Multi level marketing scams continue to rise in numbers. This continual growth hampers those who are looking for legitimate home businesses.
There continues to be a growing number of people who have some form of home business. Whether they are in their business on a full-time basis or just an “on-the-side” deal, there is definitely a demand for home businesses. As with all things, where there is a demand, there is a supply, and when it comes to home businesses there is no shortage to choose from.
At the very core of the home business market is the multi level marketing (MLM) industry. For anyone who has never been involved in MLM, there continues to be a lot of confusion about this industry from both a functional and legal perspective. Both conditions produce anxiety and fear as our minds will instinctively fear what we don’t know. To add further fuel to the fire, one glance at social media and you’ll see the hundreds, if not thousands of opportunities being promoted as the best.
Is Multi Level Marketing a Scam?
Through all the income claims, and product testimonies, they continue to increase the level of anxiety and resistance to an industry that already has a stigma as a pyramid scheme. So who do you ask or a better way to put it would be how do you get honest answers about an industry that seems to have been around for decades?
To start the process of understanding multi-level marketing, you need first need to start at the beginning of not an opportunity, but the industry itself. Looking at how the industry started, how it has progressed and where it is today. Looking directly at the industry without an opportunity attached will allow you to develop a dialogue to follow and allow you to pull back the curtain of mystery.
From the most basic of levels, you have to look at longevity. Actions will always speak louder than words, and for an industry that has been around since the mid-1940s, there is some verification the industry is viable. But when we say “the industry”, what does that entail?
Simply put, the MLM industry is a business model employed by companies looking to sell products or services. The distributors are the sales team who promote, sell and benefit from moving these products or services. If there is not tangible products or service, you could going down the slippery slope of being tricked into scam.
You must always remember the company must have something to sell. It cannot just be get new members to sign-up and continue that process without any sort of products.
While that is a very simplistic description of MLM, it’s a starting point. From here you will then need to understand the basics of what comprises an MLM business model finishing with the compensation plan and how you will be paid. This all before even looking at a specific opportunity and most likely your skepticism will still be present but remember you still on the outside looking in.
Understanding and deciding if MLM is a scam is not something you will be told, rather a decision you will have to make. This is an important item to remember because should you choose to be part of an MLM business opportunity, and your personally believe MLM is a scam, that belief will transfer through your actions and your results.
The time you spend now understanding the basics will pay large dividends in the future.
If you have more questions and would like to speak to experienced multi level marketing professionals, contact Engineered Lifestyles today through our Contact Us section. We look forward to speaking with you and helping your achieve your entrepreneurial goals.