Is MLM A Scam?
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I was on a forum the other day when someone posted Is MLM a scam? Let’s just call him Joe; Joe was new to the concept of MLM or Multi Level Marketing aka Network Marketing. Joe had jumped right in to a business not knowing how to run a business or where to start. Joe used emotion to make a decision that he should have used logic. We have all been there admit it, that new car, house, or gadget. We bought it on emotion, not thinking about tomorrow sort of like our current state of the economy. From what I read Joe was signed up and forgotten about. He was left to run this home based business on his own. Then when Joe called up his uncle Bill and told him about this incredible business opportunity his uncle told Joe that this was a pyramid scheme and he wanted nothing to do with it. Wow! Joe thought this was going to be his way out of the rat race, put his kids through college and sip on those drinks with the little umbrellas on the beach somewhere and collect a paycheck.
Ok so is MLM a Scam? Well I guess that depends on who you talk to. With our current economy and unemployment, people have been flocking to the home based business arena a lot lately. The problem is that while there are good companies out there, people sometimes don’t understand how MLM works or they get very little guidance. The pyramid scheme theory? Here’s my take on that: You work at a company, you have X amount of bosses who have X amount of bosses until you get to the top boss or CEO. Ok draw that out and you have... you guessed it a pyramid! MLM is not a scam if people are shown how to run the business and are guided through the steps to get where they want to be. They need a Mentor that will help them through the whole process, and make them successful in the business.
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Comments: 2 
Pyramid Scheme
Hi Mike! Yeah, I've actually used that "pyramid scheme" example with prospects...I think it is very effective. The fact is, every job, business, and mlm all look like a pyramid when you draw them out like that.
So are they all schemes or scams? Of course not. Some people are not properly engineered or educated to be able to start a new business. It's usually those individuals who think mlm is a scam.
I believe mlm is an opportunity and I have chosen to add it to my personal arsenal of wealth building tools.
Is MLM a Scam?
Hi Mike
There is no question every large corporation gets wider as it goes from the top down.
But is that true for distributors in multi-level marketing companies? In many cases it is not.
If the company primarily promotes recruiting and very little if any focus is on finding retail customers using the products, by FTC definition it could well be a scam.
The general rule is 70% of sales should be to end users of the product, not people who are looking for others to recruit right along side of them.
Robert Ford
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