Multi Level Marketing Issues And Scams
In these days when all kinds of scams are affecting many people, it is no surprise that the successful multi level marketing (MLM) business concept is one that scam artists frequently copy. And unlike other business scams, MLM scams seem to be one of the most serious cases. The reason is that MLM scams, or better known as pyramid scams, often involve huge amount of money taken from each individual victim.
The worse thing about these scams is victims don’t realize they were victims until the suspect or the company has disappeared from the scene without the slight warning. Sometimes, the scam is perfect enough that even the government fails to initially detect that there is something illegal into it such that the unscrupulous suspects get away fine with tons of robbed money in their pockets.
The sad thing about MLM scams is they have become a piece of the whole network marketing industry. Subsequently, if the person is not vigilant enough, they can get easily and lose their hard-earned money before they realize it. It is a given fact that because of the poor economy crisis, many are looking for the fastest way to double, and even triple, their money. As a result, more and more people fall trap to these scams.
Of course, the government is doing its part to protect the people by warning them how scams work and how to avoid them. For instance, giving out information that MLM scams are easily spotted when they don’t have legitimate products or services to promote; when the people behind them look unreal; when their claims are too good to be true; and so on, and so on. So, at least, this information helps people to become aware of the existing scams and avoid being a part of them.
But, sometimes scams do not only happen on illegal companies. Sadly, some legitimate MLM companies do their own scam thing too albeit not in an illegal way.
See it this way. When people join a legitimate network marketing company, they are assembled to be trained and taught things they are supposed to do in order to succeed in the business. They are taught how to go on a list of their whole family or friends, contact them and make appointments, bring sales, and recruit as business partners.
True enough, these tasks work and they were able to build a kind of network. But after exhausting the list, where do they go now? This is no problem. The company will instruct them to go out and find other people to recruit into their teams. Sounds simple, but the whole matter is that it isn’t, particularly if you are not the type of person who can easily bond with a stranger.
So, what is the problem with the training? What they don’t realize is that a hundred percent of the supposed training was not given to the members leaving them hanging in the air after the initial part of the whole work is achieved. Or simply, the effective way of generating new leads or list of new recruits for the business is missed. And because of this missed part, some of the members do not know what to do. They end up frustrated and start considering other things to do instead of continuing the started MLM work.
It happens all the time in the industry. So, if you are an individual who considers joining multi level marketing business group, don’t just look for signs of MLM or pyramid scams. Even if you end up with a legitimate MLM group, find out if a hundred percent training is given to the new members to ensure you know what to do from the start until the peak of achieving success.