How to detect potential online scams
I am excited to write this blog post how to detect potential online scams. It comes from my heart and from the pain of my own personal experiences. In my pilgrimage in the network marketing industry I would say that one of the most common objections I encounter from persons in the Caribbean is that they don’t trust these things, this looks like a scam, no this is a ponzi etc. I always stress to persons who would like to venture into online business the importance of “due diligence”, that is taking the time to check and recheck as much as possible. The reality is that there are thousands of legitimate online businesses but there are perhaps hundreds of scams out there too. What is neded is not to despair or paint all online businesses with the same brush, but a logical and systematic way to test and know how to detect potential online scams. Time for some truth, are you ready for it?
THE TRUTH ABOUT MULTI LEVEL MARKETING
It’s called by many names . . . mlm, multi-level marketing, network marketing, networking and by some – pyramid schemes.
Multi-level marketing is not, and never has been, a pyramid scheme! There is a world of difference in the two and it is so misunderstood that many people (who really need an extra income won’t become involved.
Multi-level marketing (MLM) differs from a pyramid scheme in one basic way. With multi-level marketing you can only earn a commission on the sale of a product. In a pyramid scheme you earn a commission on the recruiting of distributors . . . so the emphasis is on recruiting bodies and not on the sale of products/
Example: Let’s say that Joe signs up as a distributor under Tom . . .
Signup could be free or there may be a distributor kit purchase required. Tom makes no money when Joe becomes a distributor – from the kit or in any other way, unless Joe begins to sell the product offered by the company.
In simple terms . . . with a pyramid scheme, you make money by recruiting distributors and not by the sale of products. This is illegal so it’s best to stay away from that type of program.
The ideal MLM company has a product to sell, a reasonable price, and that generates reorders on a regular basis for residual income.
There are a ton of profitable and legal mlm companies. I will continue to write blog posts here to describe and define the qualities and types of legal ways of making money online so I invite you to subscribe to my blog. Thanks for reading. If you thought this was useful info please share the post with others via the social media buttons at the top.