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Why Multilevel Marketing is a Money Laundering Company
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MLM, or multi-level marketing, has existed for many years and everyone knows who is convinced to take part in one of these "Passive Income Business Opportunities". However, over the years, MLM quickly gave a bad reputation due to suspicious sales practices and false statements by new employees. However, the problem remains. Is MLM really a scam?
Identify your MLM sales strategy
The basic idea of ​​an MLM company is to establish a chain of customers and resellers who sell products and services or acquire new members. Basically, this type of sales strategy makes sense, but there is an essential difference between creating a profitable distribution chain and hiring new employees. Do recruiters earn money for registration fees? Need to convince others to participate for the benefit? If you answer "yes" to this question, the MLM company you are joining is a scam.
MLM product costs and prices
Pricing is a big issue for MLM companies. As each new distributor joins the store, a list of products sold will be provided. Simply analyzing the cost of products and services can distinguish legitimate MLM activity from suspicious activity. Fixed prices that are too expensive to sell to the public are a sign of fraud and do not represent a good commercial opportunity. Earning money at the top of the chain requires raising these prices, but these projects fail very quickly and those who choose the idea wonder where the money goes.
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Direct sales to consumers vs multi-level marketing
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Direct marketing to end users is a safer and more effective way to start a business, and you do not need to manage all "warning signs" and marketing measures associated with MLM fraudsters. The word "passive income" is encouraging for ordinary people, but starting a new business requires a lot of effort and anyone who promises otherwise should put their hands in the back pocket. Must have.
If you sell directly to consumers instead of the distribution chain, you can set prices and guarantee the quality of the products and services you sell. Don't be fooled by the fact that a MLM company is an easy, fast, or effective way to make money. Products and services make money for you, and by paying "privileges" for them being too expensive, poor quality, or selling them, you look red and such a system You have to ask yourself how to ignore.