How to Avoid Network Marketing or Multi-Level Marketing (MLM) Scams

by Remi Badozi on September 20, 2010

Network Marketing Scams and MLM Scams – How to Avoid Them

Network Marketing Scams and MLM Scams can sometimes be very difficult to distinguish from an honest Network Marketing business from illegal pyramid or Ponzi schemes, mainly because they too tend to portray themselves as MLM companies.
If you are looking to join a Network marketing opportunity, firstly, you need to keep a strict rein on your own enthusiasm until you have done your background homework in the MLM Opportunity. The fact that you absolutely love a particular product or service is not a guarantee that enough people will also love it enough for you to be able to generate the cash to make a sensible business proposition.
Secondly, you should seek to get honest and accurate answers to the following questions in order to determine whether a network marketing or multi-level marketing opportunity is worth your while and indeed your money.

Why do you want to do this?


If your reason for wanting to get involved in a particular MLM opportunity is to help you out of a cash crunch, then you need to forget it right now. However, if you believe it would make you richer in about a year or two, then that is a very good way to start as it means you have a vision. You need to have a vision to be successful in any Network Marketing. The most important reason for getting involved should actually be because you really believe in the product, which gives you the best likelihood of success with it.

How were you recruited?


Like I said earlier it is very essential that you believe in a product before you get yourself involved. Therefore, the manner in which you were recruited says a lot about the opportunity. Were you recruited primarily as a customer, with just a mention of the income opportunity, or were you told about the business opportunity before you get the chance to try the product? The decent way to recruit into a network marketing opportunity is to sign people up as customers first, and then if they like the product, they’ll be drawn to the business and become a distributor. Be very concerned if someone tries to sign you up as a distributor at the outset without you ever trying the product.

What is the product?


Even if you have never sold anything in your life, the fact that you believe in a product would be a very useful point to start on your journey of selling. Ensure that the product would sell very well. Do your research and find out what the competition is like. Become a devil’s advocate by questioning and probing if anything is not quite clear about the product. Do not expect to become a sales expert overnight, it takes time but you need to know about the product you want to sell.

Who introduced you to the company (your upline)?


How well do trust the person who introduced you to the opportunity? Is the person willing to divulge to you exactly how much they have been making? Take it all the way to the top and find out about the founders of the company; what is the company’s success rate?

When are you likely to start making money?


Find out from your upline when you are likely to start making money. If there is a demand for the product, realistically, you should be able to recoup your investment and start earning income within few weeks. Turn your back to the opportunity if you are told it takes (or may take) months or even years before you can start making profits. Also ensure that in practical, you would be able to work part-time with the opportunity and still be in a position to earn steadier income from other sources.
In conclusion, you must ensure that you go into the opportunity with your ears and eyes wide open. So many people have made a lot of money in network marketing, MLM, and consumer direct marketing, likewise a large number have ended up wasting a lot of time and money chasing a non-existent dream.

If you are looking for an honest network marketing opportunity or are excited about your network marketing opportunity and would like to learn how to effectively generate tons of leads for your business then, take a look at my recommendation and let me help you take you and your business to the next level by filling in the form below.

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