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Member
Location: downtown Milwaukee, Wi.
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Beware "Opportunity" scams
Okay, being a young adult and educated young entrepreneur, I, as we all alike, happen to be constantly approached by hundreds of pseudo-marketers and markters alike (more in the form of recruiters, and "successful indie business owners).
And, growingly popular with those targeting teens and young adults are MLM businesses. MLM, or Multi-Level Marketing, is the LEGAL and Re-formed version of Pyramids (In fact, the legal recognition of a networking marketing program as MLM or Pyramid says if it is legal (MLM) or illegal (Pyramid...laws vary a bit from state to state). Simply, MLM's are where the MLM participant is generally considered an agent or Independent Busines OWNER (IBO); however, whether an IBO, or registered agent (MLM organizations may vary between agent, or IBO, etc) u are basically some registered form of an intermediary for a supplier, manufacturer, marketier,or distributor.
And as an agent or IBO, you basically build your "business" by recruiting more consumers and/or "business partners" by one-to-one marketing...and you are rewarded by a compensation program according to how many people u register as a consumer and/or agent. Also, you may be compensated in accordance to how good of a consumer of the product u are marketing as well (say, if I am an agent for ABC MLM Company, and I also buy their ABC product or from their ABC online store, I recieve either percentage of sales price, or get a rebate, or a combination of the two etc.).
That's how they work in nutshell. The problem with MLMs is that there are hundreds to possibly thousands of MLM programs, or self-proclaimed MLMs. And due to the number, its harder to know what s a real and LEGAL MLM, and which is a scam. Generally, within the US borders, ANY network marketing program that requires you to pay a registration fee on top of other fees and requires u to buy the product or make some kind of investment is probably illegal. They come in many different forms, styles, names, and propaganda. HOWEVER....they ALL, whether its a legal and legit MLM, or an illegal pyramid scam, promise "financial independence by owning your own business". Thus, why Independent Business Owner is the popular label.
One of the major MLM's is Quixtar.com, which is the child of Amway...Im sure many of us have heard of AMWAY.
Do research everytime you get an offer from something that sounds similar. I could write a novel on MLM's, but I don't think it's appropriate haha. I've tried the whole MLM in one way or another after graduating high school for a short time, and find it unpleasant and nothing that is actually "entrepreneur" about it.
Please, visit MLMWATCH.ORG for links on MLM awareness, alerts, information, laws, companies, advice, and links. That's what I used. There are other MLM watchdog sites as well...that, to me, is like the "Grandfather" of them tho, plus u can get to them too thru the website.
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"To walk in the shoes of a successful fellow, you must first walk in your socks to his shoe store.
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