How To Avoid Pyramid Schemes and MLM “Scams”

If you have ever sat in a room while a good friend or family member told you about an “exciting ground floor opportunity” then you have some experience with multi-level marketing, also known as MLM. Multi-level marketing has gotten a lot of bad press recently, as some people say they use deceptive marketing tactics, misleading slogans, excess hype and testimonials from people that are not true. Does this mean that you should avoid the network marketing profession? Absolutely not. Here is how MLM scam reviews are hurting the industry and some ways you can avoid the scams.

 

How to Avoid the Pyramid Schemes and MLM ScamsIs MLM Network marketing a scam?

 

This is the question that many people ask after they read about an opportunity that seems too good to be true. The answer to this question is yes and no. It would be silly to think that all MLM offers are legit, but it would also be silly to write off an entire industry just because of a few bad companies.

 

The MLM scam reviews are quick to point out companies that have been less than honest with their customers and affiliates, but ignore those that are actually doing a good, honest job. The crucial part is knowing what to look for in an opportunity. Here are some tips that will get your started on your journey towards financial independence.

 

Choosing a good MLM company

 

Finding a good network marketing opportunity might not be simple, but there are plenty of them out there. Here are some things you should do when looking for a good MLM opportunity:

 

-Find the right company: The first step to finding a good network marketing gig is to find a good company. You should do plenty of research and only choose companies that have mostly positive information. If you see a lot of negative articles there is probably a reason, but be sure to read as much as you can from actual people that have tried it.

 

-Have a plan: You need to come up with your own game plan and outline for success. If you know exactly how you want to build your business it will be easier to find a company that matches your goals.

 

-Study the success stories: You should read some books or articles written by people that you KNOW have had success in the MLM industry. They can impart valuable tips and tell you what to avoid.

 

-Study the products: You need to learn as much as possible about the product you plan to sell before getting started. Be sure it does the things they claim it will and that the product does not have a poor reputation in its industry.

 

-Be patient: Making money through MLM will take time. You should not expect to get rich overnight.

 

How to Avoid the Pyramid Schemes and MLM ScamsMake up your own mind

 

You should not allow a duped relative or snarky online reviewer stop you from trying MLM for yourself. If you do plenty of research you can find the right company to help you reach your financial goals.

 

Now it’s your turn!

 

What do you do when people say that what you’re doing is a scam?  Have you avoided it or have educated them on the business model?  Please leave your feedback in the comments section and I look forward to reading them!


 

To your Success,

Nate Leung

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    Nate Leung

    CEO & Founder @ NateLeung.com at NateLeung.com
    Nate Leung is the CEO and Founder of NateLeung.com, and author of "Virtual Entrepreneur: Live Free With the Business of Your Dreams". He has been an Internet Network Marketing professional since 2001. Nate specializes in blogging, generating highly targeted leads, prospecting, social media and driving traffic. You can find out more from Nate by connecting with him over at Google +. There is no greater passion he has than helping people to succeed in their business. He teaches people how to use the Internet to build a successful Network Marketing business. If you're struggling and or looking for help, contact Nate here.
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    8 Responses to “How To Avoid Pyramid Schemes and MLM “Scams””

    1. Shella Starnes

      Faking it till you make it is always a bad idea. I’ve known friends that have purchase all the fancy stuff on credit card. Sure is a bad way to start your business and bad impression if people figure out that you’re “faking” it.

      [Reply]

      Nate Leung Reply:

      Exactly Shella. Bad idea all around. Be honest, let people know that up front and be transparent is what I always say. Thanks for the comments Shella!

      [Reply]

    2. Kimberly Bodiford

      MLM definitely is not a scam. I laugh every time someone says this to me. If people understood what a ‘scam’, they would understand their job is a ‘scam’. Loved this article! Keep up the good work!

      [Reply]

      Nate Leung Reply:

      Thanks Kimberly!

      [Reply]

    3. Sigrid McNab

      Nate, like Ryan, I love that last paragraph.

      Too often, people let themselves be swayed by the opinions of somebody who literally has no idea what they are talking about.

      They let their dreams be stolen from them big time!

      [Reply]

      Nate Leung Reply:

      I agree! Well said Sigrid!. :-)

      [Reply]

    4. Ryan Biddulph

      Dude, that last paragraph says it all Nate!

      Never allow the emotionally-charged opinions of a few dictate your life.

      I know many unhappy people, who are begging for a change, who refuse to make money online because they feared being scammed.

      You can get scammed through online and offline ventures, or in dealing with any person….this is life lol…go forward with faith, good things will happen for you.

      Thanks!

      [Reply]

      Nate Leung Reply:

      You can’t have one without the other. Yet, people are still spinning in circles “hoping” for a change. Well said, Ryan!

      [Reply]

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