Multi-level marketing is also known as pyramid selling. This is a marketing strategy that has a salesperson recruit other people to become salespersons. The structure resembles a pyramid where people at the top gets compensation from the sales made by people down below. Many people are aware that pyramid schemes are fraudulent and should be avoided at all costs. Unfortunately, there are still people who fall for the scheme every day. It may seem obvious to you that multi-level marketing ploys should be paid no mind, but this isn’t true for everyone. Here are a few reasons why people join multi-level marketing schemes:
They got tricked into the scheme
You have to understand that not all of us have equally been exposed to the world. Some people have never even heard of the term “pyramid scheme.” This group of people is easier to trick than others because they often fall for “too good to be true” adverts. These organizations usually advertise the dream, preaching that you can retire as young as 25 years old. This may scream “fraud!” to you, but to those who have not had as much life experience, it may seem like something that is worth a try.
Everyone wants to have a better life. Some people wish for a new car or for a big, fancy house. Those who have a strong desire to attain these things often become victims. Members of pyramid schemes often post about how amazing their lives are on social media. They upload pictures of houses, vacations, supercars, jewelry, and wads of cash just to attract attention. Once they get the attention that they want, the recruitment process can begin to trick susceptible people into becoming a part of the scheme.
Another group target that is easily deceived is job seekers. When unemployed people see an attractive job ad, it is likely that they will apply for it. Pyramid schemes often have interview sessions, just like any other job opportunity would. However, it isn’t as much of an interview as it is a sale. The interviewer will start using the hard sale method in order to lure you into joining the system. If you ever fall into such a situation, deny the job offer immediately!
The recruiter is a trusted person
This happens when the recruiter is someone that an individual personally knows. When a person joins a multi-level marketing scheme, they are told to recruit more people, starting from their own family. This is because the scammers know that family is the easiest target. Most families support each other regardless of what they do. If your big brother says that the scheme will make you successful, there is a high chance that you will trust what he says. No questions will be raised. The scheme will simply gain one new member of the organization.
They think that the scheme cares about them
One of the most common tactics that people use in multi-level marketing schemes is making their members believe they are important. When you have become one of them, your recruiter will act as if you are friends. You will feel like you are loved and cared for. However, this is all staged. All it does is pull you in so that you are unlikely to leave. This strategy works incredibly well with people who are isolated and vulnerable.
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