London, UK (PRWEB) November 08, 2012
One of the biggest MLM scandals of the year has seen several boardroom members of the Destiny Group arrested and more on the run from the authorities as reported in The Financial Express of Bangladesh earlier this week. It has been estimated that some 4 million people were taken in by the Destiny Group scam dating back to 2000. Billions of Taka were fraudulently obtained from investors with most of the proceeds believed to have been smuggled out of the country leaving investors with no hope of getting their money back.
While the actions of the top members of the Destiny Group are an extreme example of the dangers of MLM there are many similar cases taking place all over the world albeit on a much smaller scale. So is it possible to spot a genuine MLM company from one that is little more than a pyramid selling scheme? It is with a little care and Second Upline’s guide about what to watch out for:
- Stockpiling. The less reputable MLM companies require their representatives to purchase large amounts of stock before they can join the network or earn commissions.
- Over-stated claims. When trying to recruit new members many IRs (independent representatives) will make misleading or false claims about the amount of money it is possible to make.
- Over-priced sales tools. One common tactic is to require members to purchase training material such as books and DVDs which are often over-priced and contain little if any valuable information.
- Pay to join. New members are required to pay steep fees just to join the network encouraging upstream IRs to focus on recruiting people rather than actually selling.
- Biased compensation plans. This is the single best indicator of the legitimacy of a MLM or network marketing company. Less than reputable companies will have the people at the top making just as much commission as the person making the sale.
The automated webinar system offered by Second Upline is a new way for marketers of all levels to approach the business. Aimed at both veterans and newcomers to the field of network marketing and MLM it is a unique system pioneered by Russell Brunson. Full training is provided and Russell and his team help to generate leads, create webinars and manage the upline system. Visitors to the website can watch an in-depth video about the power of automated webinars and how they can help to make any home based business a success.
http://secondupline.com/ is the latest venture from internet and network marketing supremo Russell Brunson. Believe it or not Russell started his marketing career selling a guide on how to make potato guns. Since then he has created Dotcom Secrets and SuccessETC which promotes a number of brands and companies including Body Evolution, LifeGuard HQ and ClickFusion.