How to avoid bad MLM scams
Multi Level Marketing is the process of joining a business
venture and then benefiting from the efforts of people you
yourself introduce.
How it works
A MLM business will typically offer 2 main sources of
income.
1. Income on sales of a product or service
2. Commission on the efforts of those you recruit to the
business
Your commission may also be determined by paying to join at
a higher earning level, in a similar way to a lawyer buying
in to a partnership.
The commission you earn from successive levels below you is
known as residual income. As long as those people remain
working in the business you continue to gain commission
from them.
This commission will vary depending on the business but a
typical scheme may offer 20% on the people you directly
introduce and then 5% on anyone those recruits introduce,
down to perhaps 7 levels.
How much money can you make?
Say for example a member generates sales of £5 per week.
In the following table we can see a commission of 20% for
Sales achieved by yourself. If we assume that every person
under you achieves the same sales and introduces another 5
people, by the 7th level, in theory there should now be
78,125 people on whom you earn 5% commission. This would
equate to an income in excess of £1.2m per annum.
In practise however, things rarely run so smoothly. Many
recruits will leave after a short time, disillusioned by
results that have not met expectations. But there will
remain a hardcore of members who have faith in the system
and work hard to gradually build their income.
These people realise you need to invest time and money and
that patience and persistence will eventually pay off. Your
task is to identify such people and get them on board.
And remember, it only takes One Key Person to change your
life in Network Marketing!
How to find the right business and which ones to avoid like
the plague?
You should look for 2 main criteria
1. Does the MLM business have a good product to sell?
2. Does the company have a good track record?
Well known Products
Choose a scheme with a product you understand and can
relate to. For example, take an online store, selling good
quality products at excellent discounts. A mature market
certainly but people understand it and will readily assess
whether the products are value for money. You will also
find it easy to introduce others.
One of the key considerations of any business is the
potential demand. If the market is limited to a few areas
it is more difficult to build your downline. Choose
products that have good growth potential and have global
appeal. Chances are you will also receive plenty of indirect
advertising.
National lotteries also have potential. Everyone is familiar
with them and if the product involves selling places in
public lottery syndicates, for example, then you will
obtain plenty of publicity from Television and the Press.
Avoid plans that offer success and riches arising from just
selling the MLM idea to others. Say No to illegal pyramid
schemes.
Federal Trade Commission offers useful advice on Network
Marketing http://www.ftc.gov/bcp/conline/pubs/invest/mlm.htm
Conclusion: Take care in choosing the right business. Be
prepared to invest time and money. Be Patient and Persistent
and MLM really can make you RICH beyond your wildest
dreams. .
Will you waste time and money on figuring out how to make your fortune online?
Cut straight to the chase with an opportunity that fulfils all the above criteria:
===> http://www.lucky-picks.com
venture and then benefiting from the efforts of people you
yourself introduce.
How it works
A MLM business will typically offer 2 main sources of
income.
1. Income on sales of a product or service
2. Commission on the efforts of those you recruit to the
business
Your commission may also be determined by paying to join at
a higher earning level, in a similar way to a lawyer buying
in to a partnership.
The commission you earn from successive levels below you is
known as residual income. As long as those people remain
working in the business you continue to gain commission
from them.
This commission will vary depending on the business but a
typical scheme may offer 20% on the people you directly
introduce and then 5% on anyone those recruits introduce,
down to perhaps 7 levels.
How much money can you make?
Say for example a member generates sales of £5 per week.
In the following table we can see a commission of 20% for
Sales achieved by yourself. If we assume that every person
under you achieves the same sales and introduces another 5
people, by the 7th level, in theory there should now be
78,125 people on whom you earn 5% commission. This would
equate to an income in excess of £1.2m per annum.
In practise however, things rarely run so smoothly. Many
recruits will leave after a short time, disillusioned by
results that have not met expectations. But there will
remain a hardcore of members who have faith in the system
and work hard to gradually build their income.
These people realise you need to invest time and money and
that patience and persistence will eventually pay off. Your
task is to identify such people and get them on board.
And remember, it only takes One Key Person to change your
life in Network Marketing!
How to find the right business and which ones to avoid like
the plague?
You should look for 2 main criteria
1. Does the MLM business have a good product to sell?
2. Does the company have a good track record?
Well known Products
Choose a scheme with a product you understand and can
relate to. For example, take an online store, selling good
quality products at excellent discounts. A mature market
certainly but people understand it and will readily assess
whether the products are value for money. You will also
find it easy to introduce others.
One of the key considerations of any business is the
potential demand. If the market is limited to a few areas
it is more difficult to build your downline. Choose
products that have good growth potential and have global
appeal. Chances are you will also receive plenty of indirect
advertising.
National lotteries also have potential. Everyone is familiar
with them and if the product involves selling places in
public lottery syndicates, for example, then you will
obtain plenty of publicity from Television and the Press.
Avoid plans that offer success and riches arising from just
selling the MLM idea to others. Say No to illegal pyramid
schemes.
Federal Trade Commission offers useful advice on Network
Marketing http://www.ftc.gov/bcp/conline/pubs/invest/mlm.htm
Conclusion: Take care in choosing the right business. Be
prepared to invest time and money. Be Patient and Persistent
and MLM really can make you RICH beyond your wildest
dreams. .
Will you waste time and money on figuring out how to make your fortune online?
Cut straight to the chase with an opportunity that fulfils all the above criteria:
===> http://www.lucky-picks.com
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Comments (1)
Jenny Stewart11
Hi Christopher,
Nice article and if I may add to your comments
"Avoid plans that offer success and riches arising from just
selling the MLM idea to others. Say No to illegal pyramid
schemes."
And ask Questions and more questions and then more questions and if you do not receive satisfactory answers or the person trying to recruit you or who has already recruited you gets angry or defensive - - take your money and run like hell!
Saludos
Jenny