As a professional network marketer, you should always conduct your business in an ethical, open manner with integrity. It’s your duty at all times to conduct your business according to the laws of the MLM industry. There are certain things you just can’t do, or you’ll be breaking the law.
One of those is making an income claim, or showing off how much money you’ve made to potential prospects. You can’t make recruitment claims either. These are strictly against the law. Are you surprised? I don’t blame you if you are, because you the all hype and hooplah on the internet everyday. You think it’s normal.
Here’s what I found in Google Ads after searching several network marketing related terms: “I recruited 3619 in 13 days – See How”, “Make $1050 Today Online”, “Make Huge Monthly Network Marketing Profits”, “$1250-8K Residual for 1x$325″. Every single one of these advertisers are breaking the law. [click to continue…]
In this world, we have a wonderful industry of network marketing, where there’s an awe inspiring culture of people connecting with each other, believing in each other and helping each other achieve success. However, there is a dark side to this industry that’s taking advantage of the good will of the people who participate in it.
There is an over abundance of pyramid schemes who are masquerading as network marketing opportunities. Pyramid schemes by definition are illegal because they are only sustained by the endless recruiting of new participants into the scheme and they impoverish 99 people for every 1 that benefits from participating.
Being a rep for a pyramid scheme is bad, bad news. Over the past 10 years, the Federal Trade Commission (FTC) has shutdown 17 illegal pyramid schemes and collected more than $90 million lost by victims. But more and more, the Government is not just going after the perpetrators of pyramid schemes, they are going after the top earners as well. [click to continue…]
Efusjon, often spelt with a lower case ‘e’, launched in early 2009 with great hype and fanfare. The opportunity to make enormous amounts of money with efusjon was forcefully marketed on the social network, Facebook. Indeed, some members who used Facebook literally became efusjon extremists.
Well right now, efusjon is being sued in California for operating as an illegal pyramid scheme. The reason for that is the only way for distributors to make money in efusjon is to recruit people into the network.
See, a network marketing business model is sustainable because there is the constant movement of a quality product to the end consumer who’s happy to pay for it. A pyramid scheme is a non-sustainable business model that impoverishes 9 people for every 1 that gets rich.
This case demonstrates that just because a company has a tangible product and is using a multi-level marketing distribution channel to get it into the hands of consumers, it does NOT mean that the company is not running an illegal pyramid scheme. [click to continue…]
There is a major scam taking advantage of the upward trend of online shopping. The company is growing very fast, but many people do not realise the whole setup is a scam yet.
A major red flag is the location of the headquarters of this company – it is located in the same place as several other fraudulent operations. I won’t mention the company name, because I don’t want to upset anybody, I just want to help you avoid being deceived.
It’s an online shopping portal where people can go to buy just about everything from laptop computers, to iPhones, to gift cards, to vaccuum cleaners. This company’s aim is the make shopping fun with reverse auctions – where people bid down the price of an item until it’s right for them.
But the company’s product are not the items their selling on their portal. The company’s product is – get this – credits. Specifically, “bidding credits”. [click to continue…]
Right now there is so much hype on the internet about making money in travel. The travel deals are touting that it’s an $8 TRILLION per year industry – whether this is true, I don’t know, but I doubt it – if you just get the tiny-est slice of this pie, you’ll be rich.
The problem is, most of the travel deals are not selling travel – they are just pretending to be. There is nothing wrong with selling travel packages and getting paid a commission. If you can selling a luxury holiday package and save your customers 60% if they had have arranged that package themselves, then more power to ya. But that’s not where the travel deals are making their money.
There may be a few legitimate online travel deals using a multilevel marketing pay plan, but they are few and far between. They can’t make money selling travel. They just can’t, the profit margins are too low. The industry is too competitive. You can find many great, competitively priced travel deals just by asking Google. The travel MLM’s are making their money on selling memberships. Here’s how they work… [click to continue…]
Thank Goodness for the internet. The internet has liberated a lot of struggling network marketers who didn’t have a gnat’s genital of a chance of success in their old companies. It has allowed these people to connect with great mentors and coaches, allowed them to plug into “turnkey” systems established by leading organisations.
The internet has allowed thousands of network marketers to brand themselves for very little cost and reach out to the best prospects and become highly successful with alternative approaches to building a business.
Unfortunately, the Internet has also created a wave of online scams that have made many victims of good, innocent, but gullible people who simply did not understand what they were involved in was illegal. Hence it’s my goal with this article to help you understand what’s legitimate and what’s not. [click to continue…]
