Do you know what sets apart an award-winning successful network marketing company that’s built to last from a legitimate-looking Ponzi/pyramid scheme that is a three to five-year company designed to implode? Yes – No? Well, let me clarify some things for you then.
We all know or are aware of the genuine success stories out there already: you know those successful people/couples walking across the stage receiving accolades, trophies, plaques and whatnot; but how do you recognize the signs of companies that are scams?
Well aside from leaving hundreds if not thousands of scam-infected victims that talk and vomit about the dangers of our industry and how they got scammed, cheated and mistreated; here’s a clue.
All that really needs to happen in the first place is for marketing reps aka “distributors” to tell the real story. What I mean is let and show people the difference between legit and scammy-whammy, and why your company is a real BUSINESS and they should n’ t be afraid to join.
One obvious sign is “Recruiting is Everything”, which hides the fact it’s all about Money because you are getting paid to sponsor new people into the company (program). Hey! Wait a minute, all MLM/networking companies do that they thrive on new people joining their companies.
Yes that’s true, but these pseudo pyramid companies really really focus on this by primarily compensating people for bringing new people into the fold directly or indirectly. The company gets their distributors to keep filling up the seats in the airplane.
A real bona-fide mlm/networking business does promote sponsorship of course, however it specifically rewards representatives for the sales of products and services. A good reputable network marketing company sells its products on their own merit and thereby acquires repeat customers month after month.
If people wont buy your products unless connected to some income opportunity then joiner (business owner) beware.
Signs of a reputable MLM/Network Marketing Company:
- Products or services stand on their own merit. Value is everything. How do they compare with other competing products in quality and price?
- A large amount of customers. The higher the ratio/proportion of regular customers the better.
- Repeat orders by customers – This shows VALUE.
- A high average order size. This says customers/distributors are buying because of real value not just to qualify for a bonus level or promotion.
- Large potential market for the products or services. This means these products or services are consumable. Another question – is the market declining or increasing?
- Does the company have a “unique” or proprietary product which has bona-fide scientific research that stands behind it. How well substantiated they are?
- The company has a special group of “preferred” or “direct” customers that do not sign up for the income /opportunity or business end of the plan, but buy their products directly from the company at a discount.
- Reasonable product-return policies and adequate customer satisfaction for both distributors and customers.
- And more …
This signs of checklist is by no way complete and for the most part is not all said and done in this one post, however based upon your comments and replies I intend to add to the list and give further explanations.
I think armed with this type of information you are in a place or have the posture (confidence) to talk to people who have gotten scammed, lost money, friends, time, family members to some type of pyramid scheme.
People are seriously looking for a better way to live, to make money, to enjoy their time and efforts and to leave a legacy for their families in this certainly troubled economic time. Opportunity of a lifetime – did you do your due diligence?
With best regards,