I recently accepted a friends invite for an evening get-together.
As soon as I arrived, I realized I wasnt coming over for the usual conversation and cocktails.
I have this amazing opportunity to share with you!she said enthusiastically.
The opportunity turned out to be a multi-level marketing presentation for a company that provides satellite services and utilities.
I could earn money by simply signing up friends and relatives for services they used anyway.
This debateisnt a new one.
Here are the argumentsforandagainstmulti-level marketing.
7 Ways to Make Money if You Hate People
Do you avoid people too?
Enough small talk.Here are some waysto earn extra cash, without all of the social stuff.
What is Multi-Level Marketing?
Contrary to what some people think,multi-level marketing is not a pyramid scheme.
(Heres more information on what theFTC considers multi-level marketing.)
Multi-level marketing, sometimes referred to as internet marketing, companies typically give you several ways to earn.
it’s possible for you to also use the products yourself and essentially become your own customer.
With each level that comes in underneath you, you earn a higher percentage of the sales profit.
How long would it take to recoup that investment?
Surprisingly, money isnt the only reason people become involved with multi-level marketing businesses.
The Argument Against Multi-level Marketing
Jon M. Taylor knows firsthand how multi-level marketing works.
Taylor, an industry expert who runs the websiteMLM-theTruth.com, says multi-level marketing is designed so profits flow up.
But there are other, non-financial reasons to avoid multi-level marketing programs, he says.
One is the toll they can take on personal relationships.
The Bottom Line
If youre a consideringsigning up for a multi-level marketing program, ask questions.
Find out about the product and get the companys refund policy in writing.
The FTC providesguidanceon how to steer clear of pyramid schemes and fraudulent businesses.
Teresa Bitler is a freelance writer who writes about personal finance, investing and travel.
She lives in the Phoenix area with her husband and two children.
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…