In this article, you will learn the facts from the myths. You will also learn how to spot the frauds, and when you find a real opportunity, how to know if it’s the one for you.  

 First things first, NOT all business opportunities are scams, pyramid schemes, or Ponzi schemes. In fact, legal business opportunities are some of the largest corporations in the world with the largest number of employees. In Asia, business opportunity marketing models are the #1 form of marketing, beating out all media and print marketing.

It is quite possible that you have just attended a meeting with a friend or any other person who has explained a fantastic scheme called Multi-Level Marketing Network and it looks to you to be a God-sent opportunity to earn a passive income. After all, who doesn’t like extra money coming in every month? You are overwhelmed and wondering if the concept is really as good as it sounds and whether you will be able to do the job successfully. 

Apart from having to think of yourself, your goals, priorities, and capabilities with regard to your ability to take up this as a primary or secondary career, you will need to find out a lot more details about the concept, the company, the product and so on to be able to make an informed decision. Before you decide to say a Yes or a No, it is important that you gather detailed information about the business to help you make that crucial decision.

Something to remember is that EVERY CORPORATION is a pyramid, not a pyramid scheme, where the people at the top make the most amount of money maximum, the people at the bottom making the minimum. The difference with a business opportunity is you don’t have to be a CEO to make a CEO income, you just have to build a sales team that produces a high volume of revenue.

Statistics show that salespeople have both the lowest and highest paid jobs across every industry because most sales jobs are performance-based. This is no different from any business opportunity because they are all sales performance-based.

Is The MLM Good For You?

If you’re considering joining an MLM, know that some MLMs may not be a wise investment. Other MLMs may not be a good fit for your interests and lifestyle. Here are some tips to help protect yourself against a bad MLM experience:

Do you want to be a salesperson?

If you join an MLM, you’ll be a salesperson. Your job will be to sell the company’s product and in many cases, you need to convince other people to join, invest, and sell. If you don’t like selling, or if you’re uncomfortable asking people you know to put their time and money into a business venture, joining an MLM is a bad idea.  

Do you have a solid sales plan?

Consider whether you have friends and family who will buy this product from you over and over again. Think about how you would find and keep other regular customers. Can people buy something like this product elsewhere, maybe for less?

What are your income goals? 

You might think that, with your smarts and hard work, you can earn a substantial income through the MLM. In fact, most people who join MLMs and work hard make little or no money, and some of them lose money.

Can you afford to risk the money and time? 

Every business venture has risks. MLMs are no different. Even if the start-up costs seem low, additional expenses can add up quickly. Expenses can include training and travel costs, website fees, promotional materials, costs to host parties, and costs to buy products.

If you need to borrow money or use your credit card to finance your expenses, you may face heavy interest charges too. Also, consider the time demands of the business, like going to training, recruiting new distributors, managing paperwork.

List of FACTS that you should know.

1. Almost No One Earns an Income

Many MLM companies will put their top performers for all to see. They’ll receive bonuses, vacations, and even cars. These top sellers will also be used to reel in new consultants. After all, they’re living proof that these companies are legitimate. If you work as hard as the all-stars, you too will see results!

What multilevel marketing companies don’t always tell you, though, is just how few people make a single penny in profit. The Federal Trade Commission found that only 0.4% of direct sales consultants made money. Even if you earn a paycheck from your company, your membership and stock cost almost always outweigh your earnings. 

2. MLMs Manipulate Their Statistics

Multi-Level Marketing companies often share incomplete and misleading data regarding their consultants’ success. The Federal Trade Commission compared MLM companies’ disclosed compensation model to the data they don’t share.

Why would you join a company that doesn’t share your actual likelihood of success?

3. You’ll Need to Keep Your Recruits from Quitting

In order to make money from your downlines, you’ll need to keep them on board. Since the success rate for direct sales consultants is so low, it’s hard to keep your recruits hopeful about selling. Within the popular MLM, Herbalife, net profits are possible once a consultant reaches World Team status. Only 5.71% of Herbalife consultants were at or above this level. Since so many people are below the level at which they see the profit, the consultant retention rate is at a maximum of 10%. As a result, only 0.571% of Herbalife consultants have the potential to earn a net profit.

If multilevel marketing companies were good sources of income, the retention rate would be far higher, making it easier for direct sales consultants to profit from their recruits.

4. You’ll Be Taught to Use Unethical Sales Tactics

Direct sales consultants are often taught to promote their products in unethical ways. A consultant selling weight loss products might post beach photos on Instagram while talking about their products’ benefits. This gives people the illusion that these consultants got that body from using those products. In reality, they already had that body. Talk about it and confuse them!

You may even be told to downright trick people into hearing your sales pitches. Using this method is like throwing your reputation down the drain – but that’s sometimes all direct sales consultants are taught. “I was told to advertise this way” isn’t an excuse for doing it!

Hence the reason why I stated that I am personally not a fan of most business opportunities. It’s also the reason why we at INFEX BIZTECH decided to do something about it. 

I hope this whole Article helps you to know FACTS about your MLM Company. If you have any queries, feel free to ask or contact us.