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Business  »  Home Based Business

MLM Business Opportunities and Pyramid Schemes

By: Reginald Broderick

Date Added : August 23, 2011 Views : 543
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MLM network marketing may attract many people as a means to get financial stability and improve on their health. Prospecting for customers online further enhances this system of product distribution. This type of business involves using networks to ensure that intended products reach consumers without passing through other chains of distribution. It is imperative that before taking part in any advertised business opportunity, first establish whether it is genuine.

As a team member, the way to make money is by promoting the MLM business opportunity and products to other people. Some will choose to become clients to whom you only sell the products. They may not be interested in the business but simply want to benefit health wise. Anyone seeking to join multilevel businesses must be careful lest you join a pyramid scheme. First, identify a home based business marketing company and there are quite a number of them available.

You might have stumbled on the business by word of mouth or through advertisements posted on the internet. Apart from making sales, MLM business opportunities give you a certain percentage out of what is generated by the people you signed into the company. These form your team and become down lines.

Multi level marketing firms consider their members as distributors since they exclusively sell the products. These companies do not use the normal channels of product distribution, where a product passes through several stages before reaching the consumer. Hence, distributors are fully empowered to use all resources at their disposal including online MLM marketing. Compared to other sales jobs, these companies reward highly performing members.

The reward schemes include bonuses for hitting certain sales targets, free products and holidays that are fully paid for. You can also get rewards for recruiting the highest number of down lines at a certain period. Recruiting distributors through internet MLM marketing strategies has proved to be very successful. In contrast to an entrepreneur who begins from the bottom, distributors are hugely supported by these companies. They provide you with enough tools to support your business.

However, not all multilevel marketing opportunities are legitimate. Some are in essence, pyramid schemes carefully disguised as MLM business opportunities. Pyramid schemes recruit people too and make use of the internet based business opportunity model. The fraudsters running pyramid schemes falsely make you believe that they can provide you with riches.

One way to distinguish a genuine MLM network marketing business from a scam is by examining the legality aspect. A genuine company has a registered office. Their credentials can be crosschecked with relevant bodies that regulate this trade. MLM network marketing companies are legalized to conduct their business including the use of websites to advertise themselves. The laws of many countries in which these firms operated allow them to promote themselves through techniques that encourage participants to engage in legitimate business. Taking part in pyramid schemes is an offence in countries such as Canada and the United States. You must be alert and on the lookout for these fraudsters. They are just after your money, nothing else!

Jason Fore is the author of this article on Mlm Companies. Find more information on Legitimate Home Based Business here.

Article Source: MLM Business Opportunities and Pyramid Schemes

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