MLM is a reliable business opportunity and a legitimate business model. However, due to some MLM scams, the networking industry got tainted with a bad reputation. If only people were given the opportunity to choose wisely and know how to sort the legitimate MLM Company’s from the possible scams, doors to make good money would have opened for them. MLM or multi level marketing is really a means to distribute products and at services. It is a sub category of network marketing wherein representatives work to build a down-line while selling unique products or services. It is actually a very good avenue to start a small business.
The most infamous MLM scam has gone on since the 1970’s. It is called the pyramid scheme. This is an illegal operation that basically offers huge amounts of profits for every investment made to their program. The most important thing to look out for is if they push for the actual sale of products or services to sell. In the pyramid scheme, they do not. The problem with this scheme is that commissions are paid as new recruits or down-lines come in. However, when the last person fails to recruit anybody, everything stops and crumbles down to the ground. This MLM scam that lures people in by presenting it as a small business opportunity with huge potential involves money paid in without seeing money for the products and or services.
Read more about Avoid These Top Five MLM Scams
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