your hard earned money out of your pocket, but it is easier to keep your self and investment safe by following the 10 simple rules listed.
by: Elijah Chai
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