How To Recognize A Pyramid Scheme Or Mlm
You must have come across such a message in your life and have ignored it. But there are people like mentioned in the above three bulletins, they become victims and eventually clicks on attacking links attached inside the mail content and boom, you’re hacked! With false advertisements and spammy materials, the USA has finally been tagged as ‘pyramid scam’.
If you want a product that an MLM sells, you have to buy it from an authorized MLM seller or distributor; you can't just go to a store or website to buy the product. The MLM industry on the whole offers a wide range of merchandise, such as supplements, makeup, candles, cookware, and cleaning products. If you’ve been to a party at a friend’s house that revolved around buying from a line of products, then you’ve probably been exposed to an MLM.
One must understand every bit of pyramid scheme history to understand it’s forming and get awareness from it. But how long can they attract more people into the network? After a while, there won’t be enough around them for recruitment so they won’t receive the expected results.
If you read this far it is because you are a stand up person truly looking to understand different perspectives or you are looking for how to punch holes and attack everything I am saying. I just please ask you read this to understand, not to reply. But we have learned these stigmas don’t go away with one to two sentence phrases that don’t truly dig through layers of context and perspective. If you have any more questions or would like me to write on anything else about the myths and confusions of this industry, please let me know. I can fight the fight for people to see things more clearly by being the loudest voice out there but I have learned education, perspective, and giving grace for those looking to understand is where my strong suit lies. #4 - Ponzi schemes requires more deposits than withdrawals in order to pay investors.
Traditional MLM programs are legal because there is a real product that is being sold through the channel. There is a growing rumble of discontent against multi-level marketing businesses. As well as a growing backlash from former MLM recruits, regulators are getting Anti-MLM involved, too. Unfortunately, however, these businesses that have been likened to legal pyramid schemes are unlikely to disappear altogether. Unlike MLM businesses, affiliate marketing programs cost nothing to join and don’t require that you recruit anyone into a network.
No one in network marketing should ever put their eggs in other people’s baskets. The only pay you can guarantee is the main commission you are promised to make on your own sales. This should be upfront in every company and no confusion about how much you make with what you sell. Gather all information regarding the company, its officers, and its products or services. Get written copies of the company's marketing plan, sales literature, contracts, etc.
If the company and its distributors make money primarily from the sale of products to end-users (and not boxes of product accumulating in a distributor's garage), it's OK. Participants are also encouraged to bring in or recruit others into the program as participants. While they may not be pressured to do so, signing up new contractors provides a financial incentive for participants, who receive a percentage of the sales of their recruits. Beware when the products or services are simply vehicles for recruitment.
It is illegal to take that away from them to give to another. Your commission from your sale is your commission on your sale- no matter what. Those terms are known up front and that will not change, ever. Resist the temptation to invest just because the people selling you the program are friends or are part of your religious or social organization. They may have been misled into believing that they could make large amounts of money in a short time.