As a network marketer, it’s always best to look out for the pyramid schemes because they do exist. I have been fooled by a pyramid scheme before and you could lose a lot and they do cause a lot of problems if you are not careful and dont know what to look for.
I really hope this can help anyone out there who is not sure about pyramid schemes. Before you commit yourself to a particular Network Marketing Company, you should take the time to evaluate. To this very day, network marketing has gotten a bad rap because of pyramid schemes. Pyramids, which exist solely for the purpose of signing up recruits, are illegal in many states.
The global of suspicion they have cast over network marketing as a whole is unfortunate, because their are a lot of network marketing companies out there running a honest operation. What you want to do is to start your research by asking whether the company’s product or service is legitimate. You can call your local Better Business Bureau to see if complaints have been filed against the company.
Don’t rely on the advice of one of the company’s super salesperson. Instead, ask that person for a copy of a monthly sales report, or better yet, talk with unbiased folks who have had dealings with the company but who won’t be selling to you.
As with franchises, beware of breathless pitches in the mail, over the phone, or in small business magazines that promise you quick profits with no experience required. These may be generated by ghost companies trying to sell you information about bogus business opportunities.
Next ask whether the company offers strong, ongoing educational programs and a sound mentoring program. Learn about the organization’s systems and compensation plans. Get to know the distributors. Do you respect and enjoy being with the people who work for the company?
Your best bet is to select a business with a good training program, satisfied distributors, a well oiled distribution system, and a compensation plan that has been successful for years. Once the company meets all these criteria, then ask yourself whether the company’s product or service is one you believe in and can share confidently with somebody else.
If, after all this legwork, you’re convinced that you’ve found a business with a track record that also sells something you can stand behind, then you’ve laid a solid foundation for future financial independence that you can work with confidence.