How to Spot a Pyramid Scam
February 2, 2007 | By admin | No Comments »
Here is an article that will help a newbie determine whether the network marketing company he is joining will turn out to be a scam or not.
http://www.articlemaniac.com/article/47775/how-to-spot-network-marketing-scams.html
It is very important to note that although certain companies may offer products for a high inventory loading fee, the business model must be carefully examined because there are products with very low repeat sales or it is very hard to retail those kind of products. That means, people will recruit others and ask them to load more and more inventory.
(You don’t want your MLM products to wind up like this…)
What happens in the end is that when people start seeing so many products they have bought in their house, they are very tempted to sell away those products at a very low cost. This will destroy the actual value of the product and hence, destroy its market eventually.
Also important to note that if a company marks up a product too much, it is also a very unhealthy business.
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