Network Marketing Tip: No Front-loadingThis network marketing tip is almost gospel. First, a quick definition of what front-loading is, then I’ll explain how to avoid it and spot from a distance. In front-loading, a distributor tries to tell a new recruit that they must buy excess product. The distributor wants you to do this so that he makes more money. If you come in with a $25,000 order, he makes more money, of course. I’ll save the math on this for another page, but in most programs, you will have to recruit many, many people to achieve a serious income. Think of a number in the thousands. No joke. By getting people to front-load, unscrupulous companies or individuals can earn much more money from a far smaller group. Free EbookSign up here to get a free ebook on the top 4 problems with MLM and how to solve them:The ProductThe product can be anything. Companies have gotten in trouble for front-loading water filters, diet supplements, even websites. Take a look at this website for a quick breakdown of how this has happened in the past.In some cases, you might think, hey, I can eat this stuff, so it’s not a big deal. But in most situations, you simply can’t use enough of the product to justify a large order. Like water filters. How many can you use? I was in a company that would have sold me dozens for me to use personally. You might consider this another network marketing tip on its own. Which brings up why it is such a misleading tactic. If you buy more than you can use, you have to sell some to someone else not in the opportunity. You recognize this as retail sales. In many companies, no retailing happens. How can a person buy, say 200 of the same item, and never retail any? That turns into a pyramid scheme. Front-loading is a huge red flag indicator of an illegal pyramid. How to Spot itWatch for programs that require you to buy more than you can use. Or, programs that don’t teach you to retail the product or service. Another problem to watch for: if the main purpose of the organization is to recruit others just to move money, just to earn something on the person signing up, not to benefit from the product.Basically, follow the money to find what the problem is. If you have to pay tons to get in, or if you have to buy more than you can use, as in front-loading, you likely have just found a problem. Check out
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