I have noticed that there are still a lot of pyramid scheme-type reps/distributors posting on the Facebook sales groups. Before clicking to “PM for more info” I ask you to read this…
As with any business venture (because signing up to be a distributor is essentially starting a self-employed business) you should do some research into the market. To save you a lot of time and effort, I have done that for you.
Here are some articles that you may like to read and a couple of videos to watch.
A Satirical View of MLM by John Oliver
How To Spot a Pyramid Scheme
If, after reading the above, watching the videos and doing some of your own research, you still think you may want to go ahead, here are a few more things to consider:
1. No one with an IQ above 75 has stuck with this for long. If you have above-average intelligence, you’ll soon realise “social selling” is not for you.
2. Despite the claims, it is an incredible amount of work. You will not get the promised £200-400 a month for 1-3 hours a week. You’ll be expected to do 30-40 hours a week or more of tedious, repetitive social media posting. Then on top of that, you’ll have to reply to comments and private messages, etc. Sure, you may already spend 3 or 4 hours a day on Facebook, Twitter, Instagram, SnapChat, etc, but that’s YOUR time doing what YOU want. Add another 5 or 6 hours a day doing what someone else wants you to do and suddenly you have no time for kids, family, friends…
3. The money isn’t that great. When you factor in the amount of time and effort you must put into it, the average person isn’t making all that much. The average hourly earnings of people involved in MLM (multi-level marketing) is £2.28 an hour. That’s the AVERAGE. Which means there’s an awful lot earning LESS than that. In fact, over 23% have admitted it actually costs them money!
4. Many of your friends and acquaintances will come to resent and despise you and your incessant sales pitch. You have probably already seen the reception a lot of posts get on the Facebook groups. How would you feel if your family and friends reacted the same to you?
5. Stop to consider if the product is “so great it practically sells itself”, why are you being asked to help sell it? People who are genuinely on to a good thing, don’t give it away easily or without a catch… especially to someone they’ve never met! Stop and give it some serious thought. There’s a reason they won’t tell you much about the product until you have signed an agreement – or paid your fees to join.
6. Signing up as an INDEPENDENT Representative means you will be SELF-EMPLOYED. Therefore it is your LEGAL OBLIGATION to register with HMRC even if you’re only planning to do this part-time for a couple of quid extra each week – failure to do so could result in a fine.
Becoming an Independent Representative COULD affect your benefits. You MUST tell the DWP of your change in circumstances – failure to do so could result in a sanction and/or prosecution. Similarly, if you claim Housing &/or Council Tax benefits (or they are included in your Universal Credit) you MUST let your local council know – failure to do so may result in prosecution.
If you’re OK with all the above, then I wish you luck… I really do – because you’re going to need it!