Money Mondays – Are They Really Scams?

BusinessWomanQuestion

 

We have all experienced a home party of some company our friend’s sister’s cousin had over her house. The food probably wasn’t good either.   Whether that party was about cookware, shakes, wraps, makeup, sex toys, make up, creams – whatever – They mostly fall under a multi level marketing system.  Some direct sales business that promised an opportunity to work from home and spend more time with their family.  We often wonder if these opportunities really do generate enough cash for us to quit our stressful full time jobs?  Or are they just another scam?  I have sat through so many parties wondering the same questions.  Can you really be successful in a multi level marketing company?

What we have to remember when getting involved with any of these companies is there will be a startup  cost from a little (some are as low as $25) to a lot (some charge over $250 just to get you enrolled).  Each company has their own startup formula and part of that cost goes to the person who enrolled you.  The goal is for you to continue to enroll new people to make money as well as finding new customers to also buy the products.  That’s the general rule for all of these companies.  It’s more about lead generation and closing sales than selling the products.  The selling of the products is a very small fraction of what you would actually earn.  Is that something that you feel comfortable with?  Some would say no – they think that is the big red warning label that makes these kinds of businesses a scam.  The truth is any business will have startup costs and you will have to continue putting money into your business as you are earning a profit – maybe even before you start earning a profit.  That’s the way it goes.  That’s the solid foundation of enterprise.

The important thing to remember, probably the most important part, is: paying your taxes.  I know that initial great feeling after signing the dotted line – now you’re a business owner!  It’s your own corner of the capitalist world until Uncle Sam comes knocking for his percentage.  If this is not something you are well versed in, or feel comfortable dealing with, definitely look into having a professional do your taxes and save every single receipt that pertains to your business!  After all, you are now considered an Independent Business Owner – regardless of which product you are selling.  The company you are enrolled in will send you a 1099 form at the end of the calendar year.  There are various forms of this form but you will receive the correct one depending on your company.  If you did not receive one, inquire with the customer service of the company.  Even companies like Paypal will send you a 1099 form if you have received monies as a transaction applicable to your business.  Not too long ago a group of women were hit with heavy fines and jail time for using Paypal and not paying their taxes from their earnings.  You have to really mind what you are doing and always take the time to balance your books (budget).  It can be considered tax fraud if you are not declaring your income.  

What’s the deal?  Are they really scams or not?  I do not think as a whole the MLM (multi level marketing systems) are scams.  I do believe some are a bit misleading as far as what you will actually earn. The nature of the sales profession as a whole?  It is not for the weak – regardless of which product you are selling!  Whether you are going door to door, business to business, or home party to home party, you have to hustle more than you probably ever have.  You will have to pour almost 10, maybe 12 hours a day in your business to start with – and in some areas those long days will not stop any time soon.  Social media, no matter how adept you are with it, takes a lot of time to configure and post.  The positive side is once you have busted your butt enough, you will start earning a respectable amount of money from it.  At that point you will be able scale a bit back and not work as much but you may feel inspired to continue kicking butt!  No one tells you this when you first enroll.  It’s always sunshine and rainbows at first until you realize the commitment necessary to achieve success.  With a little organization you can accomplish a lot and in some cases in a shorter amount of time.  If you believe in yourself and believe in your goals then you better get to work.  I will say it a second time – this is not for the timid.  Also, don’t burn out your friends and family with whatever you are selling.  There are millions of other people out there, some you encounter in your every day life and a lot through the web.  Let that be your lead generation.  Put on a friendly face and make it happen.

The best thing to do before you enter into anything or sign on an dotted line is do your own research and know what you are getting involved with.  Is the product you were presented something you actually believe in?  Do you feel it is something you would use and suggest other people should use it as well?  What kind of standing does the company?  (I always do a Better Business Bureau check too. BBB.org)  Do they promote ideals that are too good to be true ?  Also, do you have the time and money to invest in something like this?  Most of us want to quit our jobs in favor of something we are passionate about or something that pays more but aren’t willing to make the sacrifices for it.  It’s completely understandable to want to stay in a company where you know you are getting paid every two weeks.  There is security in that – and hey, a lot of people are supporting a family on top of all their usual bills.  Forking over even an extra $25 can be impossible for some people.  If you feel comfortable answering all those questions and want to jump in then I say go for it.  If you fail, you fail but at least you tried something new.

This may be a scary question but:  What if you succeed?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s