Are Fraud companies affecting the business of right MLM companies?

fraud-compnies-affecting-business

If you someone sees you at a Bar along with your friend, they will straight away judge you that you are an alcoholic. Though it could be your friend you asked you to drop him at the bar, but for the people it is impossible to see with hear and mind and they can only perceive what their eyes see.

As per the revised list of 2018, there are 537 fraud companies who are in MLM business. These companies are involved in money circulation schemes and collecting money from innocent people with fake promises to double it. They have misleading information and unviable plans.


But there are like counterfeit currencies and cannot reduce the value of genuine currency. There are many MLM companies offering legitimate membership and income to the members and empowering them financially. Members are happily working for these companies and seeing their growth, they are also encouraging their friends to join along with them.

Fraud companies created a scary weather and made the legal MLM businesses incur a bad reputation, due to which aspiring candidates are unable to decide whether to join the network marketing or not. But it will be in our hands to uncover the truth. We know their authenticity by seeing the fruit they bear. If a frog promised to make us fly along with it, being an individual with commonsense we don’t believe in it, since the frog itself has no wings.

Fake MLM companies are similar to this, they have nothing to sell but fake promises. They work on alluring words and money schemes which are called Ponzi schemes. All these fraud company scheme aim at joining the new member by charging the fee. Members are made to believe that, the greater number of people they join the more profit they get. But remember, there is no product selling involved in it.

Whereas the genuine MLM business involves product selling and joining the new members to sell their products. There may or may not be a joining fee. The profits will be made by the difference the member buy the product from the company and sell to the customer, which is called marginal profit or revenue.

Though it is completely legal in India to run and to involve in MLM business, we need to be careful on what company to join. Just like in the above example, any company making illogical promises and compelling the members to join new members for money will be for sure a fraud frog.

But let us not forget that the network marketing is a blooming business and we can expect a decent income by joining them. there are many people who are completely depended upon the MLM business and settled pretty well. Their success lies in their selection of good choice and the legal company.

So, it is true that the fraud MLM companies affecting the business of right MLM companies, but to completely eradicate this problem, the solution is to check the legality of the company and about their membership guidelines.

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