MLM Frauds ? How to Avoid Them

Abraham Lincoln said "You can fool all of the people some of the time, and some of the people all of the time. But you can't fool all of the people all of the time." I sometimes wonder whether it was prophetically written for all those scam filled home-businesses, and Multi-level Marketing Companies mushrooming all over the place.

While network marketing is one of the best models of free enterprise, scamsters have created a bad name for this system of enterprise by exploiting the loopholes in the laws in every country in the world to rob people legally in the name of Network Marketing or MLM's.

Here are a few tips on what to look for and avoid in selecting your MLM opportunity.

Avoid binary and forced matrix schemes as they are pyramids which will only benefit the persons at the top. A good MLM plan should allow you to surpass your sponsor or seniors in the hierarchy as well as in incomes if you work harder and produce more results.

Look for good quality products when you chose an MLM. All business and commerce is based on exchange of fair value by way of product or services for money. If there are no products or only a token product sold as the kit it cannot be legitimate.

Following from the above any company focused on recruitment and paying for recruitment directly or indirectly is not legitimate business. It is only money circulation.

If the cost of entry is high and the start up kit is loaded with products, it is a clear warning signal. They may be aiming for one time sale at the time of recruitment itself. The entry cost should be very low with only the business manuals and a few samples.

Check what the annual renewal fees are. There should ideally be no renewal fees and if there are it should be negligible.

If the stress on the business meetings is on income testimonials, you should ask for percentage of people making such incomes. Good companies do not focus on income testimonials as the ability to earn incomes vary from person to person.

Multi Level Incomes are a reward for your hard work in promoting and creating sales volumes through personal and group business of your team. So look for companies focused on direct sales of high quality products. Beware of companies focused on recruitment.

Knowledge is the key not to be defrauded by scamsters and illegal pyramids. So check out these resources for learning more if you want to start a home business through the network marketing route.

www.wfdsa.org

www.mlmwatchdog.com

www.bbb.org/alers/scams.asp

The truth is there are no over night millions to be made in any legitimate home based business. It needs dedicated work for a year before you can see those mega bucks. In the first year unless you are extraordinary you can make money only in hundreds not millions.

If you are very consistent with your MLM or Network Marketing opportunity for a couple of years, the momentum picks up and you may see big earnings.

Then you can relax and enjoy your promised dream life of leisure and riches. Till then you have to work and work pretty hard for a couple of hours every day at an opportunity that is legitimate, a company which is in business for at least 5 years plus in the business and with unique, high quality products.

R.G. Srinivasan is a Certified Trainer, Writer and Author with more than two decades of managerial experience. He also writes a regular blog on home-business resources which you may check out at http://www.home-businessresources.blogspot.com for online marketing tips, resources, opportunities and online promotional strategies

---

Multi-Level Marketing with Email Leads

The multi-level marketing independent distributor continually faces the challenge of... Read More

To Be Successful in Network Marketing Requires One Thing, Success in Life!

Most people want to be successful in life. There are... Read More

Building Your Network Marketing Business

Network marketing is experiencing tremendous growth in the business arena... Read More

Network Marketing Training - The Single Biggest Mistake Made in MLM Today

So...you have joined a Network marketing Company, and you are... Read More

Starting A Home-Based Business: Some Ins and Outs

Would you like to earn money by starting your own... Read More

MLM Network Marketing - Why Failure Rate Is so High?

In recent years people are increasingly looking for extra source... Read More

Business Team Leadership: Pull Them, Dont Push Them

This article is primarily directed toward people who work at... Read More

The Nightmare of MLM Recruiting

The reasons for failure are quite simple but many have... Read More

Why People Say There is No Money in Internet Marketing

Just finished check my email. Nothing new, three payment notification... Read More

Steps That Spell Success in MLM

Many people want to get into multi-level marketing without knowing... Read More

Traditional University or MLM University? You Choose

Time moves very fast and time is money, as they... Read More

Home-based Business Opportunity, Anyone?

It seems home based opportunities are a bit more common... Read More

2 Steps to Spur Your Downline Into Action!

It is often the case when you join a Network... Read More

Which MLM Opportunity?

So, you have become an MLM Opportunity Seeker and you... Read More

Do You Really Want To Try Network Marketing?

Make no mistake it takes a unique skill set to... Read More

Network Marketing: Extended Definition

Entrepreneurial spirit is sweeping the Nation's interest at a phenomenal... Read More

Your Magnificant Obsession

Wow! You've just signed up for the greatest prgram on... Read More

Are You Living the Life You Imagined?

Do you feel strong, healthy, financially secure?Are you too busy... Read More

A Fast Way to Find Clients

So you've gotten the training certification, made up your business... Read More

EXPLODE Your Network Marketing Team Into An INCREDIBLE Recruiting Machine!

Let's face it! Most people who join a Network Marketing... Read More

MLM Leadership ? How They Fail You

The success in your MLM career depends to a great... Read More

The Three Primary Powers Of Network Marketing

Network Marketing, 'MLM', and Multi Level Marketing are all terms... Read More

Hey, I Have A Prospect! What Should I Do Now?

If you are in multi level marketing system, you have... Read More

Ten Tips for Success in MLM, Network Marketing

MLM, Network marketing is the ordinary person's best opportunity to... Read More

The MLM Dilemma

Does this sound familiar...?You have taken ALL of the company... Read More

MLM Training Tools:The Top 10 Resource Sites in Network Marketing for MLM Tools

There are many great MLM Tools that are available, and... Read More

MLM - Sure Thing or Scam?

Be your own boss! Set your own schedule. Retire Early!... Read More

The Nuances of Networking

Mention the word networking and you usually either get a... Read More

MLM Newsletters- The Top 17 Network Marketing Training Ezines in MLM

A good MLM training newsletter is worth a million dollars... Read More

Lead Generation: An Overview

Multi level marketing is a type of business where a... Read More

The Value Of Networking With Other Moms

There are many moms that have made the decision to... Read More

MLM Blunders

It's really strange! Too many people start an MLM business... Read More

The MLM System

There are many ways to build an MLM business, and... Read More