Why Have MLMs Been Given an Unfair Reputation?

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One of the biggest reasons MLM has an unfair reputation is because a few unscrupulous business leaders have committed fraud under the guise of MLM, leading thousands of people astray. Today, the average MLM company faces an uphill battle attempting to overcome the stereotypes that have been put in place because of the actions of a few. Unfortunately, this has caused many potential investors to steer away from MLM companies and miss out on profitable opportunities. Companies like ZynTravel are working to overcome the stereotypes and show the genuine side of MLM by helping their distributors cash in through their honest, straightforward compensation plan.

The biggest issue that has arisen with MLM companies is pyramid schemes. A pyramid scheme is one that attempts to recruit people without selling any type of product. This type of scheme is against the law and is greatly frowned upon by any legitimate MLM companies. Unfortunately, many reputable MLM companies are being accused of being pyramid schemes even when their business model is legal. It is important recruits realize how to spot a scheme so they can avoid them.

Signs an MLM Company Is Really a Pyramid Scheme:

  • The company offers a financial reward simply for recruiting people.
  • The company focuses more on the recruitment of people rather than selling the product.
  • A pyramid scheme will typically require an expensive startup price which includes training and a sales kit.
  • The products being sold have no real value.

Recruits should be weary of any high­pressured sales pitches where they are forced to make an immediate decision. Any respectable MLM company should encourage a potential recruit to listen to the information and then take time to consider it carefully before making a final decision. If an MLM company seems to be too pushy, they may be trying to get a person to recruit before they find out it is a scheme.

Although there have been a few bad eggs in the MLM mix over the last 65 years, the vast majority of MLM companies are working to change the reputation that has unfairly marred the industry for many years. Companies like ZynTravel are leading the way because of their transparent compensation plans and easy signups that allow recruits to know exactly what they are getting into before they make the decision to join. Any company that is not forthright in the information they provide is not worth a second look.