Beware of scams called Multilevel Marketing (MLMs).
Examples include Helping Hands International known as H2i, Forever Living Products, Alliance In Motion Global, Oriflame, Total Life Changes, Morinda Bioactives (Formerly Tahitian Noni), GNLD, Tianshi, Greenlife, Greenworld etc. These are some of the MLMs that abound in Nigeria. I wish to educate you on some of the pitfalls of investing in these businesses. Priceless information about modus operandi of these dubious organizations are presented below. It's a lengthy read but it will save you a financial heart attack later. Material was sourced from various research sites.

Multi-level marketing ( MLM) by definition is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing. According to the U.S. Federal Trade Commission (FTC), some MLM companies constitute illegal pyramid schemes which exploit members of the organization. Companies that use MLM models for compensation have been a frequent subject of criticism and lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price fixing of products, high initial entry costs (for marketing kit and first products), emphasis on recruitment of others over actual sales, encouraging if not requiring members to purchase and use the company's products, exploitation of personal relationships as both sales and recruiting targets, complex and exaggerated compensation schemes, the company and/or leading distributors making major money off training events and materials, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion.

Another very important terminology to know is Pyramid Scheme:
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal. Pyramid schemes have existed for at least a century in different guises. Some multilevel marketing plans have been classified as pyramid schemes. Some multi-level marketing (MLM) companies operate as pyramid schemes, and consumers often confuse legitimate multi-level marketing with pyramid schemes. According to the U.S. Federal Trade Commission legitimate MLM, unlike pyramid schemes - "have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. (NOTE THIS- You don't need to pay to join). MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits."**** Pyramid schemes however "may purport to sell a product, but they often simply use the product to hide their pyramid structure". While some people call MLMs in general "pyramid selling", others use the term to denote an illegal pyramid scheme masquerading as an MLM.
The Federal Trade Commission warns, "It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products." It states that research is your best tool and gives eight steps to follow:
1. Find—and study—the company’s track record.
2. Learn about the product.
3. Ask questions.
4. Understand any restrictions.
5. Talk to other distributors. Beware of shills.
6. Consider using a friend or adviser as a neutral sounding board, or for a gut check.
7. Take your time.
8. Think about whether this plan suits your talents and goals.
Some commentators contend that MLMs in general are nothing more than legalized pyramid schemes.

great

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justirich:
Beware of scams called Multilevel Marketing (MLMs).
Examples include Helping Hands International known as H2i, Forever Living Products, Alliance In Motion Global, Oriflame, Total Life Changes, Morinda Bioactives (Formerly Tahitian Noni), GNLD, Tianshi, Greenlife, Greenworld etc. These are some of the MLMs that abound in Nigeria. I wish to educate you on some of the pitfalls of investing in these businesses. Priceless information about modus operandi of these dubious organizations are presented below. It's a lengthy read but it will save you a financial heart attack later. Material was sourced from various research sites.

Multi-level marketing ( MLM) by definition is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing. According to the U.S. Federal Trade Commission (FTC), some MLM companies constitute illegal pyramid schemes which exploit members of the organization. Companies that use MLM models for compensation have been a frequent subject of criticism and lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price fixing of products, high initial entry costs (for marketing kit and first products), emphasis on recruitment of others over actual sales, encouraging if not requiring members to purchase and use the company's products, exploitation of personal relationships as both sales and recruiting targets, complex and exaggerated compensation schemes, the company and/or leading distributors making major money off training events and materials, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion.

Another very important terminology to know is Pyramid Scheme:
A pyramid scheme is a business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products or services. As recruiting multiplies, recruiting becomes quickly impossible, and most members are unable to profit; as such, pyramid schemes are unsustainable and often illegal. Pyramid schemes have existed for at least a century in different guises. Some multilevel marketing plans have been classified as pyramid schemes. Some multi-level marketing (MLM) companies operate as pyramid schemes, and consumers often confuse legitimate multi-level marketing with pyramid schemes. According to the U.S. Federal Trade Commission legitimate MLM, unlike pyramid schemes - "have a real product to sell. More importantly, MLM's actually sell their product to members of the general public, without requiring these consumers to pay anything extra or to join the MLM system. (NOTE THIS- You don't need to pay to join). MLM's may pay commissions to a long string of distributors, but these commission are paid for real retail sales, not for new recruits."**** Pyramid schemes however "may purport to sell a product, but they often simply use the product to hide their pyramid structure". While some people call MLMs in general "pyramid selling", others use the term to denote an illegal pyramid scheme masquerading as an MLM.
The Federal Trade Commission warns, "It’s best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products." It states that research is your best tool and gives eight steps to follow:
1. Find—and study—the company’s track record.
2. Learn about the product.
3. Ask questions.
4. Understand any restrictions.
5. Talk to other distributors. Beware of shills.
6. Consider using a friend or adviser as a neutral sounding board, or for a gut check.
7. Take your time.
8. Think about whether this plan suits your talents and goals.
Some commentators contend that MLMs in general are nothing more than legalized pyramid schemes.

Op, you are confused o!

And the painful thing is that you are inflicting other innocent minds with your deep confusion.

You started off by saying all mlm are illegal. Then at the end of your writ-of-confusion, you started telling us how to choose the best mlm.

Why are you so confused?

Op,you have a good point there. Most of these MLMs are nothing but pure scams in disguise. Once you ever pay that money to register,you'll practically have to be begging and forcing others to join. However,for good business that will pay you constant residual income,absolutely free to join and no obligation to buy thousands of their available day to day products,check my profile,or contact me.

Good job OP.
Although I think you could have laid a little more emphasis on how difficult it is to recruit new members after a while of the MLM company's existence and how only those who got in at the very beginning make something worthwhile out of it

Good job nonetheless

The 10 Big Lies of Multi-Level Marketing by Robert L. FitzPatrick:
Lie #1: MLM is a business offering better opportunities for making large sums of money than all other conventional business and professional models.
Lie #2: Network marketing is the most popular and effective new way to bring products to market. Consumers like to buy products on a one-to-one basis in the MLM model.
Lie #3: Eventually all products will be sold by MLM, a new form of marketing. Retail stores, shopping malls, catalogues and most forms of advertising will soon be rendered obsolete by MLM.
Lie #4: MLM is a new way of life that offers happiness and fulfillment. It is a means to attain all the good things in life.
Lie #5: MLM is a spiritual movement.
Lie #6: Success in MLM is easy. Friends and relatives are the natural prospects. Those who love and support you will become your lifetime customers.
Lie #7: You can do MLM in your spare time. As a business, it offers the greatest flexibility and personal freedom of time. A few hours a week can earn a significant supplemental income and may grow to a very large income making other work unnecessary.
Lie #8. MLM is a positive, supportive new business that affirms the human spirit and personal freedom.
Lie #9. MLM is the best option for owning your own business and attaining real economic independence.
Lie #10: MLM is not a pyramid scheme because products are sold.

Chai, See confusion created by the op.
What do you mean by a scam?
What do you know about MLM?
How much do you know about these companies you mentioned?
What are you even trying to say? You sound confused.
Are you trying to guilde people on choosing a better MLM opportunity or you are warning people about the activities of these companies?

Nawoa.Abi na copy and paste you did?

Is this the same MLM i am making my money from? You must be a small boi to have posted such thing online. I am MLM addict and i operate with FOREVER LIVING PRODUCTS. I have sold our products to countless numbers of people on this noble forum and i am still selling as i am talking to you. Nobody demanded money from me to start because to you can simply go to google and ask it how to register with the company without paying a dime. It is the greedy uplines that normally task people to pay for registration.

Abegyy......check my profile and see through how i run my business. You will discover the HARD WORK and DEDICATION i have put in this programme to yield the result you will find there. Less i forget, i am a student and it doesn't disturb my academics. I cant talk much jaree...Na so people go continue to complain when you work hard and make your cool money.....



Ignorance is no excuse boi.

well there is no cause for argument. MLM simply stand for new method of enslavement where companies take advantage of poverty especially in Nigeria to enslave people to be selling for them.only few people at top enjoy and many people under surfer.