Network Marketing Scams – How to Protect Yourself

For the self employed, navigating the topic of multi level marketing (mlm) business opportunity network marketing can be a tricky one. Although many network marketing mlm home business companies are legitimate and can be a good way to make money, there are others out there that cost you both financially and legally. How can you tell the difference? There are two major red flags to watch out for when it comes to mlm businesses, and if you can keep an eye out for them, you will be able to effectively protect yourself from the network marketing scams.

First things first, however: what is network marketing or multi level marketing? In many ways, multi level marketing is a lot like the franchise set up that many of your favorite chain restaurants operate under. The difference is that rather than being limited to a single location, representatives of mlm businesses perform sales on a roving basis – they move around and sell any place they can, rather than setting up a single shop. These representatives, also often called “down stream reps,” buy products from the parent company and then sell them on to stores or private individuals. The exact nature of the financial arrangement between the parent company and the downline mlm network marketing can differ from group to group, but usually there is a profit split on a pre-determined percentage basis. There is usually also some incentive for downline mlm network marketing to recruit new downlines, and they often receive a percentage of the sales made by anyone they recruit.

It is this last part of mlm businesses that can be the first red flag. Although most mlm businesses do provide this kind of recruitment incentive, some companies rely exclusively on recruitment to make money. Downline mlm network marketing recruit new representatives, and collect a joining fee from them (or collect money by selling them merchandise that they are supposed to then sell on), and then no actual selling of products happens. The whole business thrives on the recruitment of new members and the collection of membership fees. This is called a pyramid scam, and it is illegal. If you are investigating a company and it seems like you are unlikely to make any money from actual product sales, stay away.

The second red flag has to do with the product prices you get from the parent company. Some scammers set themselves up as mlm businesses and present products to their downlines at prices that would never allow them to clear a profit. If the prices you are being offered by the parent company are extremely high, and you doubt that you will be able to mark up the prices at all to resale the goods, you’ve likely stumbled on a scam. These scammers typically collect all the money they can from people – often not even delivering the goods that their “downlines” purchase from them – and then they close up shop and disappear, usually reappearing under a new name a few weeks later to perpetrate the scam again. Essentially, multi level network marketing is a business like any other, and if it sounds too good to be true, it probably is.

Questions to Ask Before Joining MLM Businesses

Mlm business opportunity network marketing – it seems like you can barely turn around without bumping into one of them, promising to make you rich beyond your wildest dreams overnight, without you having to lift a finger. They often sound like they could be too good to be true, and often, they are. Having said that, there are mlm businesses that are legitimate and really do offer entrepreneurs a good way to earn extra cash from home. The problem then becomes – how do you tell them apart? Here are some questions you should consider before joining any mlm businesses.

The first question involves the top tier of the company. Who are they? What do you know about them? Are they the founders of the company? Many mlm businesses give you a song and dance about the company founder being some poor, down on the luck man or woman, who took a chance one day with little investment and now runs around with a fleet of private jets and vacation homes. Sounds a little suspicious, doesn’t it? Although it will be nice if that happens, what you really want to know is that the company is headed by business people who are willing to have an honest and realistic discussion about the company. Beware there, the “I was once just like you,” pitch – it’s just emotional manipulation.

The next question regards the product you will be selling. First of all, if no one seems to be concerned about the product, run away. That is a pyramid scam, and getting caught up in it is costly and illegal. Once you know what the product is, do your market research. Is there a demand for it? Who are your competitors? If it would sell well in a normal retail environment, why isn’t the product placed there? This research will help you determine if this plan could really be one of the few money making systems that will work.

Next, find out more about promotion responsibilities. Is the company actively promoting the product, as a franchise would, or do you have to cover all advertising and promotion costs yourself? That could get costly fast, and send your budget well into the red.

Last but not least, figure out when you will see a return on your investment. If the company gives you a lot of talk about long term visions, turn and walk away. There’s no reason you should wait for years for a return on an investment in this kind of venture. You should be looking for something in which you could start making your money back within a few weeks of starting to sell. If things are going to take longer, either the initial investment is out of whack or the mlm network marketing opportunity is one that is destined to fail.

Answering these questions will help you clear up any confusion you have mlm businesses and help you zero in on a mlm network marketing opportunity that is right for you or one that is for the birds.

Working At Home Online

When it comes right down to it, most of us that have decided we want to try making money working at home online. However, there are numerous ads (actually, scams) out there that make it sound like you can rake in hundreds and even thousands a week by just spending a few short hours a day working from home computer. If it is that easy why is anyone working outside the home? This is where myth meets reality.

Is there a legitimate home based business opportunity out there? The answer is “yes”. Are there really legitimate making money online jobs which are home based that rake in the dough? Again, the answer would be “yes”. However, you do have to actually work. These types of jobs are not plentiful and most of them do not pay an enormous amount like is being portrayed by those behind the “work-from-home scams”. One of the most common type of job working from home are the ones in the “clerical field”. These can be anything from billing clerks to administrative assistants to data entry jobs. Other common “work from home” options are in the field of sales, some of these do require some travel, and there are also various work from freelance work from home business opportunities that will allow you to begin making money online.

If you are considering working from home and plan on making money online, you need to be prepared to “work” just like you would if you were in the office or in the (outside) work force or starting a business in a Mall. You will likely have to have the same qualifications, education and experience regardless of where you work for a company whether it is in their office or from your home. The only difference between working from home and in the office is that you will have to have great self-discipline to work from your home and you will need to be highly self-motivated. You will have to provide yourself with a working environment and treat your “work time” as just that. In some cases, it is actually harder to complete work from your home office verses an actual office setting because it is hard for family and friends to understand that you need to be performing your “job” duties even though you are in your home.

The plus side to working at home online is that you will probably have greater flexibility in your schedule and can decide “when” you are going to work. You can’t be asked or expected to “stay late at the office” to help finish a project or task. You will be home more. And since you will be working at home online verses driving to a job everyday you will be saving on gas and travel time. Once you are comfortable and get settled with your “work from home” job or business opportunity, you will be able to find a schedule that best suits your family and still accommodates your “job”.

So, make no mistake, making money online is no easy feat but, if you are willing to actually be working at home online, it can be one of the most rewarding work experiences you will ever have.

The Ultimate Work From Home On The Internet Business

With the current economic situation and credit squeeze, many people are looking at working from home opportunities as a second income. More and more are researching for work from home on the internet opportunities as this allows them to earn extra cash from home as well as spend some time at home with their family members.

Fortunately for these people, there are a number of legitimate internet money making ideas.

Three of the most outstanding markets include:-
- internet marketing where products and services are marketed over the internet
- multi level marketing (mlm) or network marketing where products and services are marketed earning commissions over a few levels
- personal development or self-improvement market

Basically these three markets are very resilient in any economic condition and some even consider them as an ‘iron rice bowl’, a Chinese term referring to guaranteed job security and steady income and benefits.

The internet marketing arena where you market your products and services over the internet can be very cost effective. Done correctly, you will compile a huge mailing list of prospects to whom you can promote your products and services with the touch of a few clicks, all the while sitting at home and working from home computer. By building a good relationship with those on your list, you can get a high conversion rate which in turn translates to high commissions.

If you are in the mlm industry or network marketing today, it is advisable to bring your network marketing prospecting online as you have the world as your market and there are no geographical barriers. Instead of facing rejection after rejection from both your cold and warm markets, prospecting online will help you avoid such rejections. Instead of spending your time travelling from one opportunity meeting to another, you can now conduct such meetings online using webinars and teleconferencing, all the while working from the comfort of your home.

By tapping into the personal development or self-improvement market, you are basically tapping into a huge market with great potential. Everyone needs to learn from leaders in the field and many look to such mentors for motivation and inspiration as well as self-development. As per T. Harv Eker, ‘if you are not learning, you are dying’. Thus every forward looking person will want to look into this area of self development.

So if you are looking for the ultimate work from home on the internet business, seriously consider these three outstanding markets for legitimate money making ideas.

Network Marketing Prospecting Using Videos

People have different styles. Some people are more visual and yet others are more auditory. However when you are able to combine these two in the form of a video, you end up with one of the most effective network marketing prospecting tool. In fact, network marketing prospecting in the traditional way already makes use of the video during opportunity meetings, motivational trainings and self development seminars with great success. So why not use online prospecting for your network marketing today?

Videos have proven to be an effective tool in network marketing by allowing the viewer to engage in more than one of the five senses. The more senses you engage, the easier it is to build a rapport with your viewer which in turn helps in intensifying your conversion rate. The higher the conversion rate, the more successful you are.

Some prospects do not like reading frequently asked questions and find it a chore going through a long list. However with the video, it helps to cut down on various objections there may be regarding your product or service and any support issues can also be handled at this junction.

More and more people are going online and the number of online video viewers have increased exponentially in the last few years especially with You Tube. Creating and directing your own video can be a simple process. Uploading them to free video sites like You Tube and Vimeo can help tremendously with online prospecting as you can generate web traffic from the search engines. Increasing web traffic can help build your list which is crucial in network marketing today.

Video marketing is surpassing article marketing not only for “newness” but also in the effectiveness of link building and direct traffic it generates.

Research has shown that video helps in the retention of up to fifty percent of the information after a fortnight. Just reading alone will cause you to lose up to ninety percent. Thus if you want to be effective in online prospecting, you have to make use of this latest trend of using videos and better still, creating your own videos.

Branding yourself as an expert in your field will lend credibility to your name and face. Once people associate your name and face with that of an expert, you become a magnet and will attract people from all walks of life to your business opportunity.

With that being said, it is not difficult to create a simple video which is effective and will go a long way in your network marketing prospecting. There is no expensive software to be downloaded if you are just looking to create a simple video. In fact, whatever you need can be downloaded free from the internet. Be sure to take advantage of videos for your network marketing business today.