Saturday, September 8, 2007

Should You Be Involved in MLM Marketing?

Everyone wants to strike it rich, and a lot of people are doing it online, with at home businesses and through multi level marketing, which can also be labeled as a pyramid scheme. There are some companies that are legitimate businesses; however, there are a lot of companies that just scam the public.

Multi level marketing works by companies starting out with one person who signs up a number of other sales representatives who, in turn sign up more reps who also sign up more. It’s a difficult cycle that rarely ends well for anyone other than the originator of the company. Some of these have been called pyramid schemes and are, in fact, illegal in some states. Be wary however, because sometimes the not so legitimate multi level marketing companies can be guilty of price fixing and falsely advertising profits for members. Price fixing is a maneuver used by companies to promise the other to sell their products at the same price which can ultimately drive the costs up making it profitable for the companies only. When the companies falsely advertise member’s profits, they can literally make them seem outrageous to the point of unbelievable. Smartly done, they can make you believe that you can make a comfortable living from home without putting forth too much effort or time. Stay at home moms are often victims of these schemes.

Don’t fret however, or worry about your company right off the bat. There are legitimate, FTC approved companies that do not try to manipulate or mislead their prospective employees. In fact, the federal trade commission offers advice to lead you from the true pyramid schemes and tell you how to identify the honest companies. Legitimate multi level marketing companies earn profits on sales of products and new member recruitment whereas pyramid schemes make money on recruitment of new members alone. There truly is a genuine opportunity to make a great deal of money with multi level marketing companies, and there are plenty of well known MLM’s out there that have proven to be successful.

Perhaps you know someone who sells you make up and other beauty products. Guess what? They’re working for a multi level marketing team. They may drive around in a brand new Cadillac or hand out little catalogues every two weeks. They may even be doing very well for themselves and not even have a clue that what they are doing is borderline illegal.

One way to make sure that your multi level marketing company stays successful is to have a product that will be popular for a long while. The longer the MLM stays in business, the more trustworthy it can be; just be careful of how you run it. The key is to make sure the goal of the company is the actual movement of valuable products or services to the end consumer - if that is the case, you've found a good one.

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