11. Joining Multi-Level Marketing Schemes
Earlier on this list, we talked about avoiding get-rich-quick schemes. Unfortunately, people who are willing to work hard are also tricked into scams as well. Multi-level marketing companies are just a nicer way of saying pyramid schemes. Here’s how they work: A company asks you to pay for inventory up-front, and they ask you to sell to your family and friends. These are often through parties, whether virtual or in-person. You may offer a discount or free products to your friends if they’re willing to have a demonstration in their house.
After a while, you begin to realize that selling this product is incredibly difficult. There’s only so much you can unload on people you know. You’re already in debt from buying the up-front inventory, so the only way to make more money with this company is by recruiting others to sell. The higher up on the recruitment pyramid you are, the more money you make. And those left at the bottom are in debt 99% of the time. Only the top 1% of the pyramid make a substantial amount of money. Hence, a pyramid scheme. Educate yourself on MLM’s, and don’t fall for their tricks. They will promise you success, but it’s really just a way to trick you out of your money.