MLM Scams

Discussion in 'Network/Multi-level Marketing' started by samda, Jul 23, 2008.

  1. samda

    samda Member

    Dear Community members

    Most of the MLM schemes that i see today are turning out to be a scam. So be careful about this issue.

    Last week one of my friend came across an MLM company. He went to the meeting and he was priasing the firm. (They gave a lot of hypes it seems).

    He was about to invest a large amount despite my advise. But luckily the firm was closed and the owners were arrested just two days ago. He thanked me. So THINK TWICE BEFORE YOU JOIN A MLM / PYRAMID money making firms.

    Most of them are scams and eat away your hard earned money....[​IMG]
     
  2. mountainmom5

    mountainmom5 Gold Member

    I agree - when I was doing my research for an mlm company (I knew there are legit ones - they have always been around)... I didn't know there were so many companies to dig through!

    I narrowed my search down real fast when I started asking a few simple questions...

    1) Can I see the policies and procedures (many reps didn't even know where they were or IF they had any!)

    Those p&p are quite enlightening - I have a friend that got terminated from his company after he had built his business and was making a hundred grand a month, another guy was making about thirty grand and lost his check overnight...all because of a small clause in the policies that gave the company the right to do so.

    So, you bet, I wanted to see what it said!

    2) I like the 10k question the best - How many active people are needed in your downline to have a walk away check of ten thousand a month...?

    Most had no idea and of the ones that had a slight idea, it varied anywhere from about 500 to over 20,000..

    I know that it takes some effort and time to build it up to 10k a month but I want to know what it takes at least. If I have no idea what my goal is - how can I expect to hit it??

    Anyways, it helped me a lot to wade thru the scams that way - it takes some time but it is worth it.

    [​IMG]
    Viola
     
  3. getagrip

    getagrip Gold Member

    samueldarwin: He was about to invest a large amount despite my advise. But luckily the firm was closed and the owners were arrested just two days ago. He thanked me. So THINK TWICE BEFORE YOU JOIN A MLM / PYRAMID money making firms.

    That's very good that they were caught. A lot of MLM companies don't make their money from product sales, but from sign up fees, which makes them pyramid scams.
     
  4. PMHayes

    PMHayes New Member

    samueldarwin: MLM / PYRAMID money making firms
    MLM and pyramid are NOT one and the same.
     
  5. PMHayes

    PMHayes New Member

    To further differentiate pyramids from MLM, pyramids are illegal and MLM's are not. MLM is a legitimate business model. It sells a product to a comsumer and the distributor makes a profit selling the product. The distributor also can earn a percentage of business done by people they bring in as distributors under them. This is not a scam, it's brilliant!
     
  6. luvtravel

    luvtravel New Member

    I can tell you I joined a travel MLM and never got commissions for 3 sales I made, be careful!
     
  7. itsjoanne

    itsjoanne New Member

    PM Hayes is right. There is a big difference between multi level marketing, or network marketing ,which is perfectly legitimate and legal, and pyramids or ponzis which are NOT legal.

    An MLM has a product or service. People do not get paid simply for enrolling someone, there must be a product purchase for commission to be paid.

    Otherwise, its NOT an MLM.

    Joanne
     
  8. pcwork

    pcwork New Member

    luvtravel: I can tell you I joined a travel MLM and never got commissions for 3 sales I made, be careful!

    Can you name the travel MLM?
     
  9. Homejames

    Homejames New Member

    itsjoanne: ......People do not get paid simply for enrolling someone, there must be a product purchase for commission to be paid.

    Top Tier Direct Sales Companies who use NetworkMarketing,attract the BEST Entrepreneurs, who already understand the concept of "Getting Something" for your $/??/Euro.

    Their advertising is in the Form of Shared Knowledge and a REAL Opportunity that is Useful.
     
  10. GavinStephenson

    GavinStephenson New Member

    Always look for good review and testemonials before joining any MLM. Scams are there but I hardly see em because they are normally the ones where people are spamming you with emails

    I prefer to have people chase me its a just better method of marketing
     
  11. marketingcoach

    marketingcoach New Member

    Age of the MLM is a tell tale sign.
    There are only about 5 MLM's out there that have been around for more than 20 years. My primary MLM just had a 25 year anniversary.

    In order for an MLM to be successful for that long, all aspects of that company have to be on track. Management, products, services etc.

    I wouldn't even consider joining an MLM unless its been around for at least 5 years, but thats just me.
    Most seem to fail right around the 2 year point. So don't get caught up in the hype.

    It would be a sad day if you built up an impressive organization, were making 5k/month and one morning you wake up and learn that your MLM is gone. I'd rather not take that gamble, my time is worth too much.
     
  12. Smart25

    Smart25 New Member

    Hello all,

    Yes, there are too many scams out there. I used to fall for those at the beggining of my network marketing career. You have to become a student of this industry in order to better spot a scam.
     

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