How to differentiate between a good and a bad MLM / Network Marketing Company?

Copyright © Cecilia Chang

Do you once join or are you in these business now?

MLM or Network Marketing which is a very good sales strategy starts out from the western countries.

Its strategy flow goes like this, a networker sell products to consumers thus consumers also become a networker so on. This network expands rapidly and slowly into a human pyramid whereby people expand from one > two > four and so on...

This kind of business saves rental and advertising fees. Do you agree? But this business has recently become worse. Many companies open up to cheat people. Below is a case study extract from a newspaper.

A 20 yrs old son forces his dad to buy a normal mattress at $2.7k. He says that the special mattress stimulates blood circulation, keep one’s fit and when use for a long time, it can prevent cancer and high blood pressure. Is it so fantastic?

An actually healthy dad gets so mad that he may now have some symptoms of high blood pressure. He’s been in the business world for a long time and experienced so many things but never came across such thing before. It’s not that he can’t afford to buy that mattress but he thinks that if he buys, it’s like criticize his knowledge.

His son goes to seminars, meetings and he came home to force his dad to support him in his business. If his dad doesn’t buy, he’ll not meet the criteria to be a networker. Showing others that he never put in effort in his first step towards his business.

His son was actually in England for his studies. But while surfing around on the web, he found this company and joins them so he stopped his studies without informing his parent. As his parent to motivate him, they have no choice but to allow his son to continue with his business.

Slowly his dad feels that things are not getting right. He never goes out to promote his products to other people but only to their relatives. His company even called him during midnight, asking him to go for meeting. All his colleagues smoke, drink and party while listening to successful people experiences.

How would a good company ask people to learn such unhealthy things?

Most of these companies are just cheater by using pyramid strategy to con innocent people’s hard earned money.

In the company system, in order to join, you’ve to buy an expensive product package as the ‘membership fee’ to become a network marketer. They claim that in one or two month time, you can earn an income around $100k - $200k. That’s really a lot of money and very attractive!

Teenagers, who just finish their studies, have not seen the entire world yet, yearn for immediate success. Their demands are high so they are easily being brainwash by the MLM Company thus leading them into coning people and stopping their studies. Brainwashing method succeeds according to youngsters’ mindset and needs.

Since than this pyramid selling strategy is name ‘finance ugly society’.

There are two main points to take note in a pyramid company:

1. The products price is higher than any others and they are not doing any useful help to our body.

2. The commissions are not from products or services provided, it comes from other people ‘membership fees’.

Companies claim to have high ROI grab those people who want to get rich quick, can earn for doing nothing, hope to be millionaires over midnight to attract young people. Would there be such good things in the world?

The people, who wanted to get their lost money back, join in the group to earn back their capital using dirty tricks. This snowball rolling strategy gets more people being cheated. These companies denied they are a pyramid company but claims that they are just network marketing or level selling groups.

So beware and take note of the above points to prevent yourself from joining into a crap company.

‘No pain, no gain’ is the word.

About the Author

Cecilia Chang is an internet marketer and articles publisher at http://www.articles.sgonliners.com. Her personal business blog is located at http://www.blog.sgonliners.com. She builds a human edited web directory at http://www.sgonliners.com. If you want to suggest and promote your site, please don’t hesitate to submit it.