Is it Worth to Invest Money in Joining MLM Companies?

Is it worth to invest money in joining MLM companies?

Many people are being attracted in joining MLM companies or businesses. For those who do not know about MLM system, these are companies that advertise products and they get members to advertise these products for them, and the members get incentives for every sold product or if they can invite somebody to join the company they will also get rewards, this is called referral. I'm sure you have seen something like these posted in newspapers, walls, and commonly on Facebook photo tags and you may not know what these really are.

Many are easily influenced to join these companies because of these reasons:

1. The Pyramiding or also called Ponzi scheme - For example, In this scheme when a person(person A) invites a person and that person(person B) becomes a member, person A will receive a certain amount of money and also when person B will invite another person, person A will still get an amount, and that's infinite. The more you will invite to join the company the more money you will earn. The people whom you invited will be called your downlines. The company so called this the unlimited earning potential.

2. Free Vacation incentives/ Tours - The company says that all members can go to vacations or tours for free.

But, before you can be a full member you must invest some money first, and for them also to convince members they will just tell you this: "You can consider this a business, all business cannot start if you do not have a capital or investment, just invest thousands and it will give you back millions!".

And to answer the question, is it really worth to invest in these "jobs/business"?

These are the things you should carefully consider first before joining any of these companies:

1. Legality - It may not be that easy to tell if the company is legal or just a spam. You can make a research for yourself the background of the owner and the company itself. Many MLM companies use the names of larger companies and say that they are associated and that these companies tied up with them. And because the members are very aggressive to invite many new members as they can, they will use any method even the illegal ones, and this is why MLM companies are not trusted by many.

2. Age of the company - How long is the company running?. Most new MLM companies are hard to trust, this is because of these reasons: They are simply new/just starting, still few members/staffs/support. The difference of companies that are running for long time is the exact opposite of what i said about new MLM companies. And because MLM companies are just relying on the advertisers, It is practical that advertisers already have the trust in these companies, and just think if an MLM has no advertisers at all, the company will close and who will be greatly affected?, the new members who just paid their membership fee and do not have any earning yet.

I have no intention of attacking MLM companies and to discourage people in joining, but this is to inform people how to choose a legal company to invest their money, that's all. You can comment for any reaction.

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About Author
I'm Alison Alimambo, owner and manager of this blog, an online entrepreneur, blogger, graphic artist, and software developer. Connect with me on Google+ and Facebook. more

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