Your best defense against getting involved in illegal schemes and the "LOSERS" calling themselves Multi-Level Marketing (MLM) Programs, is knowing what to look for, thereby, knowing what to avoid.
After over three years experience and research with MLM, we have come up with some "guidelines" which we use to avoid the "Rip-Offs", Schemes, and "Losers". These important "guidelines" enhance the chances of picking the "BIG WINNERS' in MLM. You too, may now use this as a "check list before making any final decision:
Avoid the many "Get Rich Quick" offers like "Earn $100,000 Over The Week-End", or something like that. Legitimate Multi-Level businesses and consultants are at the heart of a vast communications network and have never... repeat NEVER heard of anybody earning vast amounts of money with such offers.
Marketing products through the MLM concept is one thing, a "chain letter" is another. Even if the chain-letter has a product such as a Report, it is still considered a chain-letter by Postal Authorities and may get you the wrong kind of attention. Some even say "this one is LEGAL... Refer to Postal Statute No.XXXX". DON'T BUY IT! A "chain-letter" is a Chain- Letter PERIOD. If you must send the name or names on the 1etter a sum of money and add your name, expecting others to send you money, you will be involved in a "Chain-Letter".
Avoid Pyramid Schemes. These schemes are a problem to MLM because many people do not know the difference between a pyramid plan and a merchandise based marketing plan. You can spot a pyramid plan by:
They offer rewards for the act of recruiting.
Large inventory purchases are required to get in their programs.
They lack interest in retailing to the consumer and they make deceptive claims designed to defraud people of money. Legitimate MLM companies require new distributors to purchase only one or a few items of what they want and the product is probably one they would buy even if the business opportunity was not offered or available.
Avoid plans with more than seven levels. Firms using more than 7 levels do so to make the profits look fantastic at the last few levels. These are usually the ones that pay low commissions and offer products that are over priced.
Avoid programs offering to print and mail brochures for you. Because there 1s NO WAY for you to know how many will actually be mailed. Also, if any are mailed, is usually by "Bulk Rate" which is the most ineffective way to send them out .
Avoid programs with complicated commission formulas. This seems to always result in an excuse for NOT paying any commissions to many or, in some cases, all of their distributors.
Avoid plans promoting products not useful to most people, or that cost more than the retail price paid in stores. Also beware of any plan that lets people become distributors without buying a product. This is not fair because most distributors, when given this option, will not buy the product. This results in lost sales all the way down the line.
Now that you know what to avoid, you are better equipped and ready to select a "genuine" M-L-M opportunity of your liking.
Master these concepts and it is time for you and your downline to Celebrate
50 Ways to Make More Money in Network Marketing
It seems that just about everybody is jumping on the Network Marketing Band Wagon due to the success of some major players like Amway, Mary Kay Cosmetics, Herbalife, Fuller Brush, Watkins and scores of lesser known companies.
Multi-level marketing is a fancy name currently being used by some companies in an effort to do two things:
Just what are all those thousands of programs and solicitations spreading a swath across the country...called "Multi-Level Marketing"? Well a good portion of them are nothing but chain or pyramid schemes, some completely illegal.
Multi-level marketing may be the opportunity of the 1990's. Many fortune have been made, and many, many more will be made by this simple marketing method.
I was exploring the internet jungle a few weeks ago when I stumbled upon what appeared to be an open MLM forum, however it had pretty much been taken over by distributors for one dominant opportunity.
There seems to be any number of appealing Multi-Level Marketing programs available these days.
After 7 years in business I still read almost every piece of mail I get. (I guess that shoots down those rumors and detailed instructions from people on how to get your envelope opened since I open them all.)
If you are promoting a MLM program, your ability to generate quality leads to help your newly sponsored people is perhaps the most, single important challenge that you have to conquer.