As we have discussed earlier that the success of MLM depends
largely on increasing the number of sales through sales
representative. Sometimes companies in
order to attract people use false claims. This is one of the major
reasons why many individuals fear MLM is because they believe
they are going to get scammed. If you search the net you will
find a lot of examples of companies making fake claims and
MLM scam. Here are a few examples how companies use
unethical practices to trick people:
Offering money back guarantee schemes
Offering miracles instead of real products
Asking new distributors to pay upfront fee
Promises to give people down lines once they
signup with them
Sometimes MLM companies do not even exist in
reality, they just create false websites to trap
individuals Demanding you to buy a certain
percentage of their product initially, which you might
cannot be able to sell and hence incur losses.
MLM Success Guide 29
Promising you unreasonably high commissions on
your sales.
Apart from them many MLM companies tactically plan there
commission scheme that actually takes money away from the
marketers or the people working under the network. Naïve
marketers usually do not understand that they are being scammed
and even after putting hundred percent efforts and generating
enough customers they fail to achieve companies’ unrealistic
targets and can get nothing out of their efforts. This is the reason
why it is always essential for a marketer to think prudently and
investigate properly before entering into the MLM venture and stay
away from the companies which apply unethical tactics to generate
profits. Listed below are few tips to avoid scam.
TIPS TO AVOID Multi level Marketing Scams:
Research the company and its management. For
example if you have no access to the company, no
phone numbers, addresses, or contact people, then
these are the signs that you are being scammed.
Read the policy and procedures before you join. Also
take some professionals advice before signing up
any agreement.
Avoid lead generation systems that rely on friends
and family.
Well understand the compensation plan. Also make
sure that you are being compensated for the sales
you and your downline generates and not on the
number of people you recruit as the later is illegal
pyramid scheme.
Investigate whether up line support is available.
Identify whether the company invest funds and
resources in training their distributors. Only good
and reliable companies will invest in training their
staff.
30 CALVIN CLARKE
If the Multi-level marketing company is asking for
several hundreds or thousands to join upfront, there
may be chances of being scammed.
Always remember that MLM success takes time and
demands hard work, never join companies that
promise over night profits.
By following the above tips a naïve marketer can reduce the
chances of being scammed and hence focus his efforts in
reliable and realistic MLM business.
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