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Learn To Work From Home With Our Experts
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Released 15 July 2010
What is the difference between
Multi-Level-Marketing (MLM) and Pyramid schemes?
The difference is very small but one will make you rich and one will
rob you and put you in jail. Pyramid schemes are the easiest to
spot. They ask you to sign up, send money and ask somebody else to
send them money and you. The question is where are you on the pay
role. Are you at the top, the middle or the very bottom? And will
they pay you what is due to you?
In
the above example you do realise that no worthwhile service or
product exchange took place. Sometimes a worthless product is used
as a prop to try and disguise the pyramid as an MLM structure.
The value of the product or service makes a big difference and that
actually drives the sales forward. In an MLM there is customer
service, the capacity to deal with the size of the sales force and
the company has existed for some time and has other products on the
market. If you are looking for customers to join under you then
focusing on the sales of the products or service can get you the
sales you need.
Building a down line can be your secondary business depending on
your preference. I personally prefer to build a down line and let
somebody else run the actual daily sales that will feed whole down
line. The best persons to do that is the company not the down line.
The down line should be the companies customers and not your
customers for the MLM to work. You can concentrate on building
leads.
In
a pyramid scheme you should recruit 2 people per period or you will
not make any money. In an MLM you can just be the customer, enjoy
the product at a discount and live your life. There is no need to
make money in an MLM business, they just use the reward structure of
the MLM to cheaply build a sales force and a customer base.
I
do wish to point out that not all MLM home business opportunities
are created equally. Some are bad because they are not well run and
run the risk of collapsing at any moment and costing the members
promotional money and time. The good ones survive the start up
grind, pay on time, provide excellent customer support, innovation
and strong branding. By noting the subtle difference between a good MLM home business opportunity, a bad MLM home business opportunity and a pyramid scheme you will be equipped to survive the plunge into financial independence. Remember to enjoy the journey and the experiences learned. Have lots of fun and it will pay off in time.
How to avoid work from home
scams?
I
have been conned before by a few work at home scams and survived to
tell the tale. I almost fell for one of the many Nigerian 409 scams
and the
How did this Nigerian 409 almost get me? I became a part of their
"easy bait" database when I replied to the first email. It was
weird, but I will tell you how it ran so that I can at least save you
the grief.
I
was contacted randomly by "Barr John" a lawyer from
Barr John contacted me saying that he cannot claim for me and he
needed me to secretly claim on his behalf and share some odd $ 21
million dollars. Right there I should have walked away. Right now I
walk away from any deal that claims returns of that magnitude
secretly. It's a scam and you are being conned.
The best way to deal with too good to be true is to not be fooled
into dealing with the contact alone. Ask your wife or accountant or
local banker to assist you. Even a lawyer if you know one. By using
a team of advisers you will avoid making emotionally charged
decisions alone.
If
it turns out to be legitimate, the lawyers and accountants will only
be happy to accept their fee when they assist you in the endeavour.
Danger signs you should look out for is verifying the contact by
calling their reference (it's usually their fellow scammer). Do not
pay them any money, no matter how small to release the big money. Do
not go to their place of origin to collect the money or cheques. Do
not give them your Identity information nor where you physically
live as you could be visited by one of their friends who just happen
to be in your country. Work from home scams are very easy to spot if you know what to look for and by keeping your emotions (especially your greed) in check.
Your
intuition will be not to trust them and you will be right. Do not
override your gut instinct just to be polite. Be short with them and
highly sceptical and watch them work very hard to win you over.
1)
Opening email jobs and letter stuffing jobs are now illegal in
2)
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