MLM Business Question

[Waddupz]

Are MLM businesses a great way of making a residual income?

[GraphicSwarm]

Unfortunately,not every MLM opportunity is a legitimate business opportunity. Many pyramid schemes (frauds designed to part the unwary from their money) are disguised as MLM opportunities.

Like MLM, pyramid schemes depend on recruiting people to become distributors of a product or service. Like MLM, the pyramid scheme offers the opportunity to make money by signing up more recruits and by accomplishing certain levels of achievement. It can be very difficult for the person looking for a business opportunity to tell the difference between a legitimate MLM opportunity and a pyramid scheme at a glance.

The big difference between MLM and a pyramid scheme is in the business' operations. The entire purpose of a pyramid scheme is to get your money and then use you to recruit other suckers (ahem.. i mean - distributors). The entire purpose of MLM is to move product. The theory behind MLM is that the larger the network of distributors, the more product the business will be able to sell.

Before stepping into unknown territory ask yourself these:
1) Are you required to "invest" a large amount of money up front to become a distributor? This investment request may be disguised as an inventory charge. Legitimate MLM businesses do NOT require large start up costs.

2) If you do have to pay for inventory, will the company buy back unsold inventory? Legitimate MLM companies will offer and stick to inventory buy-backs for at least 80% of what you paid.

3) Is there any mention of or attention paid to a market for the product or service? MLM depends on establishing a market for the company's products. If the company doesn't seem to have any interest in the consumer demand for its products, don't sign up.

4) Is there more emphasis on recruitment than on selling the product or service? Remember, the difference between MLM and a pyramid scheme is in the focus. The pyramid scheme focuses on fast profits from signing people up and getting their money. If recruitment seems to be the focus of the plan, run. These next two questions will help you determine what the focus of the company is:

5) Is the plan designed so that you make more money by recruiting new members rather than through sales that you make yourself?

6) Are you offered commissions for recruiting new members?

As always, when you're investigating a potential business opportunity, you'll want to gather all the information you can about the MLM company's products and operations before investing.

[guidemesingapore]

MLM businesses are in fact quite tough in the beginning. There are millions of schemes going around on the internet and many people are tired of hearing about MLM plans. If you get in one, make sure you are not easily demotivated and keep working hard. It should not be treated as a get rich quick scheme.

[simplyfreegas]

Short and sweet opinion from me, MLM as an affiliate structure is great, (which is why I'm using it) but most companies are very manipulative in their marketing to make you believe you will be financially free when statistics have proven that 97% of people "fail".

Let me know if you want me to go into more detail.

Richard

[nocci01]

Yes...through hard work and dedication...build the right organization and never quit...the residual income will be worth your while...depends on how much you want to make...but you build it once and the walk-away income keeps coming in for something you did long ago.

[simplyfreegas]

Yes...through hard work and dedication...build the right organization and never quit...the residual income will be worth your while...depends on how much you want to make...but you build it once and the walk-away income keeps coming in for something you did long ago.

And luck. There's only so many people you know in your little circle, and there's only so many potential people. Unless you're selling magazine subscriptions where people are paying for a product/service residually and not paying for the hopes of getting paid, then I'd say you have potential to utilize a MLM like business.

[nocci01]

It's funny...I am the #1 sales rep where I work...and I hear a lot of people saying that it's luck. Good philosophy to live by!

My circle is 2,000+ and growing. That's not little by any means!

Good "luck" to you!

[simplyfreegas]

It's funny...I am the #1 sales rep where I work...and I hear a lot of people saying that it's luck. Good philosophy to live by!

My circle is 2,000+ and growing. That's not little by any means!

Good "luck" to you!

Well there you go! You have 2,000 people in your little circle. Now, if you want people to match your success, they all have to get 2000 people each too no? So suddenly that's 4 million people, assuming that they put in the hard work and effort .....

[nocci01]

You don't suppose we should have 2,000 CEO's and 1 little guy in the same company do you?

[simplyfreegas]

You don't suppose we should have 2,000 CEO's and 1 little guy in the same company do you?

Are you saying that even though you use the income of CEO level reps as testimonial to the success one will achieve, you know that there can only be 1 CEO and 2000 little guys? Isn't that false advertising?