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ADRIAN JONES. £ARN AT HOME UK NETWORK MARKETING

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  • Adrian Jones

Fred Told Me, So It Must Be Right. Right?

Updated: Nov 16

MLM MYTH-BUSTING



Okay, so let’s demolish some walls.

“I know it’s a scam because Fred down the pub told me”.

Or, “my friend Sarah who knows everything because she read it on Facebook told me”.

Let’s jump straight in


WHAT IS MLM?

For over 130 years, before Women had the vote, Aircraft flight had not happened and Marconi had not sent the transatlantic radio signal, MLM has been around.

Multi-level Marketing refers to a Worldwide marketing method mainly employed by Direct-Selling Companies. You, as a Rep:

  • Are helped and supported, by the Company and the person who recruited you, to sell products in return for commission payments.

  • The only cost to you is usually a minimum investment fee to buy a starter pack, currently £10* with Avon, £28* with Younique, £42* with Herbal Life, and £22* with Betterware, from the Company in return for the items to start your business, some require this paid upfront or is deferred. (No payment should be made by you to the person who recruits you. If you are asked to pay money directly to a recruiter, walk away, I would personally run, This would be classed as a pyramid scam!!)

*Costs as of 10/8/2021

  • You can if you want to, but are not required to, also receive payments for recruiting new reps, distributors, etc, to assist in the selling of products and/or services of the company.

  • It is also called network marketing or referral marketing, whereby the company through recruiters explains its own payment plan and benefits to you so that you can make a decision whether to, or not, join the Company.

"Direct Selling is the UK's largest provider of part-time earning opportunities. It is a flexible option for over 400,000 people in the UK, allowing them to run their own business around existing commitments, putting in the hours they choose." (Direct Selling Association.org 2021)


WHAT IS A PYRAMID SCAM

A pyramid scheme is a fraudulent business practice that involves the building of a network, or “pyramid,” of investors who pay money into the scheme with the hope of earning a high return on their money. A pyramid scheme has a single person at the top of the pyramid who has underneath him an expanding base of investors. An investor pays to take part in the scheme who then recruits other investors to join the pyramid, who subsequently pay money to the investor who recruited them. This ensures the people at the top enjoy a lavish lifestyle while those at the bottom don’t. In MLM, people can earn more or similar to people higher up the network.

If you think about it, in an everyday business you have the boss, his management team, supervisors and the shop floor people. The question is in this scenario who earns the most and who earns the least? And would a shop floor person ever earn more than the management or the boss?

Pyramid schemes rarely have an actual product and rely solely on the vulnerability or gullibility of recruits who invest money into the scheme. Pyramid schemes are considered a form of business fraud in most countries and are therefore illegal. It is Illegal in the UK and the USA, to name two Countries. MLM is not.

Adrian Jones

www.earnathomeuk.com

info@earnathomeuk.co.uk



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