Beware: MLM Alert

As recession hits, people could feel the pressure find jobs and earn a quick buck. However, you should be cautious when an offer seems too good. These companies like to target fresh graduates from polytechniques and universities, stay at home mothers etc.

First, let's be clear: Multi-Level Marketing (MLM) is NOT LEGAL in Singapore. (With 3 exceptions: insurance, direct selling, master franchises)

So, what are MLMs? An MLM is a business structured by ranks, and to climb up the ranks, you have to recruit other to "join your team". Other terms used for MLMs would be: network marketing, pyramid schemes (you may argue that pyramid schemes do not have actual products, however, the structure is essentially the same).

Why are MLMs damaging for you?

• They persuade you by creating an ideal lifestyle, about making money as an entrepreneur and breaking out of the employment system, but what you don't realise is that when you join as a recruit, you are an employee for them.

• They rope you in with emotions, you are not thinking logically.

• Chances are, you won't get rich through this scheme. How likely is someone to be persuaded to purchase your products/services? If the situation gets worse and you feel pressurised about reaching goals, you could fall into a spiral of purchasing your own products/services.

• Look out for companies that say "we do not have a structured method to pay our teams, it depends on your contribution", and "we pay you by commissions"

• Who are you marketing to? Usually it's your friends, family and peers. Continual pestering of these people will actually make you lose your closely built relationships with these people. Or if they decide to support you in this "lie", they are either going to lose money or join you in this bizarre "business".

• They take up too much time and is damaging to your mental health. Even during your free time, your mind could be preoccupied by thoughts about how to advertise your products/services more.

MLMs prey on vulnerable people during volatile times, so I hope that this post helps you avoid being roped into an MLM. #antimlm