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What About Ponzi Schemes?
Ponzi Schemes masquerade as MLM companies, but instead of selling products, they focus solely on selling memberships. The more people there are in the organization, the more money it has.
However, the higher the number of affiliates in a Ponzi scheme, the more it needs to pay out in commissions to its members. This unsustainable business model usually ends up with the founder (if the company even acknowledges him or her) leaving a person-shaped hole in the wall. As for the money you invested in the beginning, you’re not going to see a penny of it back.
Should I Join an MLM?
Well, that’s entirely up to you, but we will tell you this. The millionaires you see on TV do not get involved in these businesses.
There are tons of legitimate MLMs out there, but they’re usually so old that it’s nearly impossible for new members to reach executive status. Statistically, more than 80% of people who give MLM a try usually end up quitting within the first year.
That’s not to say you can’t make MLMs work for you. If you’re fortunate enough to create a team of go-getter sellers and recruiters, you might end up earning a healthy commission every month. That said, you’ll have to do a lot of scouting and recruiting to create such a team.
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