MLM Scams

MLM, or multi level marketing, has gotten a bad rap of late. As soon as people hear the word MLM, they immediately think "scam" and quite honestly, that isn't the truth. That's not to say that there aren't MLM scams, because there are. However, you need to be able to differentiate between a scam and a legit MLM opportunity. Fortunately, this is very easy to do if you know what to look for. In this article, we're going to explain briefly what MLM is and then point out a legit MLM company and one that is nothing but a scam. Hopefully, after reading this, you'll be able to quickly differentiate between the two.

MLM is a form of business where you recruit people to make sales and to earn an income and then in the process you earn an income from the people that they recruit who make sales for them. Please note the key word here, make sales. This is what differentiates a legit MLM program from one that is nothing more than a pyramid scheme, which is illegal according to federal law. Once you understand how the law works, you'll be able to instantly spot an MLM scam, even though today companies are going to great lengths to conceal these scams.

The best way to explain to you what a legit MLM company is, is to give you a perfect example of one that has stood the test of time. Unless you have been living under a rock, you must have heard of a company called Avon. Avon manufactures beauty products like perfumes and powders. Avon has been around for decades. It is probably one of the biggest MLM companies in the world. Why is it MLM? Because an Avon distributor, aside from selling the products, can get other people to sell these products as well. When they do, they get a portion of each sale from their distributors. This is a perfect example of a legit MLM company. It is one with a real product to sell. Avon is one of the best.

Okay, so then what is an example of a scam MLM company? Well, one of the most recent ones that was just shut down was PAS, of Prosperity Automated System. This company had no product at all. You basically paid $3000 for a web site and then tried to get others to do the same. It was nothing more than a pyramid scheme to get members. There was no product at all. Oh they claimed that you were buying advertising space, which you did with ad packs, but the federal government didn't buy it and eventually shut them down. They are currently in the process of restructuring, but I doubt that they will be able to recover from this.

If this explanation sounds simple, it is. If a company has a product, it is legit. If it doesn't, it isn't. So if you're not sure of whether a company is a legit MLM or not, simply write to them and ask them what the product is that they're selling. If the answer you get sounds fishy or doesn't seem to be a tangible product that you can wrap your hands around, then more likely than not, it's a scam.

MLM has gotten a bad rap because of these scams. Not all of them are.

Just find out what the product is and you'll have it all figured out.

To YOUR Succe