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This is a business, so it has the advantages and downsides of a business.
Downside 1: In any business, there are risks. You don't have the security of a paycheck. You are paid only if you sell something. If you don't sell anything, you won't get paid for the efforts and time you put in and you will have lost the money you spent if you bought products. (But let me point out right here that you shouldn't buy anything just because you can make money with it. Buy products that you would buy, even if there was no business opportunity associated with them)
Advantage 1: On the other hand, you can earn a lot more than you will ever earn with a regular job.
Downside 2: It is not a get-rich quick kind of thing. It may take some time before your business is well-established and you start making money. Especially, in multilevel companies, it will take quite some time to build your downlines. It will take a lot of people in them to make you a decent income.
Many multi-level companies say you just need to recruit 3 or 5 people who will in turn recruit 3 or 5 and so on and you will make a lot of money that way. It looks so easy, but wait till you try to get people to join. If you are lucky to know people who have an interest in the kind of products the company sells, you may be able to find your 3 or 5 referrees easily. But you may have to tell 50 people, even 100 people to find 5. And then your 5 will have trouble finding their 5.
Advantage 2: Yet, you will probably make money quicker than if you were to start your own business with your own products. It is also a lot less expensive than buying a franchise.
Downside 3: Statistics show that only 5% of people are good at closing sales. You may not be. And even if you are very good at it, the people you refer may no be, so you won't be able to build a downline fast. You will have to help them either by finding people for them or by teaching them how to do it. That's the idea behind multi-level companies.
Advantage 3: To deal with this, many Internet companies have marketing systems in place to help you recruit people. They have websites already made where you can refer people. They often have follow-up e-mails already written for you. They will also give you marketing tips and trainings. In multi-level companies, your sponsor will be there to help you and support you.
Downside 4: You need to sample the products you intend to promote. You can't really promote something if you don't know what it is, how it works and if it's good or not. If you don't like it yourself, you'll have a hard time selling it to others. That means you have to try out different products and that costs money. You may have to try out many things you won't like before you find things that are worth promoting.
You should make a research first to see if the company really exists and is reputable. You can take a chance trying out products from a new company, but it is at your own risks. Buying from an individual online is a huge risk.
Don't hesitate to send products back if you don't like them. But let me warn you that you may have trouble getting refunds from some companies, even if they say they will give refunds. So it is best to take an insurance that can track and prove if your package was delivered back to the company.
Advantage 4: It is because of this problem that home businesses work. If you know or can find someone that you can trust who has already tried out the products and recommends them, you can save yourself a lot of trouble. And you will also save others a lot of trouble by recommending products you have tried. But to be successful long-term, you have to recommend only good products. People will not trust you for long if you fool them just to make money.
Downside 5: The people who join at the top in a pyramidal structure will nearly always make some money and the more expensive the program, the more money they can make. But after a while it gets harder and harder to recruit, so the people at the bottom don't make money, they only get the products. And if the products are not worth the money they cost, then they all cancel and the ones above them don't make money and cancel too.
And the owners know they made all the money they could make, so they close the company and start something new. Most multi-level companies don't last more than 2 years. The only ones that survive are the ones that have good products. |
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