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The HomeBasedBusinessIdeas.com Blog reviews popular home based business ideas. When looking for home based business ideas be careful because there are many scams out there. However, the home based business ideas and opportunities found on this site have passed an intensive screening process and are proven to work.

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Wednesday, January 7, 2009

Multi Level Marketing Scams – How to Spot Them


 

Multi level marketing opportunities aren't always scam – but a lot of them are. Getting involved in the wrong program can have far reaching implications for you. It can be a drag on your financially and a drag on you personally. In fact, for many people, the personal repercussions of being involved in a multi level marketing scam last much longer than the financial ones. You can avoid the headaches and heartaches by making sure the program that you want to get involved with is legitimate. Here are some ways to tell the good multi level marketing programs from the bad.

First, rely on word of mouth. There are many multi level companies whose names and reputations you know, for good reasons and for bad reasons. Don't discount the things you have heard about a particular company or business just because you get caught up in a pitch. Where there's smoke, there's usually fire when it comes to multi level marketing groups, so if you've heard a company is hard to work for, has a product that doesn't sell or is just a pyramid scam, walk away. No matter how much they tell you that their detractors are just losers who couldn't capitalize on the potential in the business.

Next, take a good, hard look at the pitch they make to you. Does it sound like the bulk of your business will involve sales of a product or does it sound like your main job is to sign up new recruits? Often with multi level marketing, the product takes a back seat, and you may walk away from the pitch not really knowing exactly what you would be selling. You may have some vague notion about selling health supplements, travel or some other product, but you won't really be able to define it. If the real money in the business comes from signing up reps, then that is a pyramid scam and not a business. You should definitely not get involved.

Also, pay close attention to the pitch. Does it even make sense at all? Do you really, in your heart of hearts, believe it will be as easy as they say? Do you really believe that your friends and family will jump at the chance to be your customers/victims? Do you really think that for no time commitment you will be able to pull in tens of thousands of dollars every month? If it really worked like that, everyone would be doing it. Don't buy the baloney about everyone else not recognizing the opportunity – if it was legitimate and worked like that, word would get out. People would be doing it. If the pitch sounds unrealistic, be very wary about taking things any further.

Last but not least, trust your instincts. If you wipe away all of the excitement you may feel about a new business opportunity, your gut will tell you if it is really right for you or not. Listen carefully to what your feelings are telling you – you could save yourself a lot of money and trouble.


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