Cagey Consumer

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

  1. 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? Would you?
  2. 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.)
  3. 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 levels. 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.
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.
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