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Beware of Multilevel Marketing Schemes

By: Jason Cunningham (11-27-2006)

Has anyone ever approached you at a mall or store about a business opportunity? Generally, the individual hypes up the amount of money one can make, even before telling you about the product. Usually, the person who has approached you, is part of some multilevel marketing.

In the United States, most of us work in corporate America. The amount of money we make depends on our type of work and the profitability of the company. Unlike multilevel marketing operations, your company has real employees. Most of these business opportunities are more depended on signing up new people to sell their product, than the actual sale of widgets. Yes, these so-called businesses are getting fat off people making a business investment, in order to represent their enterprise.

What is the difference between a legitimate small business and multilevel marketing. Again, the majority of small businesses offer a specific type of product or service to turn a profit. In order for most small businesses to grow, the business owner will begin to hire more people. Multilevel marketing do not usually have employees, just owners and downlines. In multilevel marketing, a downline is the number of people under you.  Many reward you for getting your family and friends' money to sign up.

So what is really bad about multilevel marketing? Very few people make a profit from multilevel marketing. If your lucky, the so-called recruiter gives you the impression the product sells itself. I have attended several different types of multilevel marketing meeting. You probably will never witness more high pressure sales tactics. Some try to convince you that this is a once in a lifetime opportunity. Unlike real businesses, multilevel marketing does not require a true employee-employer relationship. Unless the operation is being shut down, I doubt the opportunity won't be there tomorrow. So, beware of multilevel marketing. 


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