Multilevel Marketing (MLM)

Multilevel Marketing (MLM)

Many of you have probably heard of network marketing or multi-level marketing (aka, MLM). There are many legitimate MLM and network marketing opportunities (both online and off) that allow you to work as an independent agent brokering or selling someone else’s products or services. The problem with MLM is well-documented, however. Some networking marketing or MLM opportunities run afoul by placing the recruitment of other “down line” sales reps at the very top of their priority list rather than the legitimate marketing of their product. Down line recruitment is a cornerstone concept of MLM but should be more of an organically grown outcome that results from the sales of a great product. People buy the product, they love it and end up wanting to share their passion and enthusiasm for the product by selling it themselves. When down line recruitment is the primary focus of any MLM enterprise, you should approach it with extreme caution. There are a lot of tricky pyramid schemes disguised as legitimate MLM’s which are considered fraudulent in the eyes of the Federal Trade Commission.

If you are involved in what the FTC considers a fraudulent MLM pyramid scheme, losing all of your MLM investment might just be the least of your worries.
Again, it may not be totally obvious that any particular MLM enterprise is a scam. Some other tips for spotting not-so-legitimate opportunities include taking a look at the amount of money the company guarantees to pay you.

If you’re still unsure about the legitimacy of any of these aforementioned enterprises, at the very least you should check with your local Better Business Bureau for complaints and any other publicly reported information about the company that you are considering doing business with.

http://sellitontheweb.com/blog/top-internet-business-scams-to-watch-out-for/