Have you ever received a message on social media about an AMAZING business opportunity that you wont regret?
The messages usually come from a salesperson who works for a multi-level marketing (MLM) company.
Multinational MLM corporations like Herbalife, Amway and Nu Skin have become increasingly popular in South Africa.
Example of how a pyramid scheme works. Photo credit: Pixabay.Source: UGC
They are all registered businesses with head offices based in Gauteng.
However, its important to recognise the difference between an MLM company and a fraudulent pyramid scheme.
There isnt a legitimate product being sold through these schemes.
He recently came a across a scheme that offered to double investors money in 20 days.
He explained:
Ultimately, MLM companies and pyramid schemes are not the same thing.
A key difference is that MLM companies can legally operate in South Africa.
Nevertheless, they do have strikingly similar workforce structures.
Sian had two waitressing jobs at a local restaurant and a golf club in her area.
Given Sians situation, she was easily drawn to the idea of working for an MLM company.
She was under the impression that she would be promoting products as part of a social media ambassador programme.
Afterwards, she was promptly asked to post about their products on Facebook.
She felt the process was too similar to a pyramid scheme for her liking.
Gareth Collier pointed out that the failure rate of new MLM recruits is around 95%.
This makes it easy to believe youll earn a substantial amount of money very quickly.
They sell a range of beauty, personal care and health products through their local distributors and website.
Distributors earn commission and points for all the sales that they make.
It cannot be ignored that some people have found it worthwhile to work for reputable MLM companies.
The language used in MLM social media messages is surprisingly convincing.
Recruiters who send these messages are usually friendly, forthcoming people who have extensive information about the company.
Its important to know exactly what youre getting into before its too late.
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