So many small business ideas and work from home ideas exist that it is difficult to weed out what is beneficial and what is a hazardous waste of time. Fortunately there is a multitude of good business opportunities available for a person that wants to affiliate and use an established program.
One area, though, I am going to look at on this page and point out a couple things, hopefully to protect the reader.
One of the great motivators that some companies use is the basic ‘Get Rich Quick’, you will be earning huge dollars within a couple weeks approach. And that approach has caused some serious grief many times.
5 scary aspects of MLM promotions.
- Is the product to be sold to family and close friends and then hope that they will sell to their family and friends?
- Is it a pyramid such that the people at the top are making huge amounts whereas the person selling to his family is making very little?
- Is the reputation of the company good. or is it’s reputation not so good? Try this, do a search on the company and after its name put ‘complaints’ or ‘scam’.
- Are there excessive joining fees?
- Are there prohibitive minimum purchase requirements? Some companies want you to carry excessive inventory packages that are not always marketable.
What is risky about an MLM operation is that as time passes and a person devotes long hours to sales, they are not building for the future, at any time the MLM company can close and the person at the bottom of the pyramid is left only with memories.
The primary bad MLM system is the one that requires you to go to your sister and pressure her to buy and become a representative herself, that business model is not one that will stand the test of time and actually often ends with a financial loss. MLM is one of the common small business ideas that requires you to do your due diligence.
There are many excellent affiliate programs to participate in, backed by responsible affiliate marketers and top notch companies, but there are no ‘Get Rich Ones’ that warrant your time or investment.