Disadvantages of
Network Marketing
Network marketing agreements
require considerable care in writing and setting up in order to avoid problems at a later date. It is advisable, if considering implementing a network marketing
scheme, to consult an attorney, as
well as experts in this area at an
early stage. Like franchising, network marketing is complex and often under attack by regulatory agencies. A neophyte or amateur proceeding on his or her own is almost certain to
encounter some difficulty that could have been avoided by seeking advice and consul from a specialist.
Network marketing is closely
watched and criticized. A frequent criticism extended towards network
marketing companies is that many
of them resemble what is called “a
pyramid scheme” Pyramid schemes
are similar to chain letters where the
last recipient is asked to send up-
line recipients a certain amount of
money. Typically, those who start
pyramid schemes, get rich (providing of course that they don’t get
caught and thrown in jail) where as
people who get in on the bottom are taken for suckers. Another criticism of multilevel marketing is the emphasis placed on recruiting new distributors. Little emphasis is placed on actually selling products to end users.
# THE MULTI – NETWORKER.
SIR HARRY LOFTY.