There are two obvious benefits of being self-employed: first, you have a pleasantly flexible schedule that can be arranged the way you like; second, there’s no manager who monitors and assesses your performance. However, building up a successful and profitable business from scratch is not that easy. For this reason, many people choose to join businesses that allow individuals much work independence — multi-level marketing (MLM) companies.
In addition to the benefits mentioned above, MLM and direct selling schemes promise big financial returns to their individual marketers. For the employees who seek job independence, this is too good an opportunity to miss. While it can be a realistic source of sufficient income, the chances are that the company turns to be a scam. Let`s explore the difference between legitimate and illegitimate work from home.
Recruiting or Sales. The entrepreneurs engaged in social selling generate their income from distributing products themselves and from the sales of people they’ve attracted to the company. Legal business opportunities focus on selling, whereas scams stress recruiting. This is the difference. Pyramid schemes will encourage its members to bring in new team members, which can eventually cause overcrowding and the company’s failure.
Initial costs. Legal business opportunities don’t ask to invest a lot to get started. Remember: they earn profit via distributors that sell, not with distributors that join.
Asking for an investment to start is typical of pyramid schemes.
That’s why this is so costly to affiliate with such companies. Also, they will put pressure on you to pay more: for additional training, for basic office supplies and a great deal of their products, all at once.