by damoose88 on Tue Mar 17, 2009 11:56 pm
I never stated that the author claimed these were scams, however, his 'red flags' are aspects of MLM that are required to make the industry what it is. Multi-level-Marketing is just as it sounds. Individuals through multiple levels of the company market the products that are offered by the company. If there is no product, or there is no method of compensation beyond one level, then it simply is not Multi-level-Marketing. Simply because a company utilizes the MLM structure does not imply the company is bad or the system is a scam, it simply means that this is the structure they use to operate their company. If the leadership is corrupt, the distributor will most likely fail. If the product is poor, the distributor will most likely fail. If there is no one to effectively teach the system, the distributor will almost certainly fail. These three situations do not indicate a scam, they indicate critical faults within the company's structure. This is why it is crucial that the individual make sure he or she has read and understands both the Distributor Agreement and the Compensation Plan for that specific company, as well as look over the entire product line to determine if it is something you believe in and can effectively market. Most importantly, however, is that the individual absolutely must find an experienced and knowledgeable individual who understands the system and who can effectively teach the system to the individual. These four criteria are critical to understanding what will be required of you in the MLM industry as well as allowing you some insight into your odds of success within the industry. If the product line does not excite you, or you do not understand how the company will pay you, or you do not have anybody who can effectively teach you what you need to know, you are guaranteed to fail.