First you need to understand the difference between MLM and pyramid/ponzi.
MLM and pyramid are actually 2 different things. MLM is legal. They have an legitimate product to sell. Pyramid and ponzi is illegal, they don’t have a product. Just using the money from the lower tier to pay the upper tiers.
Pyramid usually uses MLM as a front. Hence the misunderstanding and negative outlook on MLM.
For MLM, It’s just a choice the company made to sell through MLM instead of through direct stores. It makes sense to the companies because they get Super on sales people without having to pay a salary and shop front. It’s MLM cause they get these sales people to recruit new sales and gave them benefits for recruitment of good sales people (key note benefits not for recruitment but good sales people). All this is done to improve the sales of the products. Think free lance insurance agents.
Then under MLM there are legitimate product. Things that actually improve people’s life. Tupperware is a good example. I personally join Herbalife as consumer. There are definitely a more out there. One way you can check how big these companies are.
And then there are fake products. The fake ones are really bad. Usually they will try to sell huge amount of products on you at once. Then run with the money.
Even under the legitimate MLM companies, you need to watch out for the type of sales people you are meeting. Especially if they are trying to get you to join as sales, by buying large amount of products. I treat and judge the sales, like financial Advisors, whether they are just try to sell to you to get commission from sale of product or actually think of your situation before making suggestions.
If you are not thinking of joining, it actually isn’t a big issue just ignore everything. If you are buying as consumer just use common sense. If it sounds too good to be true, it probably is fake. If consumption product. Please check if it has all the required licenses.
Rule of thumb.
Whether as sales or consumer. Always start your purchase with 1 item, even if it’s more ex.. Don’t be greedy for discount. If possible get free trial.
First you need to understand the difference between MLM and pyramid/ponzi.
MLM and pyramid are actually 2 different things. MLM is legal. They have an legitimate product to sell. Pyramid and ponzi is illegal, they don’t have a product. Just using the money from the lower tier to pay the upper tiers.
Pyramid usually uses MLM as a front. Hence the misunderstanding and negative outlook on MLM.
For MLM, It’s just a choice the company made to sell through MLM instead of through direct stores. It makes sense to the companies because they get Super on sales people without having to pay a salary and shop front. It’s MLM cause they get these sales people to recruit new sales and gave them benefits for recruitment of good sales people (key note benefits not for recruitment but good sales people). All this is done to improve the sales of the products. Think free lance insurance agents.
Then under MLM there are legitimate product. Things that actually improve people’s life. Tupperware is a good example. I personally join Herbalife as consumer. There are definitely a more out there. One way you can check how big these companies are.
And then there are fake products. The fake ones are really bad. Usually they will try to sell huge amount of products on you at once. Then run with the money.
Even under the legitimate MLM companies, you need to watch out for the type of sales people you are meeting. Especially if they are trying to get you to join as sales, by buying large amount of products. I treat and judge the sales, like financial Advisors, whether they are just try to sell to you to get commission from sale of product or actually think of your situation before making suggestions.
If you are not thinking of joining, it actually isn’t a big issue just ignore everything. If you are buying as consumer just use common sense. If it sounds too good to be true, it probably is fake. If consumption product. Please check if it has all the required licenses.
Rule of thumb.
Whether as sales or consumer. Always start your purchase with 1 item, even if it’s more ex.. Don’t be greedy for discount. If possible get free trial.