There is a constant trend in forex that is that is fueled by multi-level marketing strategies which promise to bring an income that is passive as a side income and, even more exciting financial freedom. Be cautious or take a risk when investing in something you’ll never make gain from.
A lot of us have received an email from a friend or family member who wants to promote a ‘once chance in a lifetime to earn money by joining the program that teaches you to make more money frequently praising the methods used by the greats like Robert Kiyosaki and Sharon Lechter who wrote Rich Dad Rich Dad, Poor Dad.
They force you into an all-level marketing strategy instead of focussing on the reason why you were a part of the company, it is trading forex. A majority of your time will be focused on recruiting new members to the company since you are paid affiliate commissions in a pyramid structure. The Rich Father, the Poor Father has never mentioned earning money through pyramid schemes. However, they do not tell you about it.
If you are targeted by one of these schemes, you’ll be told that you can transform your life by making tons of money which can allow you to leave your job and travel around the world , achieving financial independence. But if that’s the case then why would someone supposed to be making a lot of money attempt to get you involved instead of be focused on his money-making machine?
Let’s examine the ways in which this system begins and concludes.
Step 1: Convince Victims
An ad-hoc recruiter offers an unwitting person the promise of financial freedom and how they could earn a lot of money on the forex market. The truth isn’t always so simple since the market for forex experiences significant volatility, which experienced traders can make a profit.
The person who recruits people tries to persuade individuals to join the forex system and they even attempt to guilt-trip their relatives and friends to sign up.
If it is uncomfortable to solicit people in person, it’s normal for recruiters to begin posting “the lifestyle they envision on social media pages and inviting the followers of their page to follow on the road towards financial freedom.
You must keep in the forefront of your thoughts that the person you are referring to was recruited by another person.
Step 2: Buy A Product
When you sign up to a multi-level marketing firm, you’re required to purchase products such as training courses and videos and trading signals from more knowledgeable traders, and related products. The idea is that the more you buy more likely is the chance of becoming an experienced trader. If you buy a product that you’re interested in, you’re added to the recruiter’s list of downlines, meaning that the recruiter receives a fee to bring them into your system. The recruiter also receives an income when you bring people to join your downline. This is when the conflict of interest begins to come out…
Certain forex MLM firms offer memberships in which you will be granted a rank and given an opportunity to improve your position by bringing people to join your downline. The review etoro higher up in rank you climb, the more members you have in your downline and the higher your earnings.
I refer to it as conflict of interests since you joined forex in order for trading and not to be a salesperson.
Step 3: Lose At Forex
Many studies reveal that a small percentage of forex traders make money, and one report states that the majority of forex traders leave after the second year. What I will guarantee that you are aware of is that trading in forex isn’t easy. Based on my experiences in trading it is essential to be prepared to lose. I’ve lost money on trading, even when I made a profit. A lot of traders make money, only to get a loss on their next trade.
I’m not trying to put a slam on anyone’s work or deter people from trading forex however, the risk involved in trading in forex is usually dismissed by the forex trading firms as well as their recruitment agents. There are traders who are successful and have made a lot of profit from trading, however they make up only 5-10 percent of traders.
Step 4: Concentrate on Recruiting, Not Trading.
After a series of unsuccessful trades, the recruiter discovers that bringing members into their downline has brought the company more than they could have made trading. The conflict of interests that I discussed earlier begins to grow since they are now focused on attracting more people, who, in turn join their own downlines to form an pyramid like the picture above as the hope of climbing the ranks and make more money.
Step 5: Spend More on products
The company will encourage you from the Forex MLM company to purchase more items to enhance your trading abilities or give to your downlines to aid their efforts or to attract new candidates. As you build your downlines, you will earn cash to purchase the new products and give back to the business. They will also hold conferences where the top of the ladder will become spokespersons who encourage and advise you to not quit on your dream. They will appear as the goal you’re aiming for and you pay for events and seminars to learn more and expand your network within the industry.
Forex trading is usually described as a means to enormous financial gains. This isn’t always the case, however, it can also be the path to a massive financial losses. Only a tiny fraction of forex traders make money and the forex multi-level marketing businesses aren’t able to tell you that.
I am not against people who work for multi-level marketing organizations but the conflict of interest it usually creates is a red flag for me. If you begin to spend more time recruiting than trading, you are not fulfilling the goal you’ve set out to accomplish.
This isn’t to discourage you from signing up with an online multi-level marketing firm for Forex. It’s just that I want to show the secrets of these organizations, things that you aren’t aware of until you’ve already in the process of signing up.