As you come across the multilevel marketing community, you might get intrigued by the sales pitch. You would be delighted to earn extra apart from your job. But, over a period of time, you may find major downsides and have to earn money by insisting people to join the network. Individuals who don’t have the skills for marketing the products may not succeed and be happy with the experience.
So, before you step ahead to join MLM company, you need to research online and go through some of the important things to know before joining any MLM Company.
1.Expect an Upfront Investment
You may have wanted just one or two items from an MLM’s catalog; next thing you know you’ve forked over a week’s worth of grocery money to purchase a “starter kit” of popular product offerings. Want to skip the sign-up and just buy the products outright? Some companies may make it nearly impossible to purchase without signing up — and if they do allow it, it could be at an inflated retail price. You may have to sign up and make an upfront minimum purchase in order to become eligible for member discounts, or when you do sign up, the idea of “business building” is likely to be shoved down your throat by an enthusiastic upline (MLM-speak for someone above you in the organization).
2.Member perks could require a minimum purchase
A few years ago, I signed on with an MLM because I loved the products and wanted to purchase them at a discount. I didn’t really intend to sell, but I wound up recruiting a downline (like an upline, only beneath you in the organization rather than above) who loved selling and was really good at it. Thanks to her efforts, I was earning commissions — supposedly. But when my checks didn’t arrive, my upline explained that it was because I wasn’t buying enough stuff. The company required me to spend $100 in order to earn my $20 commission. Say what? As much as I enjoyed the products, I didn’t need $100-worth each month. I immediately cancelled my membership. Other MLMs have similar structures, which are often disguised so people don’t realize how the system works until it is too late.
3.Friends, family, and acquaintances may get annoyed
It is easy enough to ignore or hide a Facebook friend who constantly peddles MLM swag through posts, videos, and party invites. But if you are the one doing the peddling, you might annoy — if not completely alienate — a few people in your life. According to the AARP Foundation, this is a deal breaker for a lot of MLMers. Thirty-nine percent drop the gig altogether because they feel awkward pushing products to friends and family. But for those who press on, relationships often suffer. Kelly’s story is a great example, and a recent story in The Washington Post called How MLMs Are Hurting Female Friendships describes other friendships-gone-awry in the wake of MLMs.
4.The income potential they claim may not come to fruition
The AARP Foundation stats spell it out very clearly. Nearly three-quarters of MLM participants either lost money or made none at all in their respective programs. Of the remaining quarter, most made less than $5K. A mere three percent earned between $10K and $24.9K. Just one percent reported income of $100K and above.
5.The promises and claims made about the superiority of their products may be suspect
Admittedly, some MLM products are great! There are cleaning products that get rid of grime without the use of chemicals, a facial moisturizer that really does reduce the appearance of fine lines, and leggings that are so soft and cozy you never want to take them off. But that doesn’t mean all the claims a company makes are accurate. Case in point: one popular MLM claims that their essential oils are the only essential oils on the market to have earned a certain quality certification. Sounds impressive, until you find out that the certification doesn’t even exist outside of the company. Only their oils earn the certification because only their oils are eligible to earn the certification.
A good reminder to do your own research and decide for yourself whether the products are truly worth the investment and the risk.
In the Philippines, one of the leading provider of MLM System is Geer IT Solutions, Inc. They are providing app, software and websites to their customers.
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