Advertising and Marketing

Multi-Level Marketing is alive and well in the United States and millions of Americans are involved in these businesses which they run from their home and even buy the products from them selves and for them selves.

Unfortunately all too often a multi-level marketer will embellish their own financial success in the business, as well as the reality of the attrition rates when building their down lines in sales presentations. In fact the Federal Trade Commission (FTC) has identified this as one area where consumers have encountered fraud and misrepresentation.

In an official report from the FTC on proposed rule changes for business opportunities, multi-level marketing companies and Franchises the FTC states;

“Indeed, complaints against pyramid marketing companies consistently ranked among the top 20 injury categories reported in consumer fraud complaints to the Commission.91 For example, during the period 1997 through 2005, pyramid marketing schemes ranked among the top 20 injury levels each year, except in 2003, as follows: State regulators report similar data. For example, a Florida business opportunity regulator noted that in his office, 60% of the written complaints received pertain to pyramid marketing companies. “They last about six months and they’re gone.” James, 20Nov97 Tr at 115-26. The State of Washington also reported a large number of pyramid marketing scheme complaints. See WA Securities, ANPR 117 at 2.”

YEAR RANK INJURY

1997 9th $352,769

1998 5th $1,858,787

1999 10th $2,011,012

2000 4th $12,632,132

2001 10th $10,685,083

2002 18th $9,685,722

2003 (not in top 20)

2004 18th $2,264,112

2005 17th $3,347,443

Well we can certainly see why authorities are worried about MLM Multi-level marketing companies and home based pyramid-marketing schemes. These new proposed rule changes may in fact address these issues, but no one is certain that the misrepresentation will stop. If you own an MLM business perhaps you might wish to comment at the FTC about this upcoming proposed rule change? Consider all this in 2006.

Lance Winslow

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Tags: ftc, Multi-level Marketing, Possible Fraud, proposed rules, Pyramid Marketing Companies, regulations

When one leaves a multi level marketing meeting often what comes to mind is that is is cult like. But why do so many people feel this way when they learn about MLM business opportunities? Are MLM businesses really cult-like and is that the way they keep a tight knit group like that?

Many believe it is some say; “Absolutely!” I suppose for some who do not have the inner will, they can find strength in a group. That is to say that those who could never consider themselves capable of joining such a group will find themselves becoming involved.

Yet what I find in every group is a cult’ish culture where a few who can lead and a bunch of poser follow, so if you see this in an MLM group some say beware. This is how gangs operate; think about it. That is not to say that MLMs are gangs preying on the weak.

After all sports teams are cult like and of course so are groups like the Green Berets or Navy Seals, so on the positive side there is that, but you have to prove yourself to be in those groups. You have to be the best to make the team. Many say that in a Multi-Level Marketing Company all you have to do is leave your ideals and integrity on the table and spout off at the mouth.

Of course that is not really fair to all the people doing it right, but I think the statement can stand for the moment in a limited context of what is wrong with MLM or at least some MLM groups. I mean those folks will sign up anyone with a pulse. While I’ll bet the only qualification is you have to have had someone in your family once received an AOL disk or CD? Consider this in 2006.

Lance Winslow

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Tags: beware, Cult Like, MLM, Multi-level Marketing

Mlm-ers who are working impossible mlm programs are like smokers, though they know the inherent danger in smoking, quitting is difficult. Like pools baiters they keep looking forward to the big money, while investing time and money all the time.

Having said that, the success or otherwise of any MLM or Network Marketing program depends on those promoting it, and the amount of honest work and commitment put in by the multitude of down lines, honestly supported by their sponsors, to attain the promised success .

So take a good look at the man or woman pitching you with fabulous residual income and see how the program has robbed off on him or her. Ask them to tell you, better, show you the prove of how long they been in the program and how much they have made so far. Do not rely on what he hopes to make in six months - Forget the matrix story, it could just be a scam bait.

Since the 1930s when this overly misunderstood and misapplied system of business reared its head, millionaires have been made and countless persons have also had their fingers burnt beyond repair.

KNOWLEDGE IS POWER

The problem of mlm failure revolves around lack of knowledge of the business. Anyone going into any business, be it mlm/network marketing or whatever, should first evaluate and understand the risks and expected benefits, the proclivity of achieving success etc. before setting up shop or joining any program. There are genuine and counterfeit mlm companies known as pyramid schemes.

But what I find is that most people, hungry for money, go into any mlm just for the money without the knowledge and honest commitment necessary for success. The question is how does anyone who does not know how to drive intend to make a successful journey driving a vehicle to his destination safely?

That there are lots of misrepresentation of mlm on what level of success one can achieve in any circumstance is quite obvious when you listen to most mlm recruiters. Mlm scam, therefore, seems not to be basically carried out by the companies, but mostly by the recruiting down lines’ inordinate quest to make the promised exponential income.

The whole mlm saga is like religion and believers, who believe in obvious impossibilities just because they are told that it is true.

Without holding brief for mlm companies, let me state that most mlm programs are set up to do what the companies say they will do. The easiness or otherwise of attaining the promise could be misrepresented to mislead, which amounts to scamming of sorts.

The bane of mlm-ers is down line recruiting and the lies with which they try to make it easier to do. The result, however, is most recruits can’t recruit other recruits, not to talk of large numbers required to make exponential income possible. If you are able to honestly recruit down lines who recruit others, causing duplication and multiplication of your effort, then you are an mlm success. Because you will continuously reap residual income from the network you have thus created.

The general scenario however is that even though those who begin early in most mlm programs make the millions from down the lines before the bubble might burst and thousands of naive people carry the can, it is not that easy to readily absolve mlm from being a scam, nor can you categorically call mlm a scam.

What mlm is, therefore, depends on the knowledge and experience of he or she who is defining it.

For me, if you read enough about mlm, you will be able to stand your ground against fraudulent mlm recruiters. You will also be able to identify with genuine product and services backed mlm companies distributing consumables which prices are affordable for every day use.

Those mlm companies whose products are expensive and not of every day use can work for pioneers in the short term, and ruin the down liners in the long run. Beware. The worst scenario is to join a company promoting just down line matrix without useful affordable consumeable everyday proudcts.

Neshah writes for your success - read more mlm articles at tinyurl.com/y2stxk to prepare you for mlm success.

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Tags: down lin, expoential income, MLM, Multi-level Marketing, Network Marketing, program, residual income