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Dec
22

How Do I Avoid Multi-Level Marketing Pyramid Schemes?

in Network Marketing, Renee Q & A

by Renee Wittrock

Everyone is looking for the fastest way to health, wealth and happiness. So many people are ready for a change and some of them are diving straight into direct sales. It is the fast growing industry in the world, but diver beware: Direct sales includes the dreaded multilevel marketing pyramid schemes and businesses (MLM’s).

If the company you are thinking of diving into is in good standing with the Direct Selling Association (DSA) then you are okay: Dive away. You will have a great chance of success if you do because it is estimated that 90% of all direct sales in the United States are made by the member companies of this association.what to know before diving into MLMs

And, the DSA has strict requirements for their 200 plus member companies:

“The DSA Code of Ethics speaks to both the consumer and the seller. It ensures that member companies will make no statements or promises that might mislead either consumers or prospective sales people. Pyramid schemes are illegal and companies operating pyramids are not permitted to be members of the DSA.”

If you are wondering about any multilevel marketing company, you can check them out in the Direct Selling Member Organization Search.

By the way the DSA defines MLM’s as:

“Multilevel marketing …is a type of compensation plan found in direct selling. A direct selling company that offers a multilevel compensation plan pays its representatives based on the individual’s product sales as well as that of their “downline,” which refers to a group of people that consultants bring into a company to generate sales, their recruits, and so on.”

Not so dreadful sounding now is it? Either way, MLM’s have a bad stigma about them so you’ll hear companies refer to their direct sales as Network Marketing Opportunities but most of them pay the multi- level way.

The most dreadful thing I have seen in Multi-Level Marketing businesses is the promise of big and easy money. People are not told that they will be swimming upstream in the building phase and that there will be times of drought, like any start-up business.

I believe if most people knew how hard it was and that it takes perseverance, personal development, education and time, that they would still get involved in the industry. By knowing the truth, they would dive in with a company that resonated with their life’s passion then their efforts would not seem like work.

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