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The following article was published in our article directory on June 20, 2017.
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4 Red Flags Watch For To Avoid Being Scammed When Dealing With Direct Selling Companies

Article Category: Advice

Author Name: Kat Smith

The economy is still in recovery mode since the great recession of 2008 and people have been considering alternative income generating opportunities. Women particularly have gotten on the forefront when it comes to seeking alternative business opportunities. Among one of the most prominent of these opportunities is a home-based business known as multi-level- marketing (MLM) or direct selling.

If you are a woman, you have probably read about multi-level-marketing or direct selling and it is highly likely that you have not heard many positive aspects of it. The truth is that the direct selling industry has had shady businesses and promoters that have swindled quite a few people a bunch of money. However, it does not mean that it is not a sound business model.

The multi-level-marketing business model has been around for many decades, which is testament to the fact that it is indeed a genuine income generating business. It is actually a $30 billion a year business that many women from throughout the country and the world at large are a part of. The industry is clearly very promising if you really want to be a part of it but you must keep an eye out for the following warnings to avoid being scammed.

1. Concentrate on Recruitment In lieu of Selling

If you join a multi-level-marketing company and discover that the focus is on recruiting other individuals you should turn the other way. Legitimate multi-level-marketing companies are required by law to sell tangible products or goods. Smart con artists have discovered a way around this by offering low quality products and this is something you must realize.

A legitimate direct selling opportunity won't emphasize recruitment over selling. If it is a legitimate business, selling should be the primary activity and not recruitment. You can tell whether the company offers real, quality products by checking reviews online. If you find overabundant complaints of worthless information and products, you should simply find a different opportunity.

2. Complex Commission Structures

Pyramid schemes impersonating direct selling opportunities love using complex commission structures to make them appear legitimate. If the cash you make is dependent on the quantity of people you have recruited into your team or downline, you should reconsider that multi level marketing opportunity. The focus should always be on the profit margins for products and effective ways to sell larger volumes of products.

A legitimate multi-level-marketing company should have a simple commission structure. At the heart of any legitimate business transaction is a very simple premise: you buy/produce/provide products or services at a particular cost and sell them at a monetary gain. This is no different for multi-level-marketing companies. Avoid direct selling companies with overly complex commission structures.

3. The 'Anyone Can Do It' Claim

The reason and extent to which local business thrive depends on the owner's passion and business skills. A clear sign that the MLM is more interested in your money as opposed to your success is when it keeps emphasizing how easy it is to enjoy success in the MLM industry. The 'anyone can do it' claim is a clear sign that the program is simply a scam.

A legitimate MLM will focus more on the discipline, diligence, and effort required to remain successful with the direct selling business model. The MLM should make things clear that while it is possible to become successful, it does require taking calculated risk, dedication, and effort. A program that promises no risk and no work to your investment is simply a scam.

4. Unfounded and Outrageous Product Claims

You will sometimes find home based business companies making outrageous and unfounded claims about their products. This is typical in the health and wellness industry where MLMs and their representatives claim that their products work miracles or cure ailments. Outrageous and unfounded claims should always be a dead giveaway in any industry.

A legitimate direct selling opportunity is established on successful products. If you find that the company you are considering joining promotes products with unfounded and outrageous claims that are simply too good to be true, be very cautious. The last thing you would want is having your name and reputation tied to a product which is the focus of litigation or a faulty product.

The Bottom Line

It is your responsibility to stay vigilant against the efforts of con artists. Economic downturns provide ideal hunting grounds for scam artists to prey upon average people looking to supplement their incomes. Women find themselves in desperate need for extra income to support their families, and the fraudsters arrive with opportunities that are hard to deny.

If you would like to check out direct selling, you should give Agnes & Dora a chance. It is an up-and-coming direct selling opportunity in the women's fashion niche. You can join this business by signing up through an independent agent at gemsbykat.com or you can first check out whether the opportunity could be something you would have an interest in by buying sample products. Visit gemsbykat.com to learn more.

Keywords: direct sales scams, agnes and dora

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