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  Index –› Business & Services –› Network MLM
   
 

Multi Level Marketing Companies and Unintentional Fraud

   
Author: Lance Winslow
 

Have you ever been introduced to a multi-level marketing business? This is when the sales person or recruiter draws circles and says if you get so many people to do this and they get so many people to participate then you get a percentage all these people? Sounds fairly enticing and a lot of people believe that they can do that and therefore get involved.

Next thing you know they are out selling others to sign up and those others are signing people up and so on. Of course when you make a copy of a copy too many times we all know what happens dont we? The copy becomes illegible from the original. Thus the people in the down line begin to say things in order to sign up new recruits which simply are not so. Thus they misrepresent facts related to potential earnings or make claims, which seem innocent enough but are only remotely based in truth.

Sure these folks are trying to earn a living, but that does not make the fraud any less devastating for the duped newbie signing up. Part of the problem is that we over regulate one sector and under regulate another. If a franchise did this they would be sued or fined. If a financial planner did this they would be fined triple and lose their license forever.

Sometimes I think it would just be better to; "let the buyer beware" and educate people. Now then a smart person like your self might see thru these bogus sales pitches or spot erroneous information or misrepresentation, but a less intelligent person gets had or taken. Someone is going to rip off all the dumb people sometime, as eventually they are going to fall for some scheme; you cannot prevent it all or make laws which inhibit forward progression of the economy and slow commerce to save the stupidest people amongst us. We need to do something about these unintentional misrepresentations and fraud that are occurring out there in the MLM field, without hurting all the small business people who have chosen to work from home in this way. Think on this in 2006.

 
 
 

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