Another one of the great examples of businesses in which people get involved in to “invest” are the multilevel businesses that are so popular today. The paradise that this type of business promises to guarantee is centered upon building a family of investors, where at the same time they are clients. They are beneficiaries of a working system as a whole.
The reason why people are easily attracted to this type of business, apart from the great desire to earn easy money, is reflected by the same corporate impact that the company has in the industry.
Yes, clearly the business model works; the most consistent examples of this being the committees or meetings that are frequently held where the seller that is in the “Diamond” or “Star” category convinces the public of the fantastic life he has – filled with travel, bonuses and the free products he receives in exchange for sustaining the “family” of associates who are under them in the business hierarchy.
The truth is that for the bravest and least ambitious people, the logic of this business is the same as that of a passive shareholdership.
What is what they are looking for in businesses with this structure?
The structure of a multilevel business is far from resembling a pyramid. In fact, when the concept of financial pyramids began to sound contemptuous throughout Mexico, these businesses elegantly decorated their business structure by starting to call it multi-level, leaving aside the term pyramid.
What Happens Here Is the Following:
The company is dedicated to the marketing of products whose virtues seem more than magical: they promise to eradicate cancer, stimulate your daily energy levels or help you lose weight.
Also, of course, some products work perfectly, so the company itself is a leader in its industry.
That is why the business offer seems to very trustworthy.
The new customer is convinced to enter the business and as more new members join the organization the better the percentage of income that the company will pay.
The cost of affiliating to the company is to buy the products frequently or to sell a determined minimum quantity per month.
If you manage to sell more than you do stipulate, then you get bigger profits.
In the meantime, you should focus on attracting new salespeople to go up the ladder and earn a better income.
You merely are a client attracting other clients.
However, behind this impressive structure, you are just that: one more customer. The company is actively involved with the monthly purchases you must make or the products that you must sell.
That way, you are a kind of passive shareholder who has fallen into the networks of a business that is inherently lucrative for those in the highest or most advanced positions, being the most senior position close to the very boss and owner of the company.
This is why this type of “investment” has become a promising business and an easy way to monetize money that many people dare to enter into. Yes, many will experience success, but the numbers of people who have to leave the ranks of the business are also enormous, disappointed by their difficult work system.