Cagey Consumer's advice about MLM's
Typically, promoters of multi-level marketing plans are quick to point out
the earnings potential that their plan offers
In some MLMs, the products being sold are barely mentioned.
Yet, an MLM without a viable product or service is just a disguised pyramid scheme.
There are numerous instances of MLMs that wind up sucking more money
from the distributors, on average, than they earn through the plan.
This is what can happen when there is insufficient demand for the product
being offered through the MLM.
Questions to Ask
Getting positive answers to these questions doesn't guarantee you won't
wind up in a bad MLM, but it will ensure that you focus on some
important issues in selecting an MLM.
Does the product or service make sense for prospective customers?
Would people buy the product or service offered at the
suggested retail price, in the absence of the business opportunity?
Does the marketing program make sense for people who would sell the product
or service if the only compensation offered were that available through personal
sales (i.e. without a downline)?
Would you be willing to work the program on that basis?
(Beware of any program that pays a greater commission percentage for sales
made by people in your downline than for personal sales.)
Does the program make sense for the MLM company itself?
Sometimes MLMs offer what seems to be a fantastic compensation
program, such as potentially paying out bonuses on infinite
If it looks like they could pay out more money in bonuses than
they are collecting from sales of the product, something is obviously wrong.
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