Network Marketing MLM business has taken some beating reputation wise in the last few years. But the good news is that the industry is coming back. There are lot of network marketer out there that are doing this business all in the wrong way. Just like any business, there some Network marketing scams out there. But by far, majority of the Mlm businesses out there are not scam. They are nothing but a medium for you and me to better our life. So the question you ought to be asking is why many are calling network marketing scam and how you can recognize network marketing scam when you see one.
The first sign you should check for before you partner with any Mlm company is to see if they have any product that they are marketing. This is what the real Network Marketing is all about. It should be about marketing at least one product or service. So in case you are wondering how to spot Network marketing scam, they are the MLM companies promising to make you rich by just the transfer of money from hands to hands. Run from these when you see them.
It is helpful to check the compensation plan of any MLM Company before you join them. Some companies have products that they are marketing. However, their compensation plan is gear towards rewarding just recruiting. These Network Marketing companies are not scam however they are playing with fire. Because it is just a matter of time before the federal government come and crack down on them. So you have to be just extra careful with this type of company.
Let us be very clear though. 99% of the people online saying one company is a scam are just formal distributors of that particular company who did not make lot of money with the company for many reasons. You should understand that the internet is a free place where anyone can go and post anything on it. These are disgruntled representatives. The major reason why many fail is because they do not know how to build a huge organization.
One common reason why the formal MLM distributors call Network Marketing scam is due to the lack of the skill sets necessary to generate mlm leads. Your leads are the biggest asset in this business because MLM is a people’s business. We as human being are naturally skeptical. You need to present your business to lot of people. The idea that you can become a millionaire with just family and friends is a joke. You will need to generate lot of leads everyday to really become successful in this industry. In this internet age, this is relatively easy and cheap also.