Hangover Joe's follows MLM scam ideology
(if anyone has noticed Santa's Outlet Harold Brothwell's Linkedin, MLM group is "liked")
Pressure To "Buy-In" and stock inventory: All MLM businesses will have some start-up costs. Because you are an independent representative, you will need to pay for all your office expenses, product kits and so forth. What you want to watch out for are "fast track" programs or pressure to have inventory that requires additional investment. While today, MLM companies are required to buy back inventory, you don't want to be saddled with debt before you start and truly understand the business.
Having a few popular products on hand can be nice, but don't fill your garage with products unless you know for sure, based on your experience in the business, that you can sell them.
Poor Company Communication: Don’t be afraid to ask hard questions. If you don’t get solid answers back or are chastised for not being a positive thinker or believing in the company, consider this a red flag. In order to be successful at any business, you need strong support and solid training. The law requires MLM companies give you a slew of information, including financial details about average income. Study this and ask questions.
If the rep is hesitant to answer or glosses over your concerns, he's not someone to work with. A legitimate MLM company wants you to be informed
Pay For Training or Other Business Items: Amway got into a bit of hot water for the sales of tapes many of its reps created and sold. Most representative teams and the company have free training either locally or online. While they may also have additional training (i.e. audiotapes), you can buy, there shouldn't be pressure to do so. If a company routinely pressures you to pay for training (outside of a typical annual convention) this is another red flag.
Deceptive advertising practices: Some MLM reps will promote their business as a "job" or use other description?s to lure prospects. MLM isn't a job, it's a business. Any MLM rep promoting "employment" is using deception and isn't someone you want to work with. Other deceptive (and often illegal) practices include making income guarantees or suggesting you'll make money doing very little.
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