Sham Pharaohs
MLM deception is everywhere. These rip-offs give legitimate MLM opportunities a bad rep mainly because they're based on a very similar structure that makes it difficult for the uninitiated to tell them apart.
If you're interested in getting into an MLM business, it's your obligation to ask the tough questions that will separate the real deal from the fake ones. Remember, an honest MLM business has nothing to hide, while a sham can't endure close scrutiny. Don't let anyone pressure you into signing up for anything and be sure to read the fine print!
Here's a quick checklist of questions you should ask before you agree to stake your name and reputation behind any company. Even one red flag should be reason enough for you to look elsewhere. There are more than enough real MLM business opportunities out there, so why get involved in something dodgy?
Can the marketing system be duplicated?
Pyramid shams have survived for so long because of the lure of immense profits. True enough, the people who get in the program early enough (the originators or "Pharaohs") make a killing but that's about as far as it goes. The system eventually collapses as people down the line aren't able to duplicate the success of the Pharaoh because it becomes geometrically impossible to recruit enough new prospects. Every pyramid rip-off will try to convince you that you're joining early enough to make a lot of money, but there's no real way to verify this. The secret to spotting a shady deal is by analyzing if the marketing system can be sustained. That means, no matter how late in the game you join a system, you should still be able to duplicate the success of people in your upline. Did I mention fake "pyramids" are illegal in many countries, including the US?
Is the company based outside the US?
The issue here is accountability. You never want to be involved in a company that can just pack up and go outside US jurisdiction. Be especially careful with companies based in countries with no extradition agreements with the US.
Will you be mentored?
A legitimate MLM company will invest in training their representatives on how to market their product. They're there for the long haul and believe it's in their best interest for you to know what you're doing. In comparison, some MLM frauds abandon you after you've paid up, which is all they were really after. Meanwhile, you discover that you're stuck selling a lousy product you can't even give away.
Does the product sell itself? Is there enough demand for that product?
Okay, those were two questions, but what you're trying to establish is if the company is here to stay or just looking to make some easy cash before vanishing. Beware of products that require hard selling since you won't be able to sustain sales. The same principle applies to products that have no demand for them. Eventually, these fake MLM companies fade away and resurface under a new name selling the same useless merchandise. Might as well ask them how long they've been around, while you're at it.
Who are the founders & CEOs? How many MLM companies have these guys created before? Why?
You should always know who's ultimately in charge of the company you're representing. You should also be wary of people who seem to have made a habit of creating MLM companies. What happened to the other companies they created? Hmmmm...
Access this Free MLM Report explaining why Networkers are throwing in the towel on downline building, and using a new concept called G.P.T. to make more money than ever.
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