Multi-Level Marketing Work From Home Jobs
Last week we talked about Work From Home Job Scams – how to spot and avoid them so you can have success in your job search. There are many employment options that provide the ability to work from home, but we did leave one type of home employment out. We think it deserves its own post.
These work from home jobs are seemingly perfect! They offer all the best advantages; the ability to create your own flexible schedule, the promise of unlimited monthly income, and a clear action plan provided by the company. You’re able to change your life as an independent sales representative for reputable multi-level marketing (MLM) company.
We’ve heard the sales pitch from a family member, friend, co-worker, or even a random stranger at the gym. They’ve got a life-changing, one-of-a-kind product that we’ve got to try! And, if we like it, they can tell us how to make money selling it…
Legitimate Multi-Level Marketing (MLM) Companies vs. Pyramid Schemes
Though some people may argue it, not all multi-level marketing companies are pyramid schemes. But, before you join up with Mary Kay, Herbalife, Beautycounter or any of the other MLM companies out there, know what you’re getting into. To be successful in any venture takes hard work and dedication. Any company promising thousands of dollars for little or no work is making empty promises.
- Normal Distribution – In normal distribution products come from a manufacturer and are handled and sold on by wholesalers and distributors to retailers and finally to consumers. Consumers purchase the products based on value and money moves up the line back to the manufacturer.
Manufacturer → Wholesaler → Distributor → Retailer → Consumer← Money ← → Value →
- Legit MLM Distribution – The MLM distribution model takes out the “middle-man” in the distribution chain. There is a manufacturer with a product and a MLM company creates a direct-sales model to get that product to consumers. In the model, money flows up the line to the manufacturer and value is passed down the line to the consumer.
Manufacturer → MLM Co. → Upper Level → Mid. Level → Newest → Consumers← Money ← → Value →
- Pyramid Schemes – Pyramid schemes use the MLM model to dupe unsuspecting people and investors. They have all the levels of distribution, the promise of success, a great product that’s easy to get behind, and a clear strategy for their independent sales representatives. But the big problem is that there is no value coming down the line to the consumer. There is either a product consumers don’t buy or no product at all. It’s a model that depends on people buying the product themselves and developing their “down-line” or getting new people to buy-in and become members.
CEO or Board → Upper Level → Mid. Level → Newest → Newest → Consumers?← Money ← Money ← Money ← → Value? →
How To Spot A Pyramid Scheme
- The best way to spot a pyramid scheme is to trust your gut. “Too good to be true” promises, results, or products should be a dead give away. Some products are better than others, but results that border on the miraculous…I don’t think so.
- Do your research. There are great resources out there to check out business, such as the Better Business Bureau (BBB), the Direct Selling Association (DSA), and numerous articles like this blog about MLM companies.
- What percentage of their product sales are from non-member customers buying and reordering product? A life in sales is hard when customers aren’t buying the product and repeat customers are rare.
- What percent of the company’s sales are to non-member customers? If the only people buying are people who are supposed to be selling it, you know you’ll truly be “spending money to make money.”
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