Why you should not join multi-level marketing?

While they may masquerade as legitimate businesses that could make you rich, MLMs thrive on misinformation and the naivety of their consultants. Not only do you end up losing money in the long run, but you’ll probably end up annoying every family member you have too.

How much do MLM consultants make?

Only one-quarter of people who get involved in multilevel marketing manage to make money, as outlined in MLM business statistics. Of this 25\%, 14\% make less than $5,000, 6\% make between $5,000 and $9,999, 3\% make between $10,000 and $24,000, 3\% make $25,000 or above, and only 0.05\% make $100,000 or above.

What are two ways that legitimate multilevel marketing MLM companies make money?

What Are MLMs and How Do They Work?

• by selling the MLM’s products yourself to “retail” customers who are not involved in the MLM.
• by recruiting new distributors and earning commissions based on what they buy and their sales to retail customers.

Who regulates multi level marketing companies?

On the federal level, regulation has largely come through actions initiated by the Federal Trade Commission (FTC), Securities and Exchange Commission (SEC) and U.S. Postal Service. The seminal FTC MLM decisions are In re Koscot Interplanetary, Inc., 86 F.T.C. 1106 (1975), and In re Amway Corp., 93 F.T.C. 618 (1979).

Why Multi Level Marketing is good?

Multilevel Marketing Can Be a Good Thing It offers the opportunity to become involved in a system for distributing products to consumers. Unlike the person starting a business from scratch, the MLM participant has the support of a direct selling company that supplies the products and sometimes offers training as well.

What is an income disclosure statement?

An Income Disclosure Statement provides solid figures about the real earnings of the average distributor. Doing this dispels any argument or claim that the company is misrepresenting the opportunity or typical earnings gained from it.