You Know It's a Home Business Scam if..Author: Ken Seavert
Some people think that it is hard to spot a scam, but what if I told you it was as easy as asking the right questions?
Well, believe it or not it is that easy. In fact I'll show you one of those questions, and why you must ask it.
When you first join your company your upline will, well should, find out what you are looking for and layout a blueprint for how to get to your goal. At the start you will most likely be encouraged to personally use the product or service for several legitimate reasons.
However there is something you need to understand called front end loading.
Illegitimate home businesses will often require new distributors to pay money for a ton of additional products. From certain perspectives this may seem as if it's a "not so bad" idea and I am sure a person trying to scam you may have lots of logic and reason for buying so many products. for instance "you are going to need plenty of products because you'll be using so many" or something more subtle such as "it's part of business" or "it's only if you're serious...".
To me that isn't good but that's a separate issue. So why is front end loading bad?
#1 Illegitimate home businesses will use front end loading to disguise their faults or put more simply there is a large group collection of people and in order to keep money flowing they do not rely on the value provided by the product or service as they should but rather the massive orders placed by new reps. Product value aside, this can be a sign of a poor payment plan that depends on the money of the new distributors to pay the old distributors.
#2 These companies usually do not offer a refund or buy back policy as they should. This often is the worst when a distributor quits (which will happen in any company good or bad) and is stuck with an entire garage full of crap!
While I say "crap",remember what I said in number one above. It's just bad the distributor doesn't have a choice, and whether the product is good or bad, there should be a way to get back money for old inventory every time.
So what should you look for in legitimate home businesses?
Legitimate businesses enact what is called the 70% rule where a distributor must use at least 70% of their inventory before purchasing more.
This is critical because good policies are about more than just saying "Don't do X" they're about "How can we prevent people from taking advantage of this policy negatively". See some people if they were allowed would buy a ton of inventory even if they weren't asked to. Policies like the 70% rule protects people from front end loading on their own accord.
There shouldn't be any minimums of what you have to order or use. Scam companies often set too high standards of accomplishment to get paid. If it's not reasonable to use that amount of product both personally and for your business then you shouldn't be ordering that much.
But remember finding legitimate home businesses is still a far cry from working the best. Yes learn what makes a company legal but don't stop there, it's only the first step. Save yourself a lot time, money, and energy visit our consultation page when you can see how we've tracked the best mlm companies and brought them to you for free.
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