MLM Scams with Its Deceptions
MLM business is growing and there are many MLM scams today. There is withdrawal member activity everywhere. As a result, this MLM business is the wave of future business. This business model is gaining momentum, more and more accepted and legally recognize. It is heralded by the initiators. MLM will replace most of the models of marketing and other types of sales. Many people believe that the success can be obtained by anyone who faithfully follows this system and applying this method. In the end, everyone will be MLM distributor.
I manage to gather information, facts, and inputs indicating that the MLM business is basically a free market lies. This is analogous to mention the purchase of lottery tickets as a business and win a prize as lifetime income for anyone. The validity of the MLM scams industry claims about potential earnings of the distributor. Awesome explanation about the network business model and its recognition of mastery in the distribution of the product are exactly like the validity of UFO sightings. Legality MLM system is based solely on a decision in 1979 to one company. Legally implementation guidelines set out in that decision continually ignored by the MLM industry. The lack of rules and monitoring by the authorities are also the reason why the industry continues to survive despite several demands by the general state of attorney and Federal Trade Commission. MLM economic achievement in MLM scams has always been characterized by high failure rates and financial losses for millions of people.
MLM structure with the position of the endless chain of sales is achieved by selling or buying goods, mathematically untenable. Also, MLM system allows recruiting distributors in unlimited quantities in a marketing department is clearly unstable. MLM core business called direct sales is contrary to the trend in communications technology that is cost-effective distribution (low cost). It is also interesting for the part of consumers to buy. Activity in retail sales in MLM scams is in fact a mask from its core business called the owners rake in money (investors) into pyramid organizations that promise growth in multiplied earnings.
As in all pyramid schemes, the income of the distributors at the top and the company sponsors come from the entry of the investor (investor money) and have continuously at lower levels. If seen roughly in terms of corporate profits and the wealth of the elite group at the top, the MLM model would seem as there would be no death for. It is exactly like a pyramid program before finally uprooted or prosecuted by the authorities. Constituents or the main pillar of the MLM scams industry is not a consumer of public money but growers hope.
The market money grows in times of economic changes, globalization, and lay off employees. The promise of financial gain is easy, and the relation between wealth with ultimate happiness also plays a major role in these market conditions. Therefore, MLM marketing direction is intended primarily to candidates (prospects) distributor, rather than in the form of promotional products to the buyers. MLM scams products are usually DLD services, vitamins, or skin cream, but the investment program for the distributors is misleadingly portrayed with high incomes, the use of a few, small capital, and success in a short time.
Sale of the product is not at all an antidote for MLM to escape from laws against pyramid scheme. It also does not response accusations of unfair trade practices as stated in the laws of state and federal. MLM is a legitimate business if it meets certain preconditions set forth by the FTC (Federal Trade Commission) and the general state attorney. Many MLMs violate these guidelines and operate only because they have not been prosecuted. Court rulings recently determine the legality of MLM. At least 70% of the products sold by the MLM must be purchased by non-distributors. This provision would place most MLM companies outside the law. The executor of the biggest MLM acknowledges only purchase 18% of its products to non-distributors.