If you have been considering options to start your own business, or even if you haven’t, there is a good chance that you have come across a multi level marketing business opportunity. These companies run infomercials all the time, and they also advertise heavily online, in magazines and in newspapers. Their claims of fast money and easy work are definitely enticing – after all, who doesn’t like the idea of working an hour or so a day and making tens of thousands of dollars at a time? But is multi level marketing a viable option for you? Could it be your first step on the road to easy street, or will it be the seeds for a financial disaster? There are several different factors that go into answering this question.
First and foremost, before you consider any multi level marketing opportunity, you have to make sure that it is not a scam. Many of them are. How can you tell the difference? Well, the first give away is a company that emphasizes recruiting new representatives to the ranks than they do selling the products. If the pitch contains lots of information about how you can make money by getting your family and friends on board, but is a little vague about what they are selling, then you should run in the other direction. You should also pay attention to the product itself. Is it reasonably priced? Many multi level marketing scams price their products so high that you have no hope of making a profit on the margin. Also, ask yourself about the market for the product. Is there a lot of competition? Is it something that seems like it could easily be sold in a retail store? If it is, then you have to ask yourself why the company isn’t selling it there rather than getting inexperienced sales people to go out and do the selling for them. Some things lend themselves well to a multi level marketing set up, but others don’t, and you’ll need to do your market research to learn the difference.
Next, assess your own abilities realistically. Despite what the multi level markers pitch might say, selling in this way is hard work. It requires a great deal of talent as a sales person and a great deal of time to get the business off the ground. You need to learn to make a good pitch for your product at appropriate times and how to close a sale. The vast majority of people lack the skills for successful multi level marketing. Do you have them? Further, do you have the time to commit to making the business grow? You can forget working an hour a day – you’re going to have to put blood, sweat and tears into this like you would any business. Do you have the time to give?
Answering these questions will help you decide if multi level marketing is really something you could succeed at. Don’t jump in without figuring them out.
Thursday, April 30, 2009
Monday, April 27, 2009
Multi Level Marketing and The Mannatech Story
There are plenty of stories around about multi level marketing opportunities gone bad and lots of multi level marketing groups that have turned out to be nothing more than one big scam. A frequent target of criticism among those against multi level marketing is the company Mannatech. Mannatech has been the subject of several lawsuits regarding both their sales practices and the validity of the claims they make about their products. The group is frequently charged to be cult like, and they are not afraid to mix religion into their recruitment messages. Learning the story of Mannatech is a good way to understand more about multi level marketing in general and how to spot a legitimate opportunity from one that will roll through your life like a tornado.
First, an introduction: Mannatech sells “nutritional supplements.” In particular, they stress a concept called “glyconutrition” which they claim can works at a cellular level to help you achieve good health. They claim that the nutrients they provide in their product cannot be produced in significant enough amounts by your body and that they cannot be received through diet alone. To back up their claims about their products, Mannatech has frequently claimed that the scientist behind the glyconutrition field won the Noble Peace Prize in 1994, and then later that he won a Noble Prize in 1999.
The problem with these claims is that they are so easily disprove. First, naturally, the Noble Peace Prize is not awarded for advances in medicine, and in 1994, that prize went the brokers of that years Middle East Peace Accord. In 1999, the no Noble Prize was awarded for glyconutrition – in fact, none ever has been. However, the company has indoctrinated its sales staff with this information, and they continue to use it as a sales tool, despite the fact that it is plainly incorrect.
Mannatech detractors say that the glyconutrition supplements that they are selling are nothing more than simple sugar pills. Mannatech is very careful on their company website to stress that these are nutritional supplements, but according to many court cases brought by former Mannatech reps and by Mannatech customers, behind the scene reps are taught to tell people that these pills can cure anything from migraines to Parkinson’s Disease. Their reps disseminate this information in person and online, while the head office is very careful to distance themselves from the claims on one hand while encouraging their reps to go out and spread it.
Is Mannatech a scam? There’s no middle ground in that question. Their reps are fiercely loyal, and their detractors consider them to be among the worst multi level marketing scams out there. Before you join their ranks, you should evaluate the program carefully and make sure it is right for you. There is plenty of information on the internet for both sides, so doing your homework should protect you from making the wrong decision for yourself and getting in over your head with Mannatech.
First, an introduction: Mannatech sells “nutritional supplements.” In particular, they stress a concept called “glyconutrition” which they claim can works at a cellular level to help you achieve good health. They claim that the nutrients they provide in their product cannot be produced in significant enough amounts by your body and that they cannot be received through diet alone. To back up their claims about their products, Mannatech has frequently claimed that the scientist behind the glyconutrition field won the Noble Peace Prize in 1994, and then later that he won a Noble Prize in 1999.
The problem with these claims is that they are so easily disprove. First, naturally, the Noble Peace Prize is not awarded for advances in medicine, and in 1994, that prize went the brokers of that years Middle East Peace Accord. In 1999, the no Noble Prize was awarded for glyconutrition – in fact, none ever has been. However, the company has indoctrinated its sales staff with this information, and they continue to use it as a sales tool, despite the fact that it is plainly incorrect.
Mannatech detractors say that the glyconutrition supplements that they are selling are nothing more than simple sugar pills. Mannatech is very careful on their company website to stress that these are nutritional supplements, but according to many court cases brought by former Mannatech reps and by Mannatech customers, behind the scene reps are taught to tell people that these pills can cure anything from migraines to Parkinson’s Disease. Their reps disseminate this information in person and online, while the head office is very careful to distance themselves from the claims on one hand while encouraging their reps to go out and spread it.
Is Mannatech a scam? There’s no middle ground in that question. Their reps are fiercely loyal, and their detractors consider them to be among the worst multi level marketing scams out there. Before you join their ranks, you should evaluate the program carefully and make sure it is right for you. There is plenty of information on the internet for both sides, so doing your homework should protect you from making the wrong decision for yourself and getting in over your head with Mannatech.
Saturday, April 25, 2009
Multi Level Marketing Defined
In the business world, no terms is more misunderstood than multi level marketing. It is an especially tricky area for entrepreneurs looking for an entry into the business world. There is a lot of misinformation out there about multi level marketing, and following the wrong advice could be costly, as it could scare you away from what is really a great business opportunity or it could lead you to invest in what turns out to be a scam. Your best bet is to understand what multi level marketing really is – and what it isn’t – so you can protect yourself and make an informed decision about your business opportunities.
First, consider a simple definition of multi level marketing. In essence, multi level marketing is not unlike a franchise system, except agents involved in multi level marketing generally operate outside of a particular location – like a chain restaurant – and instead do roving sales. In multi level marketing, a parent company has a group of products, and they hire individual representatives, “down stream” as it is typically referred to, to go out and sell those products. Often, the down stream reps purchase the products that the sell from the parent company, although in some cases they can receive stock up front and then split the profits. Down stream reps do not receive any kind of base salary. Their income instead comes in the form of sales.
You have almost certainly dealt with multi level marketing companies without even realizing it. If you have ever attended a party where a host gave you a spiel about kitchen equipment, make-up, lingerie, jewelry or some other kind of product, and then you purchased the product from the host, then you have seen multi level marketing in action. Typically, the people who host these parties receive a small amount of sample stock to show their guests, and then they collect orders, pass those on to the parent company and receive a portion of the profits from sales at the parties they have hosted. The share they receive and whether or not they had to pay for their samples differs from company to company.
Although many multi level marketing programs are entirely legitimate, there are ways these set ups can be exploitative. Most of these programs provide some kind of incentive for people to recruit new reps, but that opens the door for a pyramid scheme to develop. In a pyramid scheme, everyone makes their money by signing up new representatives to the company rather than for selling any products. If you are approached with a scheme that requires you to sign up new representatives and to get them to pay a join up fee, then chances are that you are dealing with an illegitimate multi level marketing plan that not only could end up costing you lost of money but that could also land you in jail.
If you keep an eye out for that important red flag, however, multi level marketing programs can be profitable and reliable ways for good sales people to make money.
First, consider a simple definition of multi level marketing. In essence, multi level marketing is not unlike a franchise system, except agents involved in multi level marketing generally operate outside of a particular location – like a chain restaurant – and instead do roving sales. In multi level marketing, a parent company has a group of products, and they hire individual representatives, “down stream” as it is typically referred to, to go out and sell those products. Often, the down stream reps purchase the products that the sell from the parent company, although in some cases they can receive stock up front and then split the profits. Down stream reps do not receive any kind of base salary. Their income instead comes in the form of sales.
You have almost certainly dealt with multi level marketing companies without even realizing it. If you have ever attended a party where a host gave you a spiel about kitchen equipment, make-up, lingerie, jewelry or some other kind of product, and then you purchased the product from the host, then you have seen multi level marketing in action. Typically, the people who host these parties receive a small amount of sample stock to show their guests, and then they collect orders, pass those on to the parent company and receive a portion of the profits from sales at the parties they have hosted. The share they receive and whether or not they had to pay for their samples differs from company to company.
Although many multi level marketing programs are entirely legitimate, there are ways these set ups can be exploitative. Most of these programs provide some kind of incentive for people to recruit new reps, but that opens the door for a pyramid scheme to develop. In a pyramid scheme, everyone makes their money by signing up new representatives to the company rather than for selling any products. If you are approached with a scheme that requires you to sign up new representatives and to get them to pay a join up fee, then chances are that you are dealing with an illegitimate multi level marketing plan that not only could end up costing you lost of money but that could also land you in jail.
If you keep an eye out for that important red flag, however, multi level marketing programs can be profitable and reliable ways for good sales people to make money.
Thursday, April 23, 2009
Questions to Ask Before Joining a Multi Level Marketing Organization
Multi level marketing opportunities – it seems like you can barely turn around without bumping into one of them, promising to make you rich beyond your wildest dreams overnight, without you having to lift a finger. They often sound like they could be too good to be true, and often, they are. Having said that, there are many multi level marketing organizations that are legitimate and really do offer entrepreneurs a good way to make in income. The problem then becomes – how do you tell them apart? Here are some questions you should consider before joining any multi level marketing groups.
The first question involves the top tier of the company. Who are they? What do you know about them? Are they the founders of the company? Many multi level marketing companies give you a song and dance about the company founder being some poor, down on the luck man or woman, who took a chance one day with little investment and now runs around with a fleet of private jets and vacation homes. Sounds a little suspicious, doesn’t it? Although it will be nice if that happens, what you really want to know is that the company is headed by business people who are willing to have an honest and realistic discussion about the company. Beware there, “I was once just like you,” pitch – it’s just emotional manipulation.
The next question regards the product you will be selling. First of all, if no one seems to concerned about the product, run away. That is a pyramid scam, and getting caught up in it is costly and illegal. Once you know what the product is, do your market research. Is there a demand for it? Who are your competitors? If it would sell well in a normal retail environment, why isn’t the product placed there? This research will help you determine if this plan could really be a money maker for you.
Next, find out more about promotion responsibilities. Is the company actively promoting the product, as a franchise would, or do you have to cover all advertising and promotion costs yourself? That could get costly fast, and send your budget well into the red.
Last but not least, figure out when you will see a return on your investment. If the company gives you a lot of talk about long term visions, turn and walk away. There’s no reason you should wait for years for a return on an investment in this kind of venture. You should be looking for something in which you could start making your money back within a few weeks of starting to sell. If things are going to take longer, either the initial investment is out of whack or the program is one that is destined to fail.
Answering these questions will help you clear up any confusion you have about multi level marketing programs and help you zero in on an opportunity that is right for you or one that is for the birds.
The first question involves the top tier of the company. Who are they? What do you know about them? Are they the founders of the company? Many multi level marketing companies give you a song and dance about the company founder being some poor, down on the luck man or woman, who took a chance one day with little investment and now runs around with a fleet of private jets and vacation homes. Sounds a little suspicious, doesn’t it? Although it will be nice if that happens, what you really want to know is that the company is headed by business people who are willing to have an honest and realistic discussion about the company. Beware there, “I was once just like you,” pitch – it’s just emotional manipulation.
The next question regards the product you will be selling. First of all, if no one seems to concerned about the product, run away. That is a pyramid scam, and getting caught up in it is costly and illegal. Once you know what the product is, do your market research. Is there a demand for it? Who are your competitors? If it would sell well in a normal retail environment, why isn’t the product placed there? This research will help you determine if this plan could really be a money maker for you.
Next, find out more about promotion responsibilities. Is the company actively promoting the product, as a franchise would, or do you have to cover all advertising and promotion costs yourself? That could get costly fast, and send your budget well into the red.
Last but not least, figure out when you will see a return on your investment. If the company gives you a lot of talk about long term visions, turn and walk away. There’s no reason you should wait for years for a return on an investment in this kind of venture. You should be looking for something in which you could start making your money back within a few weeks of starting to sell. If things are going to take longer, either the initial investment is out of whack or the program is one that is destined to fail.
Answering these questions will help you clear up any confusion you have about multi level marketing programs and help you zero in on an opportunity that is right for you or one that is for the birds.
Monday, April 20, 2009
No College Degree? Work From Home!
More and more jobs out there are looking for educated, professional people that have all sorts of degrees and papers.
But, there are a lot of people out there who decided not to jump on the college band wagon and try their luck elsewhere.
Now, a lot of these people are having a hard time landing jobs because they have no papers. High school students also
are not having much luck nowadays in the job market. But, there is still one place where you can get a job without even
a high school diploma or college degree: the Internet.
Although it may be discouraging to go out and look for a good, solid job without a college degree, there are some great
opportunities available. These can be found on the World Wide Web. Though it would be more rewarding to have a degree,
an Internet job can still make you some pretty good cash. You will not be able to earn as much as a full-time job or
support a family, but you can still make money.
Writing is a good way to make money online. There are lots of companies and individuals who need people to write things
ranging from one-page articles to blogs to scripts and stories. This does require some skills such as basic Word Processing,
good grammar, communication, and spelling. You also much have full access to the Internet. It is a good idea to ask
yourself if you will truly be dedicated to your job. If not, then do not accept the position. Also, you must have a good
deal of time on your hands. Deadlines are a key thing for Internet writing jobs. You must have the skills and dedication
to get the job done accurately and in a timely manner. You must make your writing interesting. A good rule of thumb for
this is that if it is boring for you to write, then it will be boring for the reader, so give it some zazz!
Surveys are also a good idea for Internet income. These are an easy way to get some cash. You must register with the
site and have a login and password. If you are asked for your credit card or social security number, do not give these
out! You should not have to pay or give out this sort of information for a job. Once you have a login name and password,
you will be able to start working. Fill out as many paid surveys as you can in one day. Sign up for daily e-mail alerts
for new surveys, as there usually are fresh ones created each day. Typically, you will receive about fifty cents or two
dollars per survey and have to wait until you have made at least twenty-five dollars to being collecting payment.
These are just a few examples of how you can make money online without that degree. No special skills or education papers
or requirements will exist. There also will be no age or GPA limits. This is one of the best ways to make some extra money.
This type of job will never make you rich, no matter how long you work or how many testimonials you have read. Nevertheless,
work from home jobs are a great opportunity for degreeless folks!
But, there are a lot of people out there who decided not to jump on the college band wagon and try their luck elsewhere.
Now, a lot of these people are having a hard time landing jobs because they have no papers. High school students also
are not having much luck nowadays in the job market. But, there is still one place where you can get a job without even
a high school diploma or college degree: the Internet.
Although it may be discouraging to go out and look for a good, solid job without a college degree, there are some great
opportunities available. These can be found on the World Wide Web. Though it would be more rewarding to have a degree,
an Internet job can still make you some pretty good cash. You will not be able to earn as much as a full-time job or
support a family, but you can still make money.
Writing is a good way to make money online. There are lots of companies and individuals who need people to write things
ranging from one-page articles to blogs to scripts and stories. This does require some skills such as basic Word Processing,
good grammar, communication, and spelling. You also much have full access to the Internet. It is a good idea to ask
yourself if you will truly be dedicated to your job. If not, then do not accept the position. Also, you must have a good
deal of time on your hands. Deadlines are a key thing for Internet writing jobs. You must have the skills and dedication
to get the job done accurately and in a timely manner. You must make your writing interesting. A good rule of thumb for
this is that if it is boring for you to write, then it will be boring for the reader, so give it some zazz!
Surveys are also a good idea for Internet income. These are an easy way to get some cash. You must register with the
site and have a login and password. If you are asked for your credit card or social security number, do not give these
out! You should not have to pay or give out this sort of information for a job. Once you have a login name and password,
you will be able to start working. Fill out as many paid surveys as you can in one day. Sign up for daily e-mail alerts
for new surveys, as there usually are fresh ones created each day. Typically, you will receive about fifty cents or two
dollars per survey and have to wait until you have made at least twenty-five dollars to being collecting payment.
These are just a few examples of how you can make money online without that degree. No special skills or education papers
or requirements will exist. There also will be no age or GPA limits. This is one of the best ways to make some extra money.
This type of job will never make you rich, no matter how long you work or how many testimonials you have read. Nevertheless,
work from home jobs are a great opportunity for degreeless folks!
Saturday, April 18, 2009
Need A Second Job? Work At Home
In today's economy, sometimes one job is not enough. Not everyone is involved in a Union with a high-paying
career. Lots of families across the United States are struggling to make ends meet. Even with a high-paying
job, you still may not be making enough money for all your wants and needs. Furthermore, a lot of people do not
have the time or energy to work a second job. Work-at-home jobs are a great solution to this predicament.
Why work at home? Working online is a great way to earn a little extra cash. It's fast and easy. There is no
extensive training or knowledge required for these types of jobs. All you need for these positions is a little
computer knowledge and Internet access. It is best to know a little about Microsoft Word as many of these jobs
involve writing of some sort. So, if you have the time, dedication, and need to succeed, work at home.
What are the benefits? Work at home jobs are very rewarding. First of all, they save you money on gas. Driving
around to one job every day is expensive enough. With a work-at-home job, you never have to leave your house.
You can set your own hours. If you are working two jobs or even looking for that second job, it can be very
challenging to find time to do everything. With a work-at-home job, there are no shifts and time limitations
except for deadlines. If you use your time wisely, all deadlines can easily be met. You can work early in the
morning or all through the night; it's your choice.
Why not a real job? If you are working one job already, it can be very hard for you or you potential employer
to find a permanent shift that works for you and the company. In that case, it would also increase your chances
of your application being rejected. Employers look for flexibility. Work-at-home jobs are great for time
restraints because you will never be asked when you can work by an Internet employer. It does not matter to
them when you work as long as you make the deadline. You will save money on gas as well. This is always a good
thing. Also, with a work-at-home job, there is no risk of losing your job over an argument with a customer.
You will not be working directly with clients in most cases, so you do not have to put on that false smile.
Work-at-home jobs are very beneficial to the second-job seeker. They will prove to be very convenient and easy
to work with. Furthermore, you will need only a few very basic qualifications for one of these positions. There
are, though, a few disadvantages. One major disadvantage is that you will not make huge profit with one of
these jobs. These are good for those that only need a little bit of extra money. If you are searching for a job
that will make you rich, this is not the one. Also, sometimes these jobs can be a little overwhelming and
frustrating because it appears that you are doing a lot of work with little pay. But, if you are persistent and
willing to work diligently, you will make some good money. So, if you are a second-job seeker with a little
extra time, work at home.
career. Lots of families across the United States are struggling to make ends meet. Even with a high-paying
job, you still may not be making enough money for all your wants and needs. Furthermore, a lot of people do not
have the time or energy to work a second job. Work-at-home jobs are a great solution to this predicament.
Why work at home? Working online is a great way to earn a little extra cash. It's fast and easy. There is no
extensive training or knowledge required for these types of jobs. All you need for these positions is a little
computer knowledge and Internet access. It is best to know a little about Microsoft Word as many of these jobs
involve writing of some sort. So, if you have the time, dedication, and need to succeed, work at home.
What are the benefits? Work at home jobs are very rewarding. First of all, they save you money on gas. Driving
around to one job every day is expensive enough. With a work-at-home job, you never have to leave your house.
You can set your own hours. If you are working two jobs or even looking for that second job, it can be very
challenging to find time to do everything. With a work-at-home job, there are no shifts and time limitations
except for deadlines. If you use your time wisely, all deadlines can easily be met. You can work early in the
morning or all through the night; it's your choice.
Why not a real job? If you are working one job already, it can be very hard for you or you potential employer
to find a permanent shift that works for you and the company. In that case, it would also increase your chances
of your application being rejected. Employers look for flexibility. Work-at-home jobs are great for time
restraints because you will never be asked when you can work by an Internet employer. It does not matter to
them when you work as long as you make the deadline. You will save money on gas as well. This is always a good
thing. Also, with a work-at-home job, there is no risk of losing your job over an argument with a customer.
You will not be working directly with clients in most cases, so you do not have to put on that false smile.
Work-at-home jobs are very beneficial to the second-job seeker. They will prove to be very convenient and easy
to work with. Furthermore, you will need only a few very basic qualifications for one of these positions. There
are, though, a few disadvantages. One major disadvantage is that you will not make huge profit with one of
these jobs. These are good for those that only need a little bit of extra money. If you are searching for a job
that will make you rich, this is not the one. Also, sometimes these jobs can be a little overwhelming and
frustrating because it appears that you are doing a lot of work with little pay. But, if you are persistent and
willing to work diligently, you will make some good money. So, if you are a second-job seeker with a little
extra time, work at home.
Wednesday, April 15, 2009
Multi Level Marketing Wake-Up Call – What You Need to Know
Is that multi level marketing business opportunity that has come your way a real, viable option, or is it just a scam? Chances are that it sounds pretty tempting and like it can’t fail. In reality, multi level marketers always know all the right buttons to push and they’re excellent at convincing people that a destined to fail idea is really a golden opportunity. Before you pay that sign up fee and sign on the dotted line, here are the things you need to know about multi level marketing. These facts may make you turn around and run for the door.
The story of the founding the multi level marketing company for which you want to sign up is likely to be some variation of the “American dream.” The founder of the company will likely be presented as someone who was down on their luck and who took the last little bit of money they had and built it into an empire. Now they want to teach you to do the same, so you can live the good life while barely having to work for it. The reality of the situation is really quite different. Instead of barely working, you have to work extremely hard to make in the world of multi level marketing. No way will you succeed working for an hour or two every day as they say in their pitches. No way do the sales just start rolling into you like magic. You need to put in your blood, sweat and tears, just like any other business. In fact, you may have to put in more than a normal business.
This fact brings up another good point about multi level marketing businesses: the notion that a lot of people getting involved in them are hoping to get rich quick without working hard. Is the chance to avoid work ever a good, solid reason for starting a business? It sounds more like a recipe for failure, and even if you’re not the one of the ones who is joining a multi level marketing program in hopes of dodging hard work, the fact remains that many are. They have succeeding in giving these organizations a bad name, and so you will be met with that much more resistance.
This resistance is the last part of the wake up call about multi level marketing. When they are making their pitches, multi level marketers make it sound like you’ll fall over backwards into sales. They also assure you that your family and friends will LOVE to be your customers. Typically, however, your sales tactics will cause tension in your relationships. They’re not likely to receive a warmer welcome from strangers either. Making sales and convincing people to join multi level marketing plans is really difficult, and for some people who don’t have a thick skin, the process can be extremely unpleasant.
Multi level marketing can and has worked for many people, but you need to evaluate the situation honestly before jumping in for the best chance of success.
The story of the founding the multi level marketing company for which you want to sign up is likely to be some variation of the “American dream.” The founder of the company will likely be presented as someone who was down on their luck and who took the last little bit of money they had and built it into an empire. Now they want to teach you to do the same, so you can live the good life while barely having to work for it. The reality of the situation is really quite different. Instead of barely working, you have to work extremely hard to make in the world of multi level marketing. No way will you succeed working for an hour or two every day as they say in their pitches. No way do the sales just start rolling into you like magic. You need to put in your blood, sweat and tears, just like any other business. In fact, you may have to put in more than a normal business.
This fact brings up another good point about multi level marketing businesses: the notion that a lot of people getting involved in them are hoping to get rich quick without working hard. Is the chance to avoid work ever a good, solid reason for starting a business? It sounds more like a recipe for failure, and even if you’re not the one of the ones who is joining a multi level marketing program in hopes of dodging hard work, the fact remains that many are. They have succeeding in giving these organizations a bad name, and so you will be met with that much more resistance.
This resistance is the last part of the wake up call about multi level marketing. When they are making their pitches, multi level marketers make it sound like you’ll fall over backwards into sales. They also assure you that your family and friends will LOVE to be your customers. Typically, however, your sales tactics will cause tension in your relationships. They’re not likely to receive a warmer welcome from strangers either. Making sales and convincing people to join multi level marketing plans is really difficult, and for some people who don’t have a thick skin, the process can be extremely unpleasant.
Multi level marketing can and has worked for many people, but you need to evaluate the situation honestly before jumping in for the best chance of success.
Monday, April 13, 2009
Multi Level Marketing Scams – How to Protect Yourself
For the self employed, navigating the topic of multi level marketing business opportunities can be a tricky one. Although many multi level marketing companies are legitimate and can be a good way to make money, there are others out there that cost you both financially and legally. How can you tell the difference? There are two major red flags to watch out for when it comes to multi level marketing, and if you can keep an eye out for them, you will be able to effectively protect yourself from the scammers.
First things first, however: what is multi level marketing? In many ways, multi level marketing is a lot like the franchise set up that many of your favorite chain restaurants operate under. The difference is that rather than being limited to a single location, representatives of a multi level company perform sales on a roving basis – they move around and sell any place they can, rather than setting up a single shop. These representatives, also often called “down stream reps,” buy products from the parent company and then sell them on to stores or private individuals. The exact nature of the financial arrangement between the parent company and the down stream rep can differ from group to group, but usually there is a profit split on a pre-determined percentage basis. There is usually also some incentive for down stream reps to recruit new down stream reps, and they often receive a percentage of the sales made by anyone they recruit.
It is this last part of multi level marketing companies that can be the first red flag. Although most multi level companies do provide this kind of recruitment incentive, some companies rely exclusively on recruitment to make money. Down stream reps recruit new representatives, and collect a joining fee from them (or collect money by selling them merchandise that they are supposed to then sell on), and then no actual selling of products happens. The whole business thrives on the recruitment of new members and the collection of membership fees. This is called a pyramid scam, and it is illegal. If you are investigating a company and it seems like you are unlikely to make any money from actual product sales, stay away.
The second red flag has to do with the product prices you get from the parent company. Some scammers set themselves up as a multi level marketing business and present products to their downstream reps at prices that would never allow them to clear a profit. If the prices you are being offered by the parent company are extremely high, and you doubt that you will be able to mark up the prices at all to resale the goods, you’ve likely stumbled on a scam. These scammers typically collect all the money they can from people – often not even delivering the goods that their “reps” purchase from them – and then they close up shop and disappear, usually reappearing under a new name a few weeks later to perpetrate the scam again. Essentially, multi level marketing is a business like any other, and if it sounds too good to be true, it probably is.
First things first, however: what is multi level marketing? In many ways, multi level marketing is a lot like the franchise set up that many of your favorite chain restaurants operate under. The difference is that rather than being limited to a single location, representatives of a multi level company perform sales on a roving basis – they move around and sell any place they can, rather than setting up a single shop. These representatives, also often called “down stream reps,” buy products from the parent company and then sell them on to stores or private individuals. The exact nature of the financial arrangement between the parent company and the down stream rep can differ from group to group, but usually there is a profit split on a pre-determined percentage basis. There is usually also some incentive for down stream reps to recruit new down stream reps, and they often receive a percentage of the sales made by anyone they recruit.
It is this last part of multi level marketing companies that can be the first red flag. Although most multi level companies do provide this kind of recruitment incentive, some companies rely exclusively on recruitment to make money. Down stream reps recruit new representatives, and collect a joining fee from them (or collect money by selling them merchandise that they are supposed to then sell on), and then no actual selling of products happens. The whole business thrives on the recruitment of new members and the collection of membership fees. This is called a pyramid scam, and it is illegal. If you are investigating a company and it seems like you are unlikely to make any money from actual product sales, stay away.
The second red flag has to do with the product prices you get from the parent company. Some scammers set themselves up as a multi level marketing business and present products to their downstream reps at prices that would never allow them to clear a profit. If the prices you are being offered by the parent company are extremely high, and you doubt that you will be able to mark up the prices at all to resale the goods, you’ve likely stumbled on a scam. These scammers typically collect all the money they can from people – often not even delivering the goods that their “reps” purchase from them – and then they close up shop and disappear, usually reappearing under a new name a few weeks later to perpetrate the scam again. Essentially, multi level marketing is a business like any other, and if it sounds too good to be true, it probably is.
Friday, April 10, 2009
Multi Level Marketing – A Problem of Structure or of People?
When it comes to multi level marketing, doubters always point to the structure of the business as the reason these programs are doomed to failure. First of all, multi level marketing programs lend themselves to becoming pyramid schemes – in fact, many multi level marketing organizations are nothing more than exactly that. Others point to the fact that even a legitimate multi level marketing business opportunity is destined to go bust because the very nature of the set up causes the market to become saturated with more sellers than buyers. Since reps recruit new members from their circle of family and friends, suddenly everyone you know is selling, and there is no one left to buy.
These all sound like logical arguments to approach multi level marketing with a great deal of skepticism and doubt. But the fact remains that some multi level marketing outfits are indeed profitable, thriving, legitimate businesses, so there seems to be some flaw to blaming the sky high failure rate of multi level marketing get ups on the structure alone. So, what else could be causing the problem? The real root of the issue here might be the people that tend to jump at these multi level opportunities.
To explore this issue, we have to leave aside the subject of multi level businesses that are out and out scams. These will fail eventually, and people will lose financially and personally when they do. But taking the multi level marketing programs that have the potential to be successful – why such a rate of failure? Well, much of this comes down to the people that are lured into multi level marketing deals. People with a lot of business experience have a natural distrust of multi level marketing deal, even if at their base, the best multi level businesses are hardly different from a franchise. What that means is that there’s not a lot of business skills and know how flowing into multi level marketing deals. The reps that many of these programs end up with are wet behind the ears or worse. Many of them have a history of failing at business and a tendency to flit from one get rich quick scheme to the next. They simply may not have the knowledge to capitalize on the legitimate opportunities a multi level marketing scheme can offer.
What are some of the rookie mistakes these people tend to make? They often overestimate their own potential in the business, and in turn, they overestimate the value of the product when they are trying to sell to customers and the value of the opportunity when they are trying to recruit new reps. They often fail to figure out when is the time to try and make a sale and when is not (like their neighbor’s cookout). Further, they may simply not know how to sell, which is at the very crux of making it in multi level marketing, making their failure the only sure bet. If you’re considering joining a multi level marketing program, be honest about your abilities, so you don’t end up losing more money than you make.
These all sound like logical arguments to approach multi level marketing with a great deal of skepticism and doubt. But the fact remains that some multi level marketing outfits are indeed profitable, thriving, legitimate businesses, so there seems to be some flaw to blaming the sky high failure rate of multi level marketing get ups on the structure alone. So, what else could be causing the problem? The real root of the issue here might be the people that tend to jump at these multi level opportunities.
To explore this issue, we have to leave aside the subject of multi level businesses that are out and out scams. These will fail eventually, and people will lose financially and personally when they do. But taking the multi level marketing programs that have the potential to be successful – why such a rate of failure? Well, much of this comes down to the people that are lured into multi level marketing deals. People with a lot of business experience have a natural distrust of multi level marketing deal, even if at their base, the best multi level businesses are hardly different from a franchise. What that means is that there’s not a lot of business skills and know how flowing into multi level marketing deals. The reps that many of these programs end up with are wet behind the ears or worse. Many of them have a history of failing at business and a tendency to flit from one get rich quick scheme to the next. They simply may not have the knowledge to capitalize on the legitimate opportunities a multi level marketing scheme can offer.
What are some of the rookie mistakes these people tend to make? They often overestimate their own potential in the business, and in turn, they overestimate the value of the product when they are trying to sell to customers and the value of the opportunity when they are trying to recruit new reps. They often fail to figure out when is the time to try and make a sale and when is not (like their neighbor’s cookout). Further, they may simply not know how to sell, which is at the very crux of making it in multi level marketing, making their failure the only sure bet. If you’re considering joining a multi level marketing program, be honest about your abilities, so you don’t end up losing more money than you make.
Tuesday, April 7, 2009
Multi Level Marketing Scams – How to Spot Them
Multi level marketing opportunities aren’t always scam – but a lot of them are. Getting involved in the wrong program can have far reaching implications for you. It can be a drag on your financially and a drag on you personally. In fact, for many people, the personal repercussions of being involved in a multi level marketing scam last much longer than the financial ones. You can avoid the headaches and heartaches by making sure the program that you want to get involved with is legitimate. Here are some ways to tell the good multi level marketing programs from the bad.
First, rely on word of mouth. There are many multi level companies whose names and reputations you know, for good reasons and for bad reasons. Don’t discount the things you have heard about a particular company or business just because you get caught up in a pitch. Where there’s smoke, there’s usually fire when it comes to multi level marketing groups, so if you’ve heard a company is hard to work for, has a product that doesn’t sell or is just a pyramid scam, walk away. No matter how much they tell you that their detractors are just losers who couldn’t capitalize on the potential in the business.
Next, take a good, hard look at the pitch they make to you. Does it sound like the bulk of your business will involve sales of a product or does it sound like your main job is to sign up new recruits? Often with multi level marketing, the product takes a back seat, and you may walk away from the pitch not really knowing exactly what you would be selling. You may have some vague notion about selling health supplements, travel or some other product, but you won’t really be able to define it. If the real money in the business comes from signing up reps, then that is a pyramid scam and not a business. You should definitely not get involved.
Also, pay close attention to the pitch. Does it even make sense at all? Do you really, in your heart of hearts, believe it will be as easy as they say? Do you really believe that your friends and family will jump at the chance to be your customers/victims? Do you really think that for no time commitment you will be able to pull in tens of thousands of dollars every month? If it really worked like that, everyone would be doing it. Don’t buy the baloney about everyone else not recognizing the opportunity – if it was legitimate and worked like that, word would get out. People would be doing it. If the pitch sounds unrealistic, be very wary about taking things any further.
Last but not least, trust your instincts. If you wipe away all of the excitement you may feel about a new business opportunity, your gut will tell you if it is really right for you or not. Listen carefully to what your feelings are telling you – you could save yourself a lot of money and trouble.
First, rely on word of mouth. There are many multi level companies whose names and reputations you know, for good reasons and for bad reasons. Don’t discount the things you have heard about a particular company or business just because you get caught up in a pitch. Where there’s smoke, there’s usually fire when it comes to multi level marketing groups, so if you’ve heard a company is hard to work for, has a product that doesn’t sell or is just a pyramid scam, walk away. No matter how much they tell you that their detractors are just losers who couldn’t capitalize on the potential in the business.
Next, take a good, hard look at the pitch they make to you. Does it sound like the bulk of your business will involve sales of a product or does it sound like your main job is to sign up new recruits? Often with multi level marketing, the product takes a back seat, and you may walk away from the pitch not really knowing exactly what you would be selling. You may have some vague notion about selling health supplements, travel or some other product, but you won’t really be able to define it. If the real money in the business comes from signing up reps, then that is a pyramid scam and not a business. You should definitely not get involved.
Also, pay close attention to the pitch. Does it even make sense at all? Do you really, in your heart of hearts, believe it will be as easy as they say? Do you really believe that your friends and family will jump at the chance to be your customers/victims? Do you really think that for no time commitment you will be able to pull in tens of thousands of dollars every month? If it really worked like that, everyone would be doing it. Don’t buy the baloney about everyone else not recognizing the opportunity – if it was legitimate and worked like that, word would get out. People would be doing it. If the pitch sounds unrealistic, be very wary about taking things any further.
Last but not least, trust your instincts. If you wipe away all of the excitement you may feel about a new business opportunity, your gut will tell you if it is really right for you or not. Listen carefully to what your feelings are telling you – you could save yourself a lot of money and trouble.
Saturday, April 4, 2009
Multi Level Marketing or Pyramid Scheme – How To Know
Mention the words “multi level marketing” and everyone will tell you, “pah, it’s nothing but a pyramid scheme!” But is that really true? Well, it’s is definitely the right reaction to have sometimes. Many, many multi level marketing opportunities are pyramid schemes. However, that doesn’t mean they all are, and there is ample evidence that this is the case. Brands like Pampered Chef, Avon and Mary Kay are all run in the multi level marketing format, and they are respected and successful businesses. So how do you spot the difference? Here are the things you should look for that will let you know that idea being pitched to you is not a viable business opportunity but rather a pyramid scheme that could cost you big time in the long run.
Listen carefully when you’re being pitched a multi level marketing opportunity. If you set aside all of the promises of wealth and the endless success stories from people “just like you,” you may find that many multi level marketing pitches are essentially pretty superficial and free of any real details. What exactly does the company sell? How exactly do they sell it? You may come to realize that what this company is focused on is recruiting people, getting them to pay a membership fee, and then getting them to recruit more people – and so on and so forth. When a company doesn’t have a real product that they are concerned with selling, you are definitely dealing with a pyramid scam.
The important thing here to note is that you shouldn’t be confused by the fact that the company does actually have a product. Most multi level marketing companies have something they profess to sell, from travel deals to nutritional supplements. But is that really their bread and butter? They may tell you it is, but take a closer look. Are the products you have to purchase to re-sell so highly priced that there is no way you could turn a profit on them? Is the line extremely limited? Does it seem like there really is a market for that good? Sometimes the “product” is just something they keep around to distract investigators who are trying to shut down pyramid scams.
What about the sales materials you are given and the sales training they provide to you. Are they teaching you about the product? Are they telling you to try to turn every customer into a representative like yourself? A good company will have an easy time finding reps because they sell products that are of good quality and people will naturally want to sell them themselves. A bad company will need to recruit right out of the gate will not really care what you think of the products or if you even buy them at all.
Last but not least, you may wonder what the harm actually is in a pyramid scam. Well, they’re destined to fail, they prey on those who can least afford to take part, and they’re illegal. All good reasons to protect yourself from getting involved.
Listen carefully when you’re being pitched a multi level marketing opportunity. If you set aside all of the promises of wealth and the endless success stories from people “just like you,” you may find that many multi level marketing pitches are essentially pretty superficial and free of any real details. What exactly does the company sell? How exactly do they sell it? You may come to realize that what this company is focused on is recruiting people, getting them to pay a membership fee, and then getting them to recruit more people – and so on and so forth. When a company doesn’t have a real product that they are concerned with selling, you are definitely dealing with a pyramid scam.
The important thing here to note is that you shouldn’t be confused by the fact that the company does actually have a product. Most multi level marketing companies have something they profess to sell, from travel deals to nutritional supplements. But is that really their bread and butter? They may tell you it is, but take a closer look. Are the products you have to purchase to re-sell so highly priced that there is no way you could turn a profit on them? Is the line extremely limited? Does it seem like there really is a market for that good? Sometimes the “product” is just something they keep around to distract investigators who are trying to shut down pyramid scams.
What about the sales materials you are given and the sales training they provide to you. Are they teaching you about the product? Are they telling you to try to turn every customer into a representative like yourself? A good company will have an easy time finding reps because they sell products that are of good quality and people will naturally want to sell them themselves. A bad company will need to recruit right out of the gate will not really care what you think of the products or if you even buy them at all.
Last but not least, you may wonder what the harm actually is in a pyramid scam. Well, they’re destined to fail, they prey on those who can least afford to take part, and they’re illegal. All good reasons to protect yourself from getting involved.
Wednesday, April 1, 2009
Multi Level Marketing Groups – Businesses or Cults?
Multi level marketing gets a resoundingly bad rap in the business world. Normally, detractors point to an inherently flawed business structure that saturates the market to the point that everyone involved in the project fails. They also often point to the fact that many multi level marketing organizations are nothing more than glorified pyramid schemes operating under a different name. But more and more, people are leveling other kinds of charges at multi level marketing groups; questioning the way they prey upon people emotionally and reel them in. It all begs the question, are multi level marketing groups real businesses or are they cults? The answer might surprise you.
First things first: there are some legitimate multi level marketing business opportunities out there at allow you to make some money without having to buy into a bunch of mumbo jumbo about the company. These businesses sell real, quality products are reasonable price and value the sales over the recruitment. They also give you adequate support without making unreasonable demands of you. These are businesses like any other and can’t be tarred with the cult brush.
But then there are the other kinds of multi level marketing programs – the ones that have a cult like hold on their “reps.” These companies are fairly easy to spot. Look at the way the pitch is made. First, the pitch usually begins with some kind of story about the company founder – a down on their luck man or woman who took the last few dollars they had in their bank account and decided to take a chance. This chance naturally paid off with wealth beyond their wildest dreams; a life of private jets, vacations homes, sports cars and exotic vacations, all while barely working at all. Then, the pitch goes on to suggest all of this could be yours, too. You, too, could have fabulous wealth while working less than an hour a day, if you’re just smart enough to take advantage of this opportunity. For the doubters in the room, the pitch usually suggests that they lack vision, and that they just don’t have the business sense that the people who are lapping it up do.
Sometimes, this is enough, but sometimes the indoctrination continues. The multi level marketers tell people that if their friends and family are unsupportive of this new business venture, then they’re maybe they’re really not as close to you as you thought. They often mix religious messages into their marketing programs, and they know how to spot the weak link. In reality, multi level marketing programs have a long history of not only being detrimental to a person’s financial well being, but they also have a history of decimating their personal life and relationships as well.
For all of these reasons, you must approach membership in a multi level marketing group with extreme caution. There are of course reputable groups out there, but you have to do your homework to make sure you don’t get caught up in a bad one. The repercussions for you could be serious and long lasting.
First things first: there are some legitimate multi level marketing business opportunities out there at allow you to make some money without having to buy into a bunch of mumbo jumbo about the company. These businesses sell real, quality products are reasonable price and value the sales over the recruitment. They also give you adequate support without making unreasonable demands of you. These are businesses like any other and can’t be tarred with the cult brush.
But then there are the other kinds of multi level marketing programs – the ones that have a cult like hold on their “reps.” These companies are fairly easy to spot. Look at the way the pitch is made. First, the pitch usually begins with some kind of story about the company founder – a down on their luck man or woman who took the last few dollars they had in their bank account and decided to take a chance. This chance naturally paid off with wealth beyond their wildest dreams; a life of private jets, vacations homes, sports cars and exotic vacations, all while barely working at all. Then, the pitch goes on to suggest all of this could be yours, too. You, too, could have fabulous wealth while working less than an hour a day, if you’re just smart enough to take advantage of this opportunity. For the doubters in the room, the pitch usually suggests that they lack vision, and that they just don’t have the business sense that the people who are lapping it up do.
Sometimes, this is enough, but sometimes the indoctrination continues. The multi level marketers tell people that if their friends and family are unsupportive of this new business venture, then they’re maybe they’re really not as close to you as you thought. They often mix religious messages into their marketing programs, and they know how to spot the weak link. In reality, multi level marketing programs have a long history of not only being detrimental to a person’s financial well being, but they also have a history of decimating their personal life and relationships as well.
For all of these reasons, you must approach membership in a multi level marketing group with extreme caution. There are of course reputable groups out there, but you have to do your homework to make sure you don’t get caught up in a bad one. The repercussions for you could be serious and long lasting.
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