Multi Level Marketing also known as MLM is a trap a lot of people call
into when looking for work from home. They hear about only needing to
pay a membership fee which is maybe $30-$50 a month so its not that bad.
The owners of the company are trying to lure you in by telling you that
you can make up to $5,000 dollars a week and its very easy to do. A lot
of them will even tell you that there is no selling involved. Now it is
the law that these companies put on their website that you are not
gaurenteed to make money (in fine print of course). A lot of MLM
companies have gotten sued over false claims that they have made so now
they need to put a disclaimer somewhere on the website. The problem is
with that is it is in fine print usually someone else on the page where
there are some people who just did not see it. Usually though in the
fine print the company will say something like, 80% of the Independent
Business Owners (IBO's) signed up with the company will not make
anything or up to $20.00 in their first year. Now I am not quoting that
it was just a guess from sites I have seen. It is somewhere around those
numbers though. Now there are those MLM IBO's that do well and make a
decent amount of cash. The problem is that is probably 1 in 1000 people
(I may be low balling it) that have signed up with the company. Also
these are the ones that are making a lot of their money from selling
books, cd's, conferences, etc. A lot of the time the people who do these
conferences and sell these items are the ones that are upper management
with the company. It is an extremely rare thing to be successful at
this and there have been a lot of people who have lost a lot of money
not just with the monthly fee but with the items that these "Successful"
people sell. They have been accused on news programs such as Dateline
NBC about how they make most of their money by selling these success
kits to IBO's that have just signed up. This company of course denied it
but we know that its a lie. Now let me explain a little bit how MLM
works. There is a company with products/services that they are offering.
They ask people to sign up for a business opportunity selling these
products/services. Then they also mention if you can sign people up to
work for their company you will get money off of their transactions as
well. Then the people they will sign up you will get a percentage of
their sales as well. So its just a giant pyramid scheme. Of course the
more people you sign up the more money you will make. In fact that is
where a large amount of the money you can earn will come from, making
money off of other people's sales. Of course you can make some money
selling these products/services but if you want to see the real money
you need to sign people up. This is a lot harder then it looks because
most people out there know not to sign up for any "Pyramid Scheme". If
you look hard enough you may be able to find someone interested but its
just not worth it with the little pay off you will get. As I have stated
before there is only a very small chance you will make it in this type
of business. What it really comes down to is are you good at scamming
people as well? That's what you need to do in order to be successful in
this field. You will also lose a lot of friends so you must be prepared
to handle that. Most people couldn't bring themselves to scam others.
Now I know that I may get criticized for this post because some people
claim to have made a lot of money and the company they are with is not a
scam. You know you may be selling a good product or service, but when
you are making claims that people will make all this money and then
putting a disclaimer in fine print and hidden pretty well you ARE
scamming other people!
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