Beware of MLM Schemes and Products!

Multi Level Marketing or Network marketing / Chain marketing is a very familiar word now a days.  Hundreds of new MLM companies are schemes are introduing every month. By the time you might be also introduced in to many of such schemes by some of your friends/co-workers/relatives or so called your neighbor ‘MLM Millionaire’!

Thousands of people are joined in different Multi Level Marketing Schemes, as so called ‘independent distributors’ for many products ranging from household, health products or even ‘Gold coins’.

In many of such schemes Products sold in this fashion must be overpriced to finance the greedy profits promised to distributors. Some companies are selling low quality handy vacuum cleaner for Rs.7,000/-, and its original prices may be less than Rs.1,000/-. they are also offering some watches, energy savers, and other consumer goods for really high prices.   health products like Vitamins, weight loss formulas, and fiber supplements are ordinary items readily available in retail stores. Exaggerated claims are generally needed to justify extraordinary prices for these ordinary items. Herbal supplements may contain potent drugs naturally or by adulteration. Herbal supplements are not manufactured or labeled according to the high standards as consumers have come to expect. Salespeople, with little more than company training and subjective personal experience, may be misrepresented as “health counselors” when their real goal is to sell products and/or sign-up distributors. Selling health products one recommends poses a serious conflict-of-interest even when sellers are qualified and products worthwhile.

False Claims and dream of success

Many of us are joining in such Multi level marketing schemes either because of the pressure of our close friends, relatives or thinking like ‘ I can earn some extra income every month’. But does it really happen? Absolutely NO!. MLMs are driven largely by greed. The idea of working hard for a while, building up a substantial down-line sales system, and watching the money roll in, is appealing, but is “too good to be true.”. Many MLM companies claims that you can earn thousands every month, or even in a week. but the truth is 98% of the distributors will not get even the money which they are invested in the scheme. yes, it is the truth!.Even the well-established Amway company has not been able to deliver on the sweet dream for most of its people.

illegal pyramid schemes

All MLM schemes are working as pyramid schemes. or binary tree schemes. A focus upon new distributor recruitment in hopes of sharing in their commissions can cause multilevel marketing programs to become illegal pyramid schemes. An important legal criterion is that in pyramid schemes, most of the products become inventory in the hands of hopeful distributors instead of being bought and used by consumers. Thus, the unwitting, hopeful distributor may be victimized twice. First as one stuck with goods that have little chance of being sold, and second, as one stigmatized by having been a part of an illegal business operation. It is similar to the old ‘Money chain’ concept, and it is the old wine in new bottle!

You may pay a high social price.

This is very important!!!. people may start hate you and they will avoid you every possible occasion.Because multilevel marketing is aimed at friends, relatives and neighbors, a distributor can easily become persona non grata. Before becoming involved in multilevel marketing, you should consider how much value you place upon your good name. A short-term financial gain may not be worth what it cost in long-term loss of social status.

So when someone approaches you next time with some sweet offers and XYZ Multi Level Marketing Business, just remember all these things, and decide wisely. Remember,  There are no shortcut to success, and such MLM schemes are playing on your greed and urge to make money very quickly,  and they are using you to market their schemes and make money for someone who created the business. So Think twice before you take a decision.

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