Although there is some good advice on this board about scams, I thought the following advice would make it easy to identify the difference between a real opportunity and a scam. Good luck! 1) Are you required to "invest" a large amount of money up front to become a distributor? This investment request may be disguised as an inventory charge. Legitimate MLM businesses do NOT require large start up costs. 2) If you do have to pay for inventory, will the company buy back unsold inventory? Legitimate MLM companies will offer and stick to inventory buy-backs for at least 80% of what you paid. 3) Is there any mention of or attention paid to a market for the product or service? MLM depends on establishing a market for the company's products. If the company doesn't seem to have any interest in the consumer demand for its products, don't sign up. 4) Is there more emphasis on recruitment than on selling the product or service? Remember, the difference between MLM and a pyramid scheme is in the focus. The pyramid scheme focuses on fast profits from signing people up and getting their money. If recruitment seems to be the focus of the plan, run. Run fast, and run hard. The next question will help you determine what the focus of the company is: 5) Is the plan designed so that you make more money by recruiting new members rather than through sales? Some MLM opportunities pay a commission on recruiting new members, but sales, either by you or through your downline, is where you make your money. MLM and pyramid schemes are diametrically different only in this regard, and that's why they are so easily confused. As always, when you're investigating a potential business opportunity, you'll want to gather all the information you can about the MLM company's products and operations. Take a good hard look at the opportunity. If becoming a millionaire was easy, we'd all be millionaires. The old saying "if it looks too good to be true, it is" is a good starting point.