Network marketers may also find a degree in marketing or business administration very useful. A degree program in marketing helps students understand the consumer market and the factors that influence consumer-purchasing decisions. A degree in business administration prepares students to plan and direct the everyday operations of small businesses and large corporations.
Product Overview: The most unusual thing about 5LINX is the services that are on sale. The company’s marketing suggests that they have Home, Wellness and Health Products. Yet, almost everything they’re promoting is a type of service. This includes various discount programs, as well as options like a Residential Energy Program and TeeVee On-Demand Television.
Let’s put it this way, the early version of “Scentsy”’ is not as virtually hot or trendy, but they are however staying significant. If you like to have parities or play host to others, you’re better equipped to handle this business “opportunity” than others, because that’s what this game is all about. While you throw these parties, you also have to encourage your guests to whip out their cash and credit cards to buy, buy, buy. Buy what? Candles…Luckily, there are better opportunities to make extra cash these days.
MLM and direct selling programs also offer very low barriers into entrepreneurship, often providing training, support, and ample encouragement along the way. As retirees begin to realize they need activities that keep them busy, relevant, in good health, and connected to others, the time, energy and cost to participate in these kinds of companies make them very appealing to large segments of the population caught up in these dynamics.
But MLMs can get away with this because of the second big difference between a traditional franchise and an MLM “franchise”: In a traditional franchise, the end customer is the consumer, whereas again, the primary way you make money in an MLM is by recruiting other sales people and making commissions off the product they’re required to purchase from the parent company
Jim is approached by a friend who is already a distributor for Company A to become a distributor as well. Jim’s friend tells him it’s an “amazing business opportunity” and that he’s only telling Jim about this because he’s the kind of entrepreneurial guy who could succeed with it. The friend shares how other distributors have been able to make enough money selling shakes that they’ve paid off student debt and bought a second car. He says very little about the product itself except that it’s fantastic and practically sells itself.
Dr. Brezinski’s point is well taken and easy to see practiced by popular network marketing companies. Many MLM and NM companies tout a three-to-five year plan to attain freedom and wealth, yet many of the people running company meetings have been in the business for five or ten years and still haven’t left their full-time job or landed on easy street. “As it turns out,” Dr. Brezinski notes, “when other human needs are being met, the members and consultants don’t focus solely on the financial aspects.”
In the earlier 2000’s everyone in the network marketing industry new about ACN. Accelerate time and land in 2017, the telecommunication strategy company has seen better days and has continued to decline over the last 5 years. However, with $800+ million in yearly revenue still coming in, it’s not bad at all. You can still call them a “has been” company and they have ultimately met their demise by a failing to update themselves.
Pyramid structure is said to exist when you get paid to get a new recruit and there is no involvement of any product. It’s an ill-practice which makes a person earn money by taking advantage of his friends and family. Companies having a pyramid structure model tend to deceive people while making them believe that they’ll earn in future (which they do by deceiving more people). For e.g. a person will be asked to pay $100 to be a part of the company with a promise that he’ll get 25% of every new recruit’s admission fees who he refers. This is a money-making strategy of the company where the participants are at a loss.
Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.
If you insist on trying one of these MLM offers, the least you can do is look for proper business registration with BBB, toll free number, and proper address (no Post Office box). Also, you will need lots of family and friends to make it work. As a final step, check the MLM materials for one or more of these "red flags" that are associated with the worst of the offerings: