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Multi Level Marketing Conspiracies Unleashed

Guest post by: Christopher Benoit

Article Overview: Are Multi Level Marketing “MLM” business opportunities a pyramid scheme or a legitimate way to earn stratospheric income. Everyone pursuing a home based business on the internet or through classified ads has seen the outrageous claims of instant riches with little or no effort.

Multi Level Marketing Conspiracies Unleashed

Are Multi Level Marketing "MLM" business opportunities a pyramid scheme or a legitimate way to earn stratospheric income. Everyone pursuing a home based business on the internet or through classified ads has seen the outrageous claims of instant riches with little or no effort.

Not too long ago MLM was a legitimate business which provided a way for companies to get their products to customers in small towns and rural areas which had no access to their goods. The MLM structure gave flexibility to distributors with little or no paid advertising. Companies such as Amway and Herbalife utilized recruits to sell to friends, family members, coworkers and anyone else they could find to buy the product. Inherent with this system is the need to gather a large group of recruits or a "downline" to purchase the goods and continue to this process. This is where the pyramid aspect of MLM originated.

Who Profits?

As in most bottom heavy organizations only the top 2-3% are going to profit. The drop out rate is astronomical. Over 90% of recruits quit within the first 30 days. For MLM programs or recruiters to be successful in today's market they must constantly recruit. Recruits will buy the product with hopes of realizing incredible gains only to end up filling up their garage with product they cannot move.

One weapon that has increased the ability to add recruits is the power of the Internet. After recruits have exhausted or alienated their circle of close friends and acquaintances, they need to find more bodies. All MLM programs provide recruits the ability to buy leads. However, most people dislike calling prospects and soon lose more money on this process. The next frontier for distributors is to mine for prospects by advertising on the Internet. While this is a viable alternative to offline advertising, there is a great potential to lose more and more money without the proper training.

What is the answer?

As in any venture one must do their due diligence and thoroughly research the MLM opportunity. There are many legitimate MLM companies that have built great publically traded companies that provide employment opportunities and income for many people. However, ask yourself, why should I have to purchase then resell this Product? If you are advertising and selling the product shouldn't a legitimate company facilitate this for you? Yes they should and it's called "Direct Sales". In a legitimate Multi Level Marketing organization, commissions are earned on sales of services or products not from recruiting associates.

In the end it all comes down to finding the right opportunity. Fraudulent MLM companies will require exorbitant start up fees and require the recruit to buy expensive amounts of product. Seek transparency and filter out the losers. Do your homework, find your comfort level for losses in the beginning and be prepared for the long haul. Anything that promises instant riches and very little work is looking to profit from a weak and unknowledgeable prospect.

Christopher Benoit

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Article Tags: conspiracies, home based business, instant riches, legitimate, mlm business opportunities, mlm scams, multi level marketing
Referred by: http://jaykubassek.com



Related Forum Posts
Why do people hate Network Marketing / MLM? - I've been looking at a number of different opportunities and end up meeting a lot of Network Marketing / Multi-Level Marketing people. Some of the offers look interesting but everyone I talk to about it says to avoid these guys like the plague - what's the deal? Why do people hate network marketers and MLM people so much? Is it not legit?
Re: MLM Marketing, youtube, and buzzirk mobile. - I have experience with MLM too. My initial reaction to the business was "snake-oil salesman" but once I got to understand the "overall business model" I am now an advocate to it. MLM (Multi-Level Marketing) is also known as Network Marketing. I realized an MLM business is no different than any other business. One needs to focus on both words "Network" and "Marketing" and give both equal respect. Some people focus heavily on the Networking part but forget "Marketing". I've started to use Building on a Budget and Magnetic Sponsoring concepts in my NM business and have found that people don't get involved so much because of the product but more because of what you bring to the table as far as marketing systems and support. I have both products listed in my signature. you don't have to buy it as the link to the free videos itself provides you a good understanding of what is required to position yourself as my above paragraph. If you do plan on purchasing it I can tell you that the measly $40 will open your eyes BUT your upline will not be too happy (atleast in the short term) beacuse the system is not duplicateable. I wrote this post as a polar post to Bulmer's reply as I have exhausted the friends and family networking and realized i never really focused on marketing. My leads now are more qualified and open to hearing about my opportunity than the other way around. my 2 cents if you plan on growing an MLM or Networking Marketing business.
Re: Why do people hate Network Marketing / MLM? - [quote="myownboss":1jri1k6n]I've been looking at a number of different opportunities and end up meeting a lot of Network Marketing / Multi-Level Marketing people. Some of the offers look interesting but everyone I talk to about it says to avoid these guys like the plague - what's the deal? Why do people hate network marketers and MLM people so much? Is it not legit?[/quote:1jri1k6n] Recently, I have written an article about money making scams and mentioned MLM scams there, too. Is MLM a scam? Well, most of them are scams. WHen you join them they endorse you with the promise giving you ready made FREE websites, autoresponders, ezines, traffic tools and you think that you get 2000$ bonus when you join them, but you have to pay certain amount of money monthly to join them and you have to make referrals (refer others to the same program) so you could return your money back. In Most MLM programs you will have to refer at least 4 new members to the same program to be in profit which becomes frustrating for most people, especially newbies. But recently, there was program called Cruise to Cash which is good program (they don't consider themselves MLM although). MLM can be good opportunity for entrepreneurs having large list. For newbies, it is most times another oppotunity to get scammed. Orxan
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