Investor Alert: beware Of Pyramid Schemes Posing As Multi-level Marketing Programs

Many people, from all walks of life have managed to build full time incomes online with it. However, what’s the real truth behind it, can the average person really build a profitable home based business with MLM? These are all great questions that I will be tackling head on and answering in this article so make sure you keep reading. We all love the idea of being able to work from home, relaxing on the sofa while earning cash with nothing but a PC and internet connection. The flexibility and freedom attached to it is something that some people can only dream of having. Thankfully, the birth of multi level marketing is something that’s made the dream far more reachable for the average Joe. It’s a way in which one can start their own home business without having to risk and put their life savings on the line due to the typically low start up costs involved with most companies. I’m sure you have already heard of some MLM giants such as Amway, Avon, Kleeneze and Herbalife. Each of these companies have their own niche and set of product lines which stretch from cleaning materials to beauty treatments. However, not only do they 3 Next, You Will Want To Advertise Your Multi Level Marketing Opportunities Within The Correct Marketplace. have a vast range of products but they also have an income earning side to the business as do all multi level marketing companies. You have the option to either become a customer only or what’s known as a distributor or also referred to as a reseller. The organisation will then provide you with all the tools need to get your new business off the ground. By promoting and advertising the products and or services that they offer, you can earn a commission percentage of the sale price.
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Home – Network: Breakdown Of The MLM Multi Level Marketing Industry

In an MLM program, you typically get paid for products or services that you and the distributors in your “downline” (i.e., participants you recruit and their recruits) sell to others. However, some MLM programs are actually pyramid schemes — a type of fraud in which participants profit almost exclusively through recruiting other people to participate in the program. Pyramid schemes masquerading as MLM programs often violate the federal securities laws, such as laws prohibiting fraud and requiring the registration of securities offerings and broker-dealers. In a pyramid scheme, money from new participants is used to pay recruiting commissions (that may take any form, including the form of securities) to earlier participants just like how, in classic Ponzi schemes , money from new investors is used to pay fake “profits” to earlier investors. Recently, the SEC has sued the alleged operators of large-scale pyramid schemes for violating the federal securities laws through the guise of MLM programs. When considering joining an MLM program, beware of these hallmarks of a pyramid scheme: No genuine product or service. MLM programs involve selling a genuine product or service to people who are not in the program. Exercise caution if there is no underlying product or service being sold to others, or if what is being sold is speculative or appears inappropriately priced. Promises of high returns in a short time period. Be leery of pitches for exponential returns and “get rich quick” claims. High returns and fast cash in an MLM program may suggest that commissions are being paid out of money from new recruits rather than revenue generated by product sales. Easy money or passive income. Be wary if you are offered compensation in exchange for little work such as making payments, recruiting others, and placing advertisements.
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Ask to see documents, such as financial statements audited by a certified public accountant (CPA), showing that the MLM company generates revenue from selling its products or services to people outside the program. Buy-in required. The goal of an MLM program is to sell products. Be careful if you are required to pay a buy-in to participate in the program, even if the buy-in is a nominal one-time or recurring fee (e.g., $10 or $10/month). Complex commission structure. Be concerned unless commissions are based on products or services that you or your recruits sell to people outside the program. If you do not understand how you will be compensated, be cautious. Emphasis on recruiting. If a program primarily focuses on recruiting others to join the program for a fee, it is likely a pyramid scheme. Be skeptical if you will receive more compensation for recruiting others than for product sales. The SEC has taken emergency enforcement action to stop alleged pyramid schemes that violate the federal securities laws, including schemes disguised as MLM programs. For example, in a recently filed litigation, SEC v.
For the original version including any supplementary images or video, visit http://go.usa.gov/DzHG

There is an abundance of false information on the internet, so you should only trust sources of information that you find reliable. This article will help you gain some insight on things you can do to practice network marketing tips that prove to be current and accurate. One way to look at network marketing is as a mad dash to recruit the most participants. TIP! Social networking sites are a great starting point for network marketing, until such time as you can establish your own website. You can even devote your energy to an active and compelling blog. You should always try and visualize success when you will have in MLM. This may sound overly trite and extremely generic, but when you are doing multi-level marketing, seeing the future is important as the size of your network determines your level of success. Positive creative visualization is an effective practice in network marketing.
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Find Success In Multi-level Marketing With This Information | IT World Web

These are all great questions that I will be tackling head on and answering in this article so make sure you keep reading. We all love the idea of being able to work from home, relaxing on the sofa while earning cash with nothing but a PC and internet connection. The flexibility and freedom attached to it is something that some people can only dream of having. Thankfully, the birth of multi level marketing is something that’s made the dream far more reachable for the average Joe. It’s a way in which one can start their own home business without having to risk and put their life savings on the line due to the typically low start up costs involved with most companies. I’m sure you have already heard of some MLM giants such as Amway, Avon, Kleeneze and Herbalife. Each of these companies have their own niche and set of product lines which stretch from cleaning materials to beauty treatments. However, not only do they have a vast range of products but they also have an income earning side to the business as do all multi level marketing companies. You have the option to either become a customer only or what’s known as a distributor or also referred to as a reseller.
For the original version including any supplementary images or video, visit http://bit.ly/1984hpr

Multi Level Marketing Menurut Shariah

( Al-Qawaid : Ibn Rusyd , hlm 601 ; AL-Qawaid Al-Fiqhiyyah, Ibn Juzay, hlm 294) Mazhab Syafie : Harus hukumnya kecuali pandangan ganjil dari al-Mutawaali yang mengharamkannya . ( Al-Majmu’ , 7/500 ) Mahzab Hanbali : Ibn Quddamah berkata : “Ghabn Mustarsil adala apabila si pembeli membeli dengan harga yang terkeluar dari harga pasaran … teruatamanya apabila didesak ( agar tak pergi semak kedai-kedai lain dulu) dan cuba disegerakan oleh penjual ” ( Al-Mughni , 4/78 ) Justeru, perbincangan panjang tentang ‘Ghabn’ sebenarnya menunjukkan terdapat jenis ‘Ghabn’ yang disepakati haramnya oleh ulama, ada yang disepakati halalnya, dan terdapat yang diperbezakan pandangan. Justeru apabila saya sebut ‘ghabn’ sebagai salah satu sebab boleh jadikan MLM haram, maka ini kerana berkemungkinan jenis yang disepakati haram itu berlaku. Justeru, semasa menulis artikel anda perlu faham target saya. Adakah anda yakin semua jenis ‘Ghabn’ yang berlaku dalam MLM itu tergolong dari golongan yang harus ?. Jika ye, maka itu pandangan anda , bukan saya. Saya lebih selesa berpandangan ia banyak jenis ‘Ghabn’ yang berlaku lebih menjurus kepada haram terutamanya apabila hampir semua syarikat-syarikat MLM ini amat mengambil mudah akan hal hukum agama. Jika tidak, pastinya mereka telah mengambil Penasihat Shariah sejak dari awal. 2) Belian Peribadi target sebagai syarat komisyen : Selain dari yuran yang wajib dibayar oleh ahli, pada kebiasaannya terdapat syarat yang mewajibkan ahli tersebut mencapai target belian tertentu bagi melayakkannya mendapat apa jua komsiyen dari hasil jualan orang di bawahnya. Apabila ia gagal mencapai harga target’ tersebut maka keahliannya akan hilang atau tiada sebarang komisyen untuknya walaupun orang bawahannya menjual dengan begitu banyak. Semua MLM yang terlibat dengan syarat seperti ini, menyebabkan sistem MLM mereka menjadi bermasalah dari sudut Shariah kerana wujudnya unsur kezaliman terhadap ahli selain wujudnya kewajiban jualan bersyarat dengan syarat yang tidak menyebelahi ahli serta berbentuk penindasan.
For the original version including any supplementary images or video, visit http://zaharuddin.net/pelaburan-&-perniagaan/222-multi-level-marketing-menurut-shariah.html

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