- See more at: http://blogtimenow.com/blogging/automatically-redirect-blogger-blog-another-blog-website/#sthash.CpFtWfic.dpuf Traders digest: SOMETHING I COMPILED ON MLMs

Sunday, 12 January 2014


Its out of context but I hope it will be a useful read

The Federal Trade Commission in the US which regulates multi-level marketers, warned in its revised "consumer protection" page on its website as follows:
“The Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it's not. It's a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money”.
A pretty simple explanation on that is: would you still make money to sustain your income if you opted not to recruit new members? As in, would the product still sell in normal circumstances not induced by the scheme? Is it a commercial product?
Our government doesn’t offer any clear guidelines on MLM businesses that is why we should expect a huge number of MLM businesses to come up.
The reason why Multi-level marketing Businesses are considered pyramid schemes is because there are a finite number of people in the world. This means that, even if the entire population of the world joined the MLM it would still reach an end point where the last people in the chain lose money effectively. It is estimated that 90% of people who join MLM businesses actually lose money.
Some of the guideline questions you should ask yourself before joining an MLM business are:
"What's the company's track record? What products does it sell? How does it back up claims it makes about its product? Is the product competitively priced? Is it likely to appeal to a large customer base? What up-front investment do you have to make to join the plan? Are you committed to making a minimum level of sales each month? Will you be required to recruit new distributors to be successful in the plan?"
Bottom line, just don’t rush into any business because of the success stories of the people at the top of the pyramid.

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