My 19-year-old daughter was recruited into an MLM the first week of college. She was targeted by an older student who befriended her, took her to coffee, and then revealed it was all a setup for a business pitch. Young people are increasingly being targeted on social media and college campuses. Should financial literacy classes include a section about MLMs and how to evaluate business opportunities? What warning signs should young people know about?
My 19-year-old daughter was recruited into an MLM the first week of college. She was targeted by an older student who befriended her, took her to coffee, and then revealed it was all a setup for a business pitch. Young people are increasingly being targeted on social media and college campuses. Should financial literacy classes include a section about MLMs and how to evaluate business opportunities? What warning signs should young people know about?
Before joining any MLM, ask to see the income disclosure statement. Not the success stories on stage - the actual numbers showing what percentage of distributors earn at each level. If the company does not publish one, that is a massive red flag.
To everyone who lost money in MLM - it is okay. You are not a failure. You took a risk and it did not work out. That makes you braver than all the people who criticize from the sidelines. Dust yourself off and apply what you learned to your next venture.
I respectfully disagree with some of your points. Yes, most people do not make money, but that is true of any business. The SBA says 50% of traditional businesses fail within 5 years. At least with MLM the startup cost is low so the financial risk is minimal.
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