MLM (Multi-level Marketing) representatives had approached and drawn many people with guarantees of incredible returns. Everything is introduced splendidly, and often without the notice of any losses; from the initial deposit, the ‘guaranteed’ profit to the procedures involved. The general principle guideline is, if it sounds like a pipe dream, it likely is. However, before you turn down the offer of a low-risk investment, become familiar with the characteristics of MLM.
1. The opening line to invite you will be along the lines of, “I have a great business chance for you” or “Invest a little and turn into an entrepreneur right away”. There is no real business opportunity without risk. It likewise requires time investment and money to set up. In any case, being an entrepreneur in almost no time? Certainly sounds pipe dream.
2. If you were to ask, “Is this a MLM program or pyramid scheme?” be ready for the answer, “NO”. Most representatives don’t unveil that they are indeed requesting you to enrol into a MLM program since there are many individuals who are careful about putting money in a MLM.
3. Pretty often, people who approach you with MLM opportunities are friends or family. The MLM business works on a hierarchy, the individual who joins the program will at that point need to recruit other individuals as his ‘down line’ to do all the selling. Since it is hard to convince a stranger to part with his money, the easiest people to recruit for MLMs are usually friends or relatives. Additionally, it is relatively easy to set up a “business appointment” with individuals you know.
4. In cases of family and friends, your relationship with them will be in question on the off chance that you don’t agree to accept the MLM package.
5. A carrot will be dangled in front your face to lure you further into enrolling into the program – would you like to drive that luxurious dream car and own a triple-storey bungalow inside the following two or so years? There will be guarantees of a fortune, in a generally brief time.
6. There are claims by these representatives that someone famous advocating or using the item, be it a big name or politician.
7. You will be given the example of an individual who made it “big” in the business, and with almost no work and has as of now have X number of people in his downline to “make a profit for him”. In certain cases, copies of cheques showing a high pay will be shared.
8. Their marketing efforts make the business seems easy to run and are for sure successful as the “item is incredible, it will sell itself”. No item is consistently going to sell itself, which is the main concern.
Money does not fall from the sky, hence, make sure that you are placing money in a legal business where the risks suit your appetite and you won’t be at danger of losing your money or friends and family. Keep in mind, if you have pay anything in advance before beginning a job, you are a client, not a worker. Along these lines, invest wisely.