By Cheval John
Photo courtesy of Investopedia
The “Great Recession” of 2008 put a dent in the U.S. economy that took a while to recover.
Many were laid off from their positions at places where they believed they would work at until retirement.
After the initial shock, they went into job hunting mode, looking for that same position at a different company, hoping to feed their families and reclaim the American dream.
Thankfully, people are now starting to find jobs whether in their fields or in a place unrelated to their expertise.
According to the U.S. Bureau of Labor Statistics, the unemployment rate has dropped to 5.6 % in December of last year.
Prior to the month, unemployment was at 5.8 %.
Though that is good news, many others are still trying to find the job of their dreams.
Unfortunately, the desperation of these folks allows many multi-level companies to prey on them because they see an opportunity to take advantage to profit for themselves.
You might wonder what is multi-level marketing?
According to Investopedia, multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits sales.
So for a person who is new to a multi-level company, the only way for them to make money is to meet a sales quota so that they can gain a commission.
They will have to pay for a fee to receive some products or training first before they go out and gain new customers for their products.
People who continue to engage with multi-level companies runs the risk of losing everything because they were at the bottom of the pyramid in the multi-level marketing company.
That is why they will go out and make as many sales as possible so that they will not be caught in that predicament.
An example that will hopefully make you think twice of joining a multi-level company is the Bernie Madoff scandal.
Mr. Madoff ran a pyramid scheme for decades and many people invested in his company hoping to make a return on their investment.
However, his scheme fell apart thanks to the “Great Recession” and as a result, people lost their investment.
In turn, Mr. Madoff was prosecuted for his crimes and is now spending the rest of his life in jail.
If you’re still not convinced, here are three more reasons why you should avoid multi-level companies:
1. You Will Be Deceiving Your Customers
These companies will normally tell their workers not to reveal who they are working for because they understand that people have their suspicions of multi-level companies.
They will try and teach you to be very deceptive when they are selling one of their products or try to recruit them into a scam.
Once you get your prospective client on board with the multi-level company and they end up failing, you will be responsible for their failures.
2. It Ruins The Lives of Families.
People will put their life savings into a multi-level marketing company hoping to make money.
What they end up doing is sacrifice time with their families working everyday trying to gain new prospective clients.
When they finally go broke after dipping into their money for products, they will end up on the street because they failed to make a sale.
As a result, their families suffer.
3. You Will Ruin Your Reputation
When you try to make a sale for a multi-level company by using deception, people will realize that you are not trustworthy and will not want to be associated with you.
They will see you as a thief and will warn their friends about you.
Even if you end up leaving the multi-level marketing company and work for a reputable company, it will be very hard for you to build trust again with your friends and their network because of your deceptive practices when you were associated with a multi-level company.
So if you are struggling to find a job, do whatever you can to avoid multi-level companies because you will avoid all the stress and pressure that is associated with a multi-level company.
Did someone try to recruit you for a multi-level company? You can leave your comments below.
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3 Reasons To Avoid Multi-Level Companies
By Cheval John
Photo courtesy of Investopedia
The “Great Recession” of 2008 put a dent in the U.S. economy that took a while to recover.
Many were laid off from their positions at places where they believed they would work at until retirement.
After the initial shock, they went into job hunting mode, looking for that same position at a different company, hoping to feed their families and reclaim the American dream.
Thankfully, people are now starting to find jobs whether in their fields or in a place unrelated to their expertise.
According to the U.S. Bureau of Labor Statistics, the unemployment rate has dropped to 5.6 % in December of last year.
Prior to the month, unemployment was at 5.8 %.
Though that is good news, many others are still trying to find the job of their dreams.
Unfortunately, the desperation of these folks allows many multi-level companies to prey on them because they see an opportunity to take advantage to profit for themselves.
You might wonder what is multi-level marketing?
According to Investopedia, multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits sales.
So for a person who is new to a multi-level company, the only way for them to make money is to meet a sales quota so that they can gain a commission.
They will have to pay for a fee to receive some products or training first before they go out and gain new customers for their products.
People who continue to engage with multi-level companies runs the risk of losing everything because they were at the bottom of the pyramid in the multi-level marketing company.
That is why they will go out and make as many sales as possible so that they will not be caught in that predicament.
An example that will hopefully make you think twice of joining a multi-level company is the Bernie Madoff scandal.
Mr. Madoff ran a pyramid scheme for decades and many people invested in his company hoping to make a return on their investment.
However, his scheme fell apart thanks to the “Great Recession” and as a result, people lost their investment.
In turn, Mr. Madoff was prosecuted for his crimes and is now spending the rest of his life in jail.
If you’re still not convinced, here are three more reasons why you should avoid multi-level companies:
1. You Will Be Deceiving Your Customers
These companies will normally tell their workers not to reveal who they are working for because they understand that people have their suspicions of multi-level companies.
They will try and teach you to be very deceptive when they are selling one of their products or try to recruit them into a scam.
Once you get your prospective client on board with the multi-level company and they end up failing, you will be responsible for their failures.
2. It Ruins The Lives of Families.
People will put their life savings into a multi-level marketing company hoping to make money.
What they end up doing is sacrifice time with their families working everyday trying to gain new prospective clients.
When they finally go broke after dipping into their money for products, they will end up on the street because they failed to make a sale.
As a result, their families suffer.
3. You Will Ruin Your Reputation
When you try to make a sale for a multi-level company by using deception, people will realize that you are not trustworthy and will not want to be associated with you.
They will see you as a thief and will warn their friends about you.
Even if you end up leaving the multi-level marketing company and work for a reputable company, it will be very hard for you to build trust again with your friends and their network because of your deceptive practices when you were associated with a multi-level company.
So if you are struggling to find a job, do whatever you can to avoid multi-level companies because you will avoid all the stress and pressure that is associated with a multi-level company.
Did someone try to recruit you for a multi-level company? You can leave your comments below.
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About Cheval John
Cheval John is the Founder and CEO of Vallano Media, LLC, a marketing agency which helps small to mid-sized businesses use social media correctly to build a loyal following and in the process become more profitable. Cheval is also the host of "What's The Word?" a podcast about finding out what inspires people to choose their respective careers and how social media impacted their lives and business. He is the author of two books including the Amazon Best-Seller, "8 Lessons Every Podcaster Needs To Learn." He has spoken at Social Media Week Lima in Ohio and at Social Media Day Houston 2017 about topics around live streaming and podcasting. Cheval has been featured in media outlets including Ebony Magazine, Social Media Today and Forbes. He was named a Houston Top 25 Social Media Power Influencer (2016 and 2017) and a Twitter Top 50 Influencer by Onalytica in 2018.