Regardless if you love shopping for women’s clothes or you know a woman who does so, you may have heard of the name LuLaRoe. On the surface, LuLaRoe looks just like any other brand peddling women’s clothing. But once you get to know LuLaRoe better, the truth that it’s a multi-level marketing company recently facing complaints from thousands of its former sellers, as well as several lawsuits in the past year alone, suddenly becomes clear. That’s why in case you still want to join LuLaRoe or some other MLM business, you should watch out for the following signs that you’re falling into a scam and get away from it before it’s too late:
- The products sold by the MLM company are overhyped.
Every business will do what it can to sell products to its consumers. Unfortunately, some companies – especially those of an MLM nature – do it in an entirely different way by sometimes exaggerating some claims surrounding their products. Worse, some customers won’t notice some of the claims written in the packaging of a specific product may be false until they’ve already started experiencing adverse changes to themselves caused by the said item.
The best way to determine the accuracy of any claim presented by a product that an MLM company is selling before joining their ranks as a distributor is to try it out yourself first. If the results of you using an MLM company’s product are as advertised, they aren’t a scam at all. But if nothing positive happens to you after using a product despite following its usage instructions, it’s best not to deal with them anymore.
- A product distributor for an MLM company doubling as a recruiter talks to you more about the pitfalls of holding down a desk job instead of encouraging you to keep it.
A product distributor for an MLM company who doubles as a recruiter to earn a commission isn’t always some random person who you bumped into while you’re walking inside a shopping mall. They can also be someone you know who you haven’t heard from in a long time but then suddenly left a comment on a post you made on your social media account.
MLM distributors who moonlight as recruiters often resort to aggressive tactics to convince people to join them. The exact strategies that they use may slightly vary to avoid arousing suspicion, but one of the most common is slagging office-based work. They’d ask you why you’re struggling to make ends meet in a desk job and tap into any frustrations or grievances you might have regarding it. They’d then pontificate about how you can get out of your desk job, become your boss, and work when you feel like it by joining their MLM company. They won’t tell you to keep your current office-based work while selling their MLM company’s products at the same time as they want you to fall into their trap hook, line, and sinker.
- The distributor/recruiter who’s part of an MLM business doesn’t use the company’s name when convincing you to join them.
Another common tactic that MLM distributors/recruiters use to attract prospects into joining them is intentionally withholding themselves from blurting out the name of the company whose products they sell. You should thus insist on knowing the name of the MLM company when talking to a distributor/recruiter who’s trying to convince you to join them.
If the MLM distributor/recruiter vehemently refuses to say the name of the business that they’re a part of, consider it a red flag and politely decline to talk to them any further.
- The MLM company prioritizes adding new distributors to the fold more than selling its products to customers.
You should note though that not every MLM business wants to scam you as there are legitimate ones out there who turn profit from sheer product sales alone. But if you came across an MLM company that wants its recruits to prioritize getting more people to join them instead of focusing on attracting potential customers, you should run towards the other direction as fast as you can.
A lot of people avoid multi-level marketing businesses like the plague, and their fears aren’t entirely unfounded. As non-profit organization Truth in Advertising had found out, 23 federal lawsuits exist against several MLM companies between 2017 and 2018. You should thus become more cautious than ever when attempting to join an MLM company with the help of the above-listed signs that you’re falling into a scam to avoid facing legal trouble as well as financial ruin. To help make identifying which multi-level marketing companies aren’t scams, consider checking the top 10 networkmarketingnow.com list of legitimate MLM businesses and decide from there which one you want to join.