Revealing the MLM Scams: The Truth Behind
MLM is a business offering better opportunities to earn a lot of money compared to other businesses as well as other work. However, this statement is not working for MLM scams. The truth is that or almost everyone who invests, MLM ends with a loss of money. Less than 1% of all MLM distributors earn a profit and those earning a living in this business has much smaller percentage again. Sales and marketing are the main cause of this failure. However, if the business is more feasible, sheer mathematics would severely limit the opportunity. The MLM business structure can support only a small number of winners. If someone needs 1000 people of downline to earn a sustainable income, those 1,000 people will need one million people of downline to get the same opportunities. Therefore, how many people can realistically be enrolled? What appears as growth, in fact is constantly churning. Money that goes into the pockets of the elite winners comes from registration of losers. With no limits on the number of distributor area and no evaluation of market potential, the system is inherently unstable.
Network marketing is the new, the most popular, and effective way to bring products to the market. Consumers like to buy products by the door-to-door way. However, for MLM scams, if you follow the mainstay MLM activity in the form of membership sales and observe the basic law called the retail sale to consumers one by one, you will find the unproductive and impractical sales system. Retail sales to one by one consumer are an old-fashioned way, not the trend of the future. Direct sale one by one to a friend requires people to change their buying habits drastically. Someone must restrict their choices, often pay more for goods, buy inconveniently, and with clumsy conduct business transactions with close friends and relatives. The lack of impropriety (unfeasibility) selling door-to-door is the reason why in fact MLM scams is a business that constantly sells the opportunity to become a distributor.
At some point in the future, all products will be sold by MLM. Retail stores, shopping malls, catalogs, and most forms of advertising will die because of MLM. Less than 1% of overall sales are made through MLM. Lot volume of sales and purchases by new distributors are actually paying the price of admission to a business that they will soon abandon.
MLM will not replace the ways of marketing that now exist. MLM absolutely cannot legitimately compete with other marketing approaches. But more, MLM scams represents a new investment scheme couched in the language of marketing and products. MLM product is actually a membership (being a distributor) sold by way of misleading and exaggerated promises of income. People buy products in order to secure positions on the sales pyramid. The possibility held out is that you may become rich if not from your own efforts then that wealth comes from someone you do not know who might join your downline. MLM growth is a manifestation, not value to the economy, consumers, and distributors, but rather a manifestation of the high and insecurity economic that wishes to become rich easily and quickly. MLM scams grow in the same way with the growth of gambling and lotteries.