The increasing demand for a more sustainable source of income during the pandemic made the MLM a choice for individuals. The industry is known to produce more wealthy people than any other industry, but secrets are lurking in some organizations posing as an MLM scheme. This article will give an overview of the secret schemes to stay away from when joining the MLM industry. The quest for wealth has lured people into schemes parading as MLM, but when given close attention, they are Ponzi schemes to deprive vulnerable individuals of their finances.
Is MLM A Scam
The MLM is not a scam. Research has shown that it has produced more billionaires than in other industries.The scheme has been seen as a scam by several people because of the negative pictures painted by some organization that claims to run multiple-level marketing model.
How Can I Identify MLM Schemes That I Should Stay Away From
It’s often difficult most time to discover the schemes to be abhorred when joining the MLM industry. Most of those schemes promise their independent distributors huge returns for minimal efforts. They focus more on getting more people to join the company than on promoting the product which is the central focus of the company.
Secrets MLM Schemes To Stay Away
This is a list of some of the schemes parading themselves as a source of MLM but secreting distorting money from its clients.
1. Primerica: Primerica at its inception in 2010 as an insurance company uses the MLM business model to attract new partners. They give a false impression of having top insurance officials with the secret agenda of having them sell insurance products order then providing the insurance security they promised.
2. Amway: Amway is a beauty, health, and homecare industry. The business model promises people a luxurious lifestyle by using their health and beauty products but surprisingly the return doesn’t align with the business model. They deprive its investors and distributors of their money with deception. In 2010, they were sued for luring vulnerable citizens for a false promising return.
3. Beachbody: Beachbody is a renowned firm in the weight loss niche. Its deceptive MLM scheme has brought about loss to women who seek measures to lose weight. Apart from this, they parade their recruits as fitness coaches without having a background in the fitness niche. The Anti-MLM coalition and Economic Secretariat revealed that most of the people they lure into the company leave within 24 months. The promising health supplements are ignored with a focus on getting recruits other than promoting the supplement.
4. LuLaRoe: LuLaRoe is focused on the women’s apparel brand and has been reported to have sacked its workers for not meeting up in the promotion of its MLM scheme. The company lured thousands of individuals to invest in its brand and have its products promoted for huge returns but failed to keep to the terms of the contract. The company was sued by one of its suppliers for damage of 49 million dollars and several other investors for fraud.
5. Neora: Neora poses as a skincare and supplements MLM company by deceiving them into a lifestyle of financial freedom. The company base its focus on having recruits other than promotion of the supplements. The promising value of health supplements was not met.
6. Herbal Life: Herbal life give false claims of its distributors and investors having financial liberation without keeping to its terms. The company was sued in 2019 for a charge of 20 million to SEC and 123 million dollars in 2021 to settle its investors.
7. Advocare: Advocare has been revealed as an illegal pyramid scheme misleading investors into parting with their money for a profit. The company presented a false profit margin of its worth to lure more recruits by giving goods worth thousands of dollars in return without following through with it.
8. Younique: Younique has secretly lured people on the quest for financial independence into making purchases in a bid to secure their financial future. The scheme is an eight-tier structure that positions those at the top of the ladder to enjoy more affluence. The company settled a lawsuit of 3.25 million in 2019 for promoting fraud.
When joining an MLM scheme pay attention to what they promote more. Most of the company show false claims and lure their clients into parting with their money without giving the promised value. They pose as health care and wellbeing industry, supplies of supplements and huge return on investment and promise financial freedom and luxurious lifestyle to its victims.
Frequently Asked Questions
Is MLM schemes a scam?
No. The MLM scheme is not a scam.
How can I identify the schemes to stay away from?
MLM schemes that focus on recruitment and not the promotion of the products. Carry out a background check on the company before signing up.