If you are now making good money from an MLM networking business, then I must congratulate you. And no, this is an insult to you. I also felt the same excitement many times in the different MLM companies that I have joined for the past 14 years. But the question here is – How sure are you that an MLM company is not a scam?
For many MLM fanatics especially here in the Philippines, a company is not a scam if they are earning profit from their investment, period. Well, that was my reason too, before. “So why I am making good money from this networking company if it is really a scam?”, you might ask. That’s a very good question, and I will answer it based on my experience.
The truth is, it is very easy to check, and you don’t need to be a college graduate to understand this. To start with, creators of scam MLM businesses are very smart. Just like other business owners, they also innovate and think of ways how to attract investors or members. To avoid you from getting bored in reading, let me enumerate my answers.
Must Read: * Top 10 Questions You Should Ask Before Joining any MLM Company
#1 To use you as a bait
The company starts by making the first few members make good money. It can be the first 100 or depending on their target. In most cases, these people are relatives or good friends of the business owner. In fact, many of them are accomplice (in Tagalog, “kasabwat”).These people are used as baits (in Tagalog, “pain”), and you are now one of them.
#2 To show proof that members are earning
And because you can now show proof that you are earning, you can now easily invite new recruits. But beware! Not all of the first members are really making good money. One can easily show bundles of cash or use a brand new car, and pretend that they really own them. Remember, they are part of the company’s “investment.”
#3 To attract you to invest more
Common sense tells us that if we are making good money out of our investments, there is a great chance that we will invest again, and most likely with a higher amount. Some MLM members are very happy once they learn that there is no amount limit of investment. But the truth is, scammers designed this so they can make more money.
#4 To reach their target time of getting their ROI
You see, investment is not only about money, it’s also about time. Any business has a target date to break-even, as well as to start getting its ROI (Return of Investment). Therefore, if you will invest more and will be able to get new recruits faster than their target time, their profit will be higher with respect to time. And yes, scammers also value time.
#5 To prove that they are not scam
Ignorant MLM company investors always use this excuse – “How can this be a scam if I am making good money?” Well, the answers are from #1 to #4 I mentioned above. But if you are really a smart investor, your question would be – “Where did the company get the money they are giving to me if they are focused more on recruitment instead of selling?”
You see, the masterminds of these scam investment companies can easily say that there were problems and that they cannot return the investments of their members. But of course, it is part of the plan. They also know where to hide in case the issue reached the media, and what to say once they are caught. And yes, they will soon be forgotten and will be back for more.
Have you also noticed that when an investment scam has been revealed in public, the names of the so-called top earners are not being reported? And because of this, they will start a new investment company and they will scam people again. And in case you join them, they will tell you they were also victims, but actually they’re not.
I would like to end by asking you some more important questions, especially if you are now making good money from your investment in networking.
1. How well do you know the owner (or owners) of the investment company and their background? How sure are you that their profiles have real information?
2. How well do you know the identity of all the top earners? Are they always available to guide the members, or you just watch their YouTube videos?
3. How well do you know the manufacturers and the market of the product they are selling? Do the manufacturers really authorized the company to sell their products?
4. How well do you know the business, in terms of their main source of income and ROI?
5. How well do you know their risk of declaring bankruptcy?
6. Last, but definitely not the least, how well do you know the person who invited you? How well do you know his or her background?
If your answers are not convincing for you, you most likely now a victim of scam. And if you still insist that it’s ok to make money because you have new recruits, ask yourself what will happen to the new recruits who have not yet earned from their investments once the company declares bankruptcy (kuno)?
The above article was contributed by a certain Marjorie from Batangas City. She admits having been scammed thrice before she finally found a legal and legitimate networking company, four years ago. We decided not to publish her surname and the name of the company, so her post would not appear as an advertisement.
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