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Multi-level marketing?
I've been approach by one of my friend to join him and his group in a multi-level marketing, his friends explain to me how I can be rich fast, they showed me prove by showing me for whom they work for and the faces whom are have became rich in multi-level marketing and I need to contribute some of my money , sure who don't to be rich but surfing through the internet I found there are people whom became victim of multi-level marketing, some lost their life time saving and some lost their personal properties, it was a scary truth for me, should I let go of this once in a lifetime offer or risk losing everything
8 Answers
- 1 decade agoFavorite Answer
Multi-level marketing (MLM), also known as Network Marketing, is a business-distribution model that allows a parent company to market its products directly to consumers by means of relationship referrals and direct selling.
Peple considering getting involved need to be careful. In the USA, the Federal Trade Commission (FTC) issued a decision in which it indicated that multi-level marketing was not illegal in itself, but the Amway company was found guilty of price fixing (by requiring "independent" distributors to sell at the low price) and making exaggerated income claims. Other practices, like offering commissions from recruiting new members, are signs of a firm that is best avoided.
The FTC says that all sellers of business opportunities, including MLMs, should provide enough information to enable prospective buyers to make an informed decision about their probability of earning money.
The scheme you mention sounds like one to be avoided.
Hope this helps!
Katy Ortega
http;//www.biz247.biz
- 1 decade ago
Sometimes they're scams, but more often they're just a big waste of time and money.
The problem with many MLMs is that there's no good, solid underlying product. Sure, they can show you pyramids of levels, and how much you'll earn as you climb that ladder. But at the bottom, there have to be real people buying the real product. That's true whether it's pre-paid legal services, or some magical tropical juice, or a service that helps you pay off your mortgage in just a few years.
In some cases, the companies are legitimate and the services are worth the money. In other cases, few sane people would every buy the product.
And watch whre your friends and the organizers put their emphasis. If it's on the actual product or service, that's good. If they barely talk about the product or service, but just about recruiting others, that's bad.
And watch out for the entry costs. Honestly, even with the bad MLMs I've investigated, they haven't wanted a huge investment up front. The highest I've personally run into was like $3,500 for the mortgage prepayment service. Sure, that's a chunk of money, but it shouldn't bankrupt most people. And there, you were actually buying the service, too. I'm not sure what you'd do with a garage full of cases of tropical juice at $40 per bottle!
All the MLMs claim it's a once-in-a-lifetime offer. And, for them, it kind of is. The people who get in early--who end up close to the top of the pyramid--are likely to be the ones to make some money off the deal. It's nice to see 7 or 8 people below you, so every time they make a sale (of product or membership), you get a cut. On the other hand, once they're all in, you're looking up at that pyramid: Every time you make a sale, you get a slice and all those above you benefit as well.
So, if the product or service is something people really might buy, and the entry costs are minimal, give it a shot if you want. Just don't have high expectations for it. I'm not a fan of MLM, but it's true that a few people have done pretty well with it.
Hope that helps.
- 1 decade ago
This once in as life time offer will still be there year after year if you choose to wait. All you loose is your place in line. If you really need to make your time more valuable then go to the government printing online from Pueblo Co. and put together several pieces of information into a book you can copy to a computer CD, then sell it on E-bay... the information has no copy-right and can be sold without even a question of legality. The true question here is not if you can make money, you can... The question you need to answer is what YOU are willing to do to make money. If you join a MLM and do nothing like most, then you too may loose your shirt depending upon what you sign without reading it in the first place.
ME!
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- 1 decade ago
It's probably a ponzi/pyramid scheme where the return to investors comes from the money paid by subsequent investors rather than from profit. When there are no more new "investors" in the scheme it crashes taking the wealth of all on the lower levels. And it will crash because they can't find new investors to cover the income of the old ones at some level. I suggest you even talk with the authorities about this, as many people may lose their life savings in such a scheme. Google ponzi scheme or pyramid scheme for more info.
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- Anonymous1 decade ago
It's all about networking and yes more often it can be a scam. There is no easy and quick way to get rich in an internet marketing business. It is of course a big risk. If your really want to make money online and get real answers on how to make money online and get good tips from real gurus and people, join internet marketing groups and communities.
Source(s): http://www.sitesource101.com/ - Anonymous7 years ago
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- 1 decade ago
Once in a life time offer? It's just a scam. You might make your money back if you're lucky and recruit a bunch more people but chances are they're gonna lose their money and hound you for answers.
- 1 decade ago
Answer for your question is lies in your question itself. If you are having good circle of earning friends and ability to influence them to join your proposed MLM scheme, then you proceed with confidence without taking consideration of the fate of your innocent and trusted friends. Hope you might have cached my point.
Ok Bye.