Thursday, September 25, 2014

Be Aware about the MLM Company Frauds!

MLM stands for Multi - Level Marketing, which today is a popular worldwide phenomenon. Although, the major disadvantage of this is that due to its growing popularity, the cases of fraud are growing as well. Day in and day out we come across one MLM advertisement or the other that mentions a new company coming into existence. With this there has come a need to understand how to be more careful about MLM companies mentioned even on best of the MLM classified websites. But before we go ahead, for the benefit of a few, here’s something about MLM.

MLM or Multi – Level Marketing is also known as network marketing, referral marketing, peer to peer marketing, relationship marketing, direct selling and also word of mouth marketing. It actually deals with direct selling per say. It is an industry where one can start a business independently by sharing and promoting products and services to consumers and making these consumers their sellers hence forth.

Looking at all these and understanding the concept of how these companies function and have made a name for themselves while making huge profits; from the outside handling an MLM business looks simple and very interesting. However, as per the latest MLM news that we keep hearing, it is because of this belief that today along with the number of MLM companies, the scams around MLM schemes and companies have increased to quite an extent as well.

As they say, with great power comes great responsibility; this stands true also for the most powerful element of today which is the internet. It has given people an easy access to information whether they want to gather some or spread it instead. These days one of the most common usages of internet is to find jobs and businesses. Taking advantage of this, many frauds have successfully been able to con those who are in need and therefore quite easily give in to demands such as money, without hesitating much. The case is the same on MLM Classified Websites as well. 

These classified websites are the same as our traditional newspaper classified section. Many post job requirements here and introduce companies providing people opportunities for earning money through Multi - Level Marketing. The access of internet is so easy that it every day there is some new news or an update in the list of latest MLM news. Therefore it has become very difficult, especially for the first timers, indulging into the concept of Multi - Level Marketing, to figure out who is real and who is a con out of all the companies and people listed. 

Although there is no sure shot way for one to figure out these details but of course, one can always be careful. With rising unemployment and economy falling down, it’s obvious for a few to become desperate and fall for such cons. The picture that is portrayed in front of such people is quite rosy. The MLM frauds often lure such innocent people who are in need and in desperation talking about easy opportunities to work from home and earn added income etc. However, these MLM Advertisements have worsened the situations for many instead of being the help that one had expected it to be. 

Therefore, if you are planning to get involved in such a company or with people in this field there are certain things that you must keep in mind and evaluate before giving in and making a commitment towards anything that’s listed under MLM Classified websites. Here is a quick list of things that you should be clear about before you get involved with any MLM scheme or company: 

Assure the credentials of the company

Internet has also given you the power which can be used for your benefit, therefore, before plunging into anything take some time to do a quick but detailed background check about the company that you are planning to associate with. Look around, there might be some information in forums or among st individuals about what the company is all about, how it operates as well as what kind of people are involved with them. The latest MLM news will also help you figure out such things as well. So research a bit before making any commitments.

Understand the dynamics of the company

Not all MLM professionals make money! Remember this and don’t fall for the cheap tactics of the promoters. Understand how it functions and also evaluate if the promoter or the MLM Advertisement is exaggerating about the earnings and income that you would expect from the company. Don’t be vulnerable because one thing is given, that MLM professionals are excellent talkers and can convince quite easily. (After all ‘convincing’ is what an MLM is supposed to do!)
Also, at times it is seen that the MLM companies end up taking more money from you than what you make out of it. So use your understanding and judgement before you get involved. 

Actual sales might be very difficult

At times when one is at the seller’s end, a product might seem more viable than what it is. Therefore, make sure that the product is marketable as well as something that would have a demand. Think from a buyer’s prospective and figure out how or what the purpose of the product or service will be and evaluate the price and costing as well. 
Also, at this stage it is important for you to understand more about the product. Many MLM Classified Websites have listed products that don’t exist or at times are way different than what one expects them to be. So, test waters before taking the boat to the sea during high tide!

Evaluate the training that the company provides

Are your questions answered? Have you received a proper training? Are your agents deflecting your questions? Are you provided with a good business support system? And so on, and so forth! It is important that you find honest answers to all these questions because only then can one understand about the authenticity of the company. Since at every level exchange of money will be involved, especially with you coughing up a certain amount to your company at regular intervals, to check the authenticity is very essential. 

Don’t fall for the pressure to pay more

You might come across a situation where you might feel that you are being pressurized to pay more, even if in a very subdued way. For example, if the company is time and again asking you to purchase more inventories or to join some prestigious elite group or such similar things, then it looks like the company might be a source of some trouble. Don’t fall for these tactics. You wouldn't want to end up with your store full of the products which you might not be able to sell!

Irrespective of what the MLM Advertisement say, never ever release your personal credit card or other banking details to anyone. No reputed MLM Classified website or company will ask you to do so. Also, be varying of those who try to lure you in taking loans or credits. 

Apart from these there are also certain other things that one needs to be careful about. Like if it seems that the scheme or the company is too good to be true then do perform the litmus test on it. Figure out how amazing is the “Amazing Scheme” actually. Also, understand that the people involved in MLM business are very tactful and therefore can quite easily strike a deal with you, without you realizing it at that point in time, though later you might feel that the sales tactics got the better of you. Be careful of such people and schemes. 

Another way of keeping yourself safe from such frauds and cons is to be aware. Keep a tab on the latest MLM news and you would be on the top of your game with what’s happening in the industry, what schemes are people talking about and which one has been proven a con. 

It is even more important to be aware in the case of Multi - level marketing because the chain is so long that if a scheme or product is a con, it will be very difficult to even file a complaint. Though, if this changes then most of the issues regarding MLM frauds would be sorted out. But most of the times such incidents are not even reported and as a result more people fall prey to the company. 
However, irrespective of all these things, if you have the knowledge and skills then this is an excellent way to get involved with a business. Experts from around the world have dual opinion about Multi - Level Marketing but most of the people today have begun to accept this as a very viable source for earning a living. However, before you do take this step and get attracted by some MLM advertisement, remember that you would have to sell to everyone and anyone while also having to recruit more people who would then sell the products and services to other and so on and so forth. 

One of the basic character traits of a person who is getting involved with such marketing technique is that they are organised and self-motivated. It has to be because only with self-determination will you be able to sell more, recruit more and thereby keep your business running and flourishing. 
Out of all the things that the MLM Classified Websites don’t tell you, the biggest fact that they hide from you is that most of the people who join MLM lose more money than what they earn. Understand that the law makes it mandatory for every MLM company to show Income Disclosure. Many would show it quite easily if they are genuine, however there might be a few who would not be willing to disclose it or might word the document such that it is misleading. Take time to read this document to understand the business as well as the company better. Remember that you are getting into business to earn money and be in a better financial position, and not to lose instead. Therefore, make these efforts, for your own good! 

Whatever the MLM advertisement says, treat your participation in the MLM business like you would treat any other business. However much money might be involved and whatever the company or scheme might be offered to you, tell yourself that it is no different from any other business therefore there is no point in being over excited because it is under such situations that you lose your calm and sense, thereby take inappropriate decisions carelessly. Since it is like any other business, do remember that like in any other business you have to believe in the product before you can sell it, here as well it is the same. Irrespective of what the quality of the product is and what the offerings are, you have to believe in it before you would be able to sell properly. 

Have a vision, understand the product, create a routine, be self-motivating and also be enthusiastic; with it MLM will bring you quite a lot of success as well as finances. However be aware about the latest MLM news and don’t fall for the MLM Advertisement just like that.Be more careful as well as smart enough to understand what’s real and what’s not. There are quite a few out there that are deceptive, predatory as well as going viral, whether through MLM Advertisements or through MLM classified websites. Follow by the rule that “Precaution is better than cure.”

1 comment: