Monday, July 25, 2016

WHAT MLM COMPANIES DON'T TELL YOU 1: IS YOUR MLM A PYRAMID SCHEME?



I will be doing a series on "WHAT MLM COMPANIES DON'T TELL YOU".  Why is this important?  Because I found out the hard way it's what they DON'T tell you that makes the difference.  




Things like...
  • did you really get in on the ground floor or were you 6 months too late?   
  • do they pay people from other MLM companies to come to theirs and bring their teams offering them a generous compensation for that?  
  • do MLM companies "load legs" for those they bring in from other companies?  
  • can you really advance to the top rank of your company simply by selling product without signing one person under you? 
  • are you really in business for yourself? 
I'll answer these and many more questions in the coming weeks (as time allows).  


This first one is evaluating your company for a pyramid operation.  Are you SURE you're not part of a pyramid scheme?

I found a great article here about MLM's who show 4 red flags of a product pyramid scheme. Guess who made the list?  PLEXUS!  (among many others).  

"After the most extensive research ever done on MLM as a business model, Dr. Taylor has identified four (and in most cases five) causative and defining characteristics, or “red flags,” in MLM compensation systems that lie at the root of the deceptions and horrendous loss rates suffered by MLM participants. Where data is available, approximately 99% of all participants are found to lose money, after subtracting incentivized purchases and minimum operating expenses."  (See more here)

Think you don't work for a pyramid scheme based company? Think again! Check out the red flags for yourself with Dr. Taylor’s 5-step do-it-yourself MLM evaluation quiz found here.

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