5 signs to recognize illegal multi-level marketing

1. Mainly focus on recruitment

When you are introduced to a multi-level marketing business, you need to observe the regular activities of that business. If that business only focuses on organizing recruitment sessions without organizing sales training for distributors, you need to be careful.

For a genuine multi-level marketing business, recruitment will be meaningless and will not bring any benefits if the recruited people do not sell. Because only sales can help goods be consumed, bring revenue to the business, and from there the distributors will be paid commission.

2. When recruiting, businesses use different ways to get participants to buy or pay money.

When you are invited to join a multi-level marketing business, you should note that consuming or selling the business's goods depends on your own needs and abilities. The business must not try to make you spend money to participate.

Many illegal multi-level marketing businesses survive solely on the money that new members spend on products. The company profits from this money and also uses it to pay commissions to those who recruit them.

Such businesses will not survive if they cannot recruit more people or if the people they recruit do not buy, because they do not focus on sales and have no source of revenue from the consumption of goods.

3. Bad product

The nature of multi-level marketing is to introduce and share good quality products to sell them to consumers. Thus, if the product is not good, you have nothing to introduce and share, and therefore it will be difficult to sell products and earn commissions.

4. Not focusing on sales and product consumption

Multi-level marketing is a form of sales. Therefore, a business is called a multi-level marketing business but does not focus on selling and consuming products, you need to think about whether that business can survive in the long term or not, and what source of revenue it can survive on.

5. Promise attractive profits

Multi-level marketing is just a form of selling and distributing goods, not a form of investment, so you need to consider when listening to attractive promises of profits. You only really have income if you actually sell goods and people you introduce sell goods.

What is a trustworthy multi-level marketing business?

A genuine multi-level marketing business that properly performs sales functions must meet the following basic criteria:

- Have good products:The origin of multi-level marketing comes from a person who has a good product, that person finds a way to share about his good product, thereby selling that product to everyone so that they can use the product together. Only when there is a good product, will the multi-level marketing business have a basis to introduce to consumers, and consumers will trust to buy the product.

- Good distributor training:Distributors are the people who help businesses introduce and sell products to consumers. Therefore, to perform their sales function in the best way, multi-level marketing businesses need to thoroughly train their distributors so that they understand the products and have good sales skills.

- Focus on sales, not recruitment:Multi-level marketing activities are carried out through a system of distributors. Therefore, in parallel with sales, businesses must recruit and build a system of distributors. However, sales must be given top priority.Recruitment is also only for sales purposes.

A legitimate multi-level marketing business must survive on revenue from sales activities. When goods are sold, the business has revenue to maintain operations; at the same time, it has money to pay commissions to distributors.