Sunday, July 12, 2009

Work from home rip-offs

I am so sick of home party-based businesses. From makeup to candles to cleaning products to jewelry and snack mixes. Don't invite me. My moms' groups has several of these "entrepreneurs" and my email inbox is filled with party invites. "No pressure," they say. "Just come and hang out and sample fabulous products."

I don't believe it for a second. Of course they want you to buy. They want you to purchase a lot so they can make money. And then they want you to host a party. Or maybe become a salesperson as well on their team so they can make money off any money you make.

My first experience with these so-called Multi-level Marketing businesses was when a Mary Kay saleswoman accosted me at the mall shortly after I graduated from college. She lured me into taking part in a "facial" and buying a bunch of products I didn't need. Then she constantly called and checked in to see what I needed. Eventually she told me Ishould start my own Mary Kay business. No thank you.

I honestly feel bad for most of the women who get sucked into these so-called opportunities. I assume there are some fairly legitimate MLMs, but most seem like pyramid scams designed to make money for the very few on the backs of stay-at-home mothers trying to earn some extra cash.

Many of these women pay upfront for their product and then try to sell it by convincing friends and family members to host parties. They might earn a small profit initially, but soon they have used up their contacts and have a surplus of products they bought with their own money. They don't realize that they are the main customers. They are the ones buying up the product and usually they are not the ones making any money. They are encouraged to recruit new sellers to join their team and increase their own profits, but this cuts in to their own client base and alienates acquaintances. I know I steer clear of the conversation when I hear someone starting to hawk their products to solve all your ills.

You have to be suspicious of a company that doesn't just sell its products directly but instead depends on a pyramid of mostly untrained salespeople. There are better ways to make money and ways that won't cost you in the long run.

--MM

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