To avoid getting scammed, avoid Multi Level Marketing businesses that…

promise outrageous income benefits. Scammers often make big promises to attract people.  An MLM company may claim to help you earn huge profit in weeks without doing much work.  If an opportunity seems too good to be real, then most likely it is.

depend solely on new recruits. If you are required to recruit new members in order earn money, then that is not a real business at all.  Avoid MLM businesses that depend entirely on membership fees or investment of new members.

offers unreasonably expensive products. Yes, selling real products is one of the signs of a legitimate home business.  However, if the products are way too expensive, you may find it very difficult to sell them.  Obviously, without sales, you will not earn a cent.

do not provide team support. It is crucial to choose a networking company that offers reliable support for its members.  Be sure that you will not be left on your own after signing up for the business.

promise easy money. Fake MLM businesses will promise you BIG cash without doing any work at all.  Don’t be fooled by this trick!  A real business always involves a lot of hard work, no matter what type of business it is.

urge you to invest your money NOW OR NEVER. If you are encouraged to invest a significant amount of money in the business with the promise that you can easily double or even triple the amount you invested, chances are you are dealing with scammers.  A legitimate MLM business is one that has been around for a considerable time and remains stable because it is an honest business.

Many of these opportunities are MLM (network marketing) I have very limited experience with these programs and I advise them to use their best judgment when choosing a MLM. I have always felt that you need to be a really personable person to make MLM work for you. You need to be able to motive not just yourself, but a whole team of people that will be working under you. That to me seems to be the #1 reason people I know who have gotten into a MLM program either drop out or simply don’t make any money. Its hard enough to keep YOURSELF on track let alone a large group of people.

I have seen it done though. I had a friend named Renee who was in MLM all her life (she was in her late 50′s when we met). Renee had built huge downlines in her time, and had experienced the benefits of working with not just a great group of people but the financial benefits of having nearly 300 people working with her. Renee was incredibly organized, very personable, and w/ more than 30 years of being in different programs incredibly knowledgeable about understanding network marketing structures and payouts. Her main problem seemed to be that she would join programs that just didn’t last. After a year or 2 they would close abruptly.

I would ask her why not start off with companies that have a proven track record and the answer she gave me was that the income potential was 10x better getting in on a new program first, then joining an older program and being way down the list.

THAT’S why I never got involved with MLM. No matter how many times they tell you that you make money selling wonderful products, the bottom line always seems to be getting people signed up under you.

I did some research online for my neighbors and here are some tips I saw touted over and over on MLM sites.

1. Avoid plans that seem to pay mostly for bringing new people into the fold. It could be an illegal pyramid scheme.
2. Avoid programs that say you will make lots of money thru the expansion of your downline more so then having your current downline out selling product .. again this can be a sign of a pyramid scheme.
3. avoid “Miracle” products. If there claims are just outrageous, do you want to be the one to sell someone sick with high blood pressure or some terrible health condition snake oil?
4. Avoid programs that make you buy expensive inventory – while its a nice motivator that every 30 days you will have a new shipment of stuff to sell so you better not delay or your will find your garage full of product. It can get so expensive that people who haven’t quite hit their stride drop out just to get out of the auto ship.
5. Try not to sign up the first night you hear about the program. Don’t buy into the HYPE! A good rule of thumb is to not take your credit card to these meetings. After the meeting, hit the internet and do your research.

   You will find good and bad reviews. You will have other distributors flashing huge checks and encouraging you, you will find disillusioned people who tried the program (or maybe brought and tried to return after the 30 day guarantee and are bitter over losing some money) that will scream scam. Its up to you to shift through it all and make a decision.

6. Check with your local business organizations like the BBB and Chamber of Commerce. Some MLM’s are too small to show up in their records but its better to be safe and check things out thoroughly before committing your hard earned cash.
7. If you are promised outrageous amounts of money in a short time remember the old saying, “Its simply too good to be true”.

If you have done your homework, don’t be afraid to move forward. If you put down the money to join the program, make sure you have a plan of action so that you can start building your business right away.