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Multi-level marketing (MLM) or network marketing programs are a method of sale of goods or services through distributors. These programs typically promise that if a dealer will receive commissions for sales and where people are recruited from distributors. These recruits are referred to as your "downline."
Some multi-level marketing programs are legitimate. However, others are illegal pyramid schemes. based pyramids, commissionsthe number of distributors recruited. Most product sales to these distributors - not to consumers in general. The goods or services ranging from auto leases to cosmetics to vitamins, only serve to offer schemes to look legitimate.
On a pyramid is a risky business, because the vast majority of participants lose money, the few happy to pay for a reward. Most people end up with their money for anything other than expensive products, or showmarketing materials, are forced to buy.
If you think that seems a legitimate candidate for multi-level marketing program, then take the time to check everything about the program. For example:
What is the company's track record? What product is selling? If you sell products to the public? Is there evidence to support its arguments, it makes about its product? Is the product competitively priced? And 'likely to appeal to a large customer base? Asmuch the investment is to join the program? Is there a minimum monthly sales commitment to earn a commission? Would you be required to recruit new distributors to earn your commission?
Be skeptical when a trader said that for the price of a 'start-up kit "of inventory sold and sales literature - and sometimes a commitment to a certain quantity of the product or service each month - you'll be on the path toward wealth. Often, participants spend a lot of money to build "their business"through participation in training programs, purchase of assets of the purchase or sale of the products are too often their purchases everything ever see for their investments.
Also, if you decide to become a reseller, you are legally responsible for complaints about the company, its products and business opportunities it offers. This applies even if repeats credits reads a company brochure or advertising. The Federal Trade Commission to adviserepeat review of the research behind claims about the performance of a product before making such statements to a potential customer.
Also, if you solicit new distributors, you are responsible for claims that have the potential profit of a dealer. Make sure that the opportunities presented honestly and to avoid unrealistic promises. If those promises fall through, remember that you are responsible.
The Federal Trade Commission (FTC) recommends you use common sense whenEvaluation of a multi-level marketing opportunity and consider the following advice before making a decision:
Before Avoid any program that pays commissions for recruiting additional distributors. May be an illegal pyramid.
According Beware of programs that ask new distributors to buy expensive shares. These programs can close quickly - and can also be thinly disguised pyramids.
Third wary of programs that make money through continued growth of your request"Recruit downline" commissions on sales of new distributors you - rather than the products they sell.
Fourth treatment program, the wonder, to sell products or promise enormous earnings claim. Just because a promoter of a program, a claim does not mean it's true! Ask the promoter to support the program, all requests for cold hard evidence.
Attention paid before the fifth shills - decoy "references a promoter of programs, describe their fictional success deserveMoney through this program.
Do not Ever sixth register or pay into a "chance meeting", or any other high-pressure situation. Insist that you connect to the time to carefully reconsider your decision. Talk to your spouse or partner, Friend expert and an accountant or lawyer.
Seventh Do your due diligence! Check with the Better Business Bureau and state Attorney General's Office on any program you are considering - especially when the claims about the product orYour potential earnings seem too good to be true.
The FTC works to prevent the consumer to stop fraudulent, deceptive and unfair business practices in the marketplace and consumer information needed to spot and avoid. To view the complaint or to get free information on consumer issues, visit http://www.ftc.gov or call toll free, 1-877-FTC-HELP (1-877-382-4357) TTY: 1 - 866-653 -4261.
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