Multi-level marketing or just MLM has emerged to be one of the most popular ways of doing business. This kind of business has gained momentum due to the advent of the internet. The biggest benefit of this lies in the fact that the marketers can soon get a deep penetration into the core level of a market within a very short span of time. However, just as everything new has got its disadvantages and advantages, there’s too much scrutiny that is coming to bear on various multi-level marketing companies. People are now asking questions about whether or not such work-from-home opportunities are scams or legitimate options.
There are a number of legal businesses which allow you involve in direct sales from the comfort of your home like Tupperware, Avon and many other companies. But remember that not all programs are as forgiving as them. In many cases, you may find yourself purchasing large amount of products only to sit on them. Further you may sign up with some special program of an MLM company and end up in debt. So, let’s check out few signs that prompt that a company may be more of a scam than a legitimate business opportunity.
Sign #1: When the focus is more on enrolling than on selling
One of the foremost things to watch out for is whether or not the company is focusing on recruiting than selling. If you’re being recruited just in order to recruit more people rather than actually focusing on selling off the product, it might be a red flag. Try to notice whether there is too much focus on asking you to recruit more team members instead of focusing on just obtaining customers. If you see that their recruits are their only customers, it could definitely be a red flag to watch out for.
Sign #2: Receiving poor training
What kind of support do you look for? What sort of training do you expect from the MLM company? In what way are they answering your questions? If you ask them hard questions and they seem to divert you with lectures on positivity, you could be sure that this MLM company is a scam. One more thing to consider is the training situation. Are they offering you actual business support and techniques? If the training comprises mainly of how to persuade the newly-recruited people or tips to sell products to your family and friends, you can be sure that it is a work-from-home scam.
Sign #3: Peer pressure to pay for larger number of products
Do you seem to be pressurized to pay for more products? You may then be requested to join either a ‘fast track’ or become and ‘elite member’ by buying a great deal of inventory. Or you will be pressurized into buying a costly business package in order to receive the business support which is needed. If they ask you to attend an extra training on a daily basis or if they ask you to pay for office supplies, you will soon be in trouble.
Multi-level marketing lets you earn money fast but you need to watch out for the scam companies so that you can be sure of doing it in the most legitimate way. You may go through Wake Up Now Review to know more on MLM and its prospects.