Multi Level Marketing Scams
I would avoid these internet scams like the plague. They use social proof and testimonials very well, but prey on vulnerable individuals. USA Today clarifies:
All MLM programs share the same fundamental flaws, including:
Recruiting your competitors: If I’m in sales, the last thing I want is more salespeople competing with me. But in MLM, your goal is to get lots and lots of competitors. Why would I want to do that?
You pay to be a customer: Overwhelmingly, buyers of MLM products are MLM salespeople. A legal counselor to MLM programs advises that a mere 20% of sales to outside consumers is high enough to avoid legal scrutiny. Can you imagine any other business where 80% of sales are made to employees?
You’ll pay far more: Expect to be required — or pressured — to buy samples, marketing materials, training courses and tapes, seminars, etc. You’re very likely to spend far more than you’ll ever bring in from sales.
Your products are priced too high: No matter how good the quality of your products, consumers are likely to be able to find better deals elsewhere. Just think about it — all those middle layers of salespeople and commissions means higher prices to the consumer.
You turn your friends and family into “prospects”: MLM programs typically suggest you sell to — and recruit — people you know well. Do you really want to be constantly beseeching those closest to you?
You face group pressure: One of the positive sides of MLM groups is the support given to those who spend a lot of money or who try hard to succeed. The flipside is that those who don’t spend as much or believe as strongly in the program are likely to face strong negative judgments from the group.
Funny Internet Marketing Video
While I acknowledge that is is possible that 5 to 10% of MLM marketers are legitimate, or that there may be a host more that are illegitimately manipulated to participate. Overwhelmingly multi-level marketing is a strategy to avoid. Why would you want to buy into an unethical method of marketing?