There are many self-proclaimed entrepreneurs who send invitations and want to join Multi-Level or Network Marketing Company, but these are all seems like getting rich quick strategies. The main goal of an entrepreneur is to create something new and innovative. MLM is a common formula applied on a product with a high premium.
There are many companies like Lia Sophia and Mary Kay, who have a positive image. There are much more usually built around investment schemes, which continue to make a bad image of the sector. If you search on the Internet, there are dozens of the article with negative thoughts, and a very few of them sign their praises.
If speaking technically, pyramiding is not a legal practice that solicits their company members to recruit more members, even more than selling their product. In result, the major source of income for the members is the total number of members they recruit rather than the products they sell over time. Not all the MLMs are pyramid schemes, but it is just a matter of degree.
In case, you want to try one of the MLM offers, you can do is to look for your business registration with BBB, proper address and toll-free number. You also need a maximum number of friends and family to work. Finally, check the MLM material for all the red flags that are linked with the offerings:
- The fee to Start Your Business. If their business model is from selling products, then the fee for it would be inappropriate and unnecessary. Usually, these are billed for training and education that is made of marketing brochures.
- Make Big Money with Minimum Work. There are many things you can do to make maximum money with a little hard work. It is not possible for everyone to make that much money without hard work. Making money needs work.
- Purchases Encouraged Investment. Sometimes, MLM companies make you able to think that making purchases of products will advance your status and grow your business sales.
- High-Income Projections. There are many companies that emphasize on how much you make but rarely mention how you will make it. MLM opportunities proved that they are better than a side income.
- Money from Recruiting. If they recruit another distributor, then their products are driving the company. A company having just people but not products is not a company, but a group of people.
The Internet made it easy. Before, you had to visit people, or need to call them, to avail new opportunities. Face to face marketing is practiced, but is not so common. No one loves the strategy of having someone other, so they go online because they are all safe there. These create their sites with pictures, testimonials, and videos.
There is a phrase to be believed that, “Multi-Level Marketing and Network Marketing were invented as sanitized terms after Amway and others were charged with pyramiding”.
There need to be something for a business model, since some business icons like Donald Trump are also joining MLM parade.