Know How To Recognize A MLM Scam

Posted by Casper Fredericksen
2
Feb 11, 2010
778 Views
The prospect of creating your own home business often presents an individual with promises of making tremendous amounts of money through simple methods and laid back techniques.   The reality is that these business ventures often only improve the status of the company or individual you received the business idea from as you struggle to make what you used to earn in the traditional working environment.   There are several basic errors a person makes when seeking a career on their own with a home bases business.   The following recognizes three of the most typical errors that new entrepreneurs have made and need to be wary of when undertaking a new business.

When you decide to pursue an affiliate style business you are utilizing the goods of another company to sell.   This is beneficial to many individuals because it allows them to sell goods without having to purchase inventory, along with the opportunity to sell a good that has an established client base with a well known name.   The MLM scam that most individuals fall into is the marketing scheme that most of these companies support when providing MLM marketing training for new sales individuals.  

Frequently using the MLM marketing training which targets the friends and family method of marketing.   This MLM marketing training technique utilizes an individual?s friends and family as new sales prospects as well as new employee prospects.   The MLM scam is presented that you must make three friends or family members into customers and then into sales people who then market to three friends and family who in turn market to three friends or family and you will acquire a lot of money.   This MLM scam pyramid does look convincing on paper but in truth you have to depend on these people who may not have the same ambition as you, therefore sales may not be made and your checks will be nil.

An additional MLM scam procedure that businesses support is located in the three way calling process of closing a deal.   This style has you going out and meeting with prospective customers, explaining your goods or services and then convincing the customer that they require these items from your company.   The MLM scam is that you then have to call an upper management individual, who closes the deal, provides discounts and ultimately makes the sale.  

From the perspective of advantage, the upper management individual is making sales to an individual who is primed to buy products from them while you wait on the sidelines to get a cut.   This MLM marketing training method places most the commission in the hands of the selling individual, leaving you with little return on your investment and surviving off the remaining commission scraps of the upper management individual.

The final MLM scam that a lot of people fall victim to is the MLM marketing training that supports the hand dispersal of media advertising.   This style of MLM scam informs individuals that they have the opportunity to make a commission off of the goods that company sells when a customer that they references through handout media such as flyers, business cards, and DVDs makes a purchase.   The reality is that most of these individuals simply trash this promotional material and even if they do call your cut is often a small percentage of each sale.
1 people like it
avatar
Comments (1)
avatar
Awwal A.
6

Socio-Networker

avatar
Please sign in to add comment.