MLM Scams Taint The Image of Legitimate MLM

While doing research for this article at first I thought this argument was ridiculous. If anything, leaving the corporate world has done nothing but dramatically improve all my relationships including the one I have with myself. I feel blessed to be able to work from home, the stress is gone from the unreasonable demands of corporate America making me a happier individual, I get to spend so much more time with my daughter, I have the flexibility in my schedule to be there when my loved ones need etc...

However as I learned the basis for this argument I must admit that I agree. MLM will damage your relationships if you choose to utilize old school high pressure sales techniques to get your friends and family involved. I don't even suggest you mention MLM with any friend or family member until they ask you how you are doing so well. Why would you? This is a tactic used by the inexperienced.

By utilizing the internet the days of face to face sales pressure, telemarketing, mailing postcards and hotel meetings with friends and family are over. They are over at least for those who know what they are doing.

However if you were to get involved with a pyramid scam, as opposed to a legitimate MLM, than yes that could cause stress that impacted your relationships. It is easy to steer clear of MLM scams if you do your research and know what to look for.

Identifying MLM Scams

Are There Moral Or Ethical Problems With Multi-Level Marketing?

It is difficult for some to separate the actions of the individual from the groups they attribute their actions to. We find this a lot in business and religion. Literature or propaganda in the name of MLM does not reflect the industry as a whole so let's analyze whether the business structure is ethical instead.

Remember MLM scams are not MLM. They are scams disguised as the legitimate business opportunity known as MLM. The MLM Compensation Plan: Fair & Equitable

In a MLM business each individual is considered an Independent Business Owner (IBO) and earns income based on marketing products and/or services and by recruiting others to do the same. Of course the terminology varies from organization to organization but the principle remains the same.

The compensation model actually is much more fair and equitable as compared to a traditional corporate one. Why? For starters a corporation is a true pyramid as the CEO makes top dollar and everyone below makes incrementally less. The lower on the pyramid you are the less you get paid and the less potential for financial improvement you have. You are financially stuck in your tier's pay bracket. Once you reach the high end of your bracket your ability to earn more income ceases. This is not the case with MLM.

The MLM compensation plan gives you control over your financial destiny. You have an unlimited income potential as you are now an Independent Business Owner. This actually gives you the potential to actually make more than your up-line. Where would you find that opportunity in a traditional corporate structure? The Real Challenge Of Attrition

Could you imagine going into a fortune 100 company with absolutely no resume, no interview and simply signing up to be the new Marketing Executive? That is exactly what is happening in this industry. The only catch is that the only way you get paid is to be successful at it and make the company money. What would happen to you within a month or two? You would most likely get overwhelmed and quit or get fired. This brings us to attrition.

Those who do get involved with MLM scams, believing them to be legitimate MLM opportunities, artificially inflate MLM attrition numbers. As illustrated above those who get involved in MLM unprepared for owning their own business naturally fail.

Every company in every industry has to deal with attrition. Why should MLM be any different? People leave, they find out they don't like the work, they find something better, they move, they get sick, promoted etc...

However it is also well known that employee satisfaction is directly connected to the relationship one has with their manager. Yes there is attrition in the MLM world but why is it this way? Because people are being seduced into getting involved with MLM when that is not what they really want and once they do get involved they do not know how to be successful. This is highly the result of the person who brought them in (called a sponsor).

It is in the best interest of the sponsor to help those in their down line succeed. The problem is most don't know how. Unqualified individuals are bringing unqualified individuals into MLM and then blaming the organization or the industry for the resulting failure.

I do not believe that MLM scams are the real issue here. To be successful in this industry you need a working knowledge of internet marketing. The Challenge Of Market Saturation

Theoretically market saturation should be a huge concern however in the real world there are additional considerations that mitigate the level of saturation seen.

95% of Network Marketers fail so it doesn't make sense to argue that oversaturation will bring the industry to a halt collapsing under its own weight.

Many argue for their limitations or in other words make excuses for their failings. Others choose to see a failure as simply a piece of data intended to provide feedback as to the results of a particular course of action.

Honestly when I first got into MLM I made almost every mistake in the book and that is why I know the results of those courses of action. However I decided to succeed. I did not make a thousand excuses as to why it must be this or that and went on to learn new ways of doing things. I implemented new strategies and saw new results.

This is a growing industry and the fact that so few are actually doing well creates an opportunity for those who can to take the lead.

Just like in any other industry those "in the know" are making all the money and we are talking about a 20 billion dollar industry with only 5% succeeding. There is a lot of money to be had by those who know the very simple secrets to making money with MLM. Anyone with sound business sense would be concerned with over saturation however the reality is this is still a growing industry at this point.

The Unfortunate Reality: MLM Scams

Unfortunately we need to address the very real problem of scammers and unethical individuals that have utilized this industry as a cover. Besides the problem of identifying whether an "opportunity" is legitimate or not this causes all MLM businesses to look fraudulent. Just as the pyramid has a stigma associated to it the level of scam(ish) sites and companies have tainted the image of MLM.

However the industry should not be judged based on the actions of the few. To avoid MLM Scams the important thing is to identify,

1. An organization you can trust
2. A product or service that is of value and that you can believe in
3. A sponsor that you are confident you can learn from

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MLM home business training is in fact small business training as getting involved with an MLM opportunity is only the first step to your financial success.

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MLM Opportunity: Are you looking for the perfect MLM Opportunity? With the Network Marketing industry doing about $20 billion a year in sales you will find there are many to choose from. (as long as you avoid the MLM scams of course)

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