If you ask me, most MLM bizopps are fraud. They are the same pyramid schemes only running by a different name. Pyramid schemes were popular in the nineties. They fooled many people. Stole lots of money. But didnt make any lives better.
The only ones that make money in these frauds are company owners themselves. Or pharaohs, as I call them. When youre at the top, its the only way to make money.
Sooner or later they fall apart. I remember participating in one grand scheme that lasted only a week. Who made the most money? Yes, fellas at the top. What happened to the rest? Lost money. Youre not a recruiter, not an expert salesman. If you dont bring anyone in, you keep paying and losing money.
Thats not the business opportunity you wanted.
Why These MLM and Pyramid Schemes Fail?
Main point is that they dont have a product. Most of the time, the business model revolves around suckers who pay money without asking or thinking. It only lasts as long as the people below you keep recruiting. But it stops sooner or later. Then each member in the downline starts dropping off until you have no one under you and youre out of the game as well.
Some MLMs do have a product, but it is only used to disguise the pyramid scheme. Sometimes the product is as lame as the companys information kit or company reports. Overall though, its the same tactic, to manipulate you and get you in. Youll buy their crap, then some more expensive crap and keep referring others.
Are There Any Legitimate MLM Business Opportunities?
Im sure there are. I mentioned that most of them are scams. Its true. But there are a few reputable companies. Im talking about firms that do have their own product.
My favorite example is web hosting industry. There are no sales gimmicks, no hypnotic sales pitches. There are multi tier payout plan. You sell the real product, or service in this case. Get clients. Clients pay for service and you get commissions as long as they stay in business.
If you refer some sellers below you, you get commission from them. Now that is a real legitimate MLM business model. Of course, its not a pyramid. It usually has only a few levels. From 2 t 5 I think. But its a perfect example of a good legitimate MLM biz. Some beauty companies have successfully adopted such MLM models.
Ok, Most are Scam so How to Avoid it?
First, raise the levels of your B.S. filters. These recruiters, if they are good, will talk in very convicting way. Theyll even hypnotize you. You need to be aware. Constantly think about the main idea of it all. What is the company selling? How will you sell the product?
Look up the company in BBB ratings. Whats their score? Are they any good? Check internet MLM forums. Read articles, reviews if there are any.
It is very easy to get trapped, but make sure you use your common sense when dealing with these people. Be skeptical. You need it a lot in this industry.
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