Your best defense against getting involved in illegal schemes and the “losers” calling themselves Multi-Level Marketing (MLM) Programs, is knowing what to look for, thereby, knowing what to avoid.
You will find here some “guidelines” which you can use to avoid the
“Rip-Offs”, Schemes, and “Losers”. These important “guidelines” enhance the chances of picking the right company in MLM. Use this as your MLM Checklist before making any final decision.
1. Avoid the many “Get Rich Quick” offers like “Earn P50,000 Over The Week-End”, or something like that. Legitimate Multi-Level businesses and consultants are at the heart of a vast communications network and have never… repeat NEVER heard of anybody earning vast amounts of money with such offers.
2. Marketing products through the MLM concept is one thing, a “chain letter” is another. Even if the chain-letter has a product such as a report, it is still considered a chain-letter by Postal Authorities and may get you the wrong kind of attention. Some even say “this one is LEGAL… Refer to Postal Statute No.XXXX”. Don’t buy it! A “chain-letter” is a Chain- Letter period! If you must send the name or names on the 1etter a sum of money and add your name, expecting others to send you money, you will be involved in a “Chain-Letter”.
3. Avoid Pyramid Schemes. These schemes are a problem to MLM because many people do not know the difference between a pyramid plan and a merchandise based marketing plan. You can spot a pyramid plan by:
A. They offer rewards for the act of recruiting.
B. Large inventory purchases are required to get in their programs.
C. They lack interest in retailing to the consumer and they make deceptive claims designed to defraud people of money. Legitimate MLM companies require new distributors to purchase only one or a few items of what they want and the product is probably one they would buy even if the business opportunity was not offered or available.
4. Avoid plans with more than seven levels. Firms using more than 7 levels do so to make the profits look fantastic at the last few levels. These are usually the ones that pay low commissions and offer products that are over priced.
5. Avoid programs offering to print and mail brochures for you. Because there is no way for you to know how many will actually be mailed. Also, if any are mailed, is usually by “Bulk Rate” which is the most ineffective way to send them out .
6. Avoid programs with complicated commission formulas. This seems to always result in an excuse for NOT paying any commissions to many or, in some cases, all of their distributors.
7. Avoid plans promoting products not useful to most people, or that cost more than the retail price paid in stores. Also beware of any plan that lets people become distributors without buying a product. This is not fair because most distributors, when given this option, will not buy the product. This results in lost sales all the way down the line.
Now that you know what to avoid, you are better equipped and ready to select a “genuine” M-L-M opportunity of your liking.