How to Avoid MLM Scams and Rip-Offs - By: Chris Robertson

Though many MLMs (multi-level marketing businesses) are legitimate, some are outright scams and rip-offs. If you're seeking an MLM opportunity to earn an income, you can recognize the scams right from the start if you know how. Being able to recognize and avoid the scams will not only save you money, but also plenty of heartaches on your home business journey.

Know the Methods

MLM business has come a long way in the past decade, and its image as well as its methods has changed a good bit. Internet technology has allowed thousands of MLM operations to move their products, services and selling force to the Web, while profiting from the vast online market. Unfortunately, this has also opened the floodgates for hundreds of MLM scammers to take advantage of Internet users.

MLM scams online can often be recognized by their methods. They are usually vague in their offer, and may even ask for money before giving you the details of their business. Their network marketing campaign may sound something like this, "Join now to discover the secrets of making money. Potentially earn $10,000 during your first month!" You should never buy into an MLM program blindly - just because someone states that you'll earn a lot of money.

MLM home business programs that focus more on signing up new potential salespeople instead of offering a product or service of value are likely scams or pyramids. Pyramid schemes are those business opportunities that harp on recruiting. The more people you recruit to be "just like you" - the more money you will make. There's never a focus on true value of the product or service being offered, and some may blatantly refuse to offer a product at all (which is an illegal practice).

Of course, many MLM scammers will state that their opportunity is a product within itself...you'll receive "training" on how to make the program work. This "training" simply teaches you how to recruit other people in the same manner you were recruited. Oh and by the way, there's a $250 to $1,000 fee (or more) to become a recruiter so you can earn the big bucks!

What many MLM pyramid companies don't tell you is that most recruiters fail and give up. But this doesn't hurt those at the top of the pyramid because there are always other home business seekers who will fall for the pitch. Using a website and e-mail, a pyramid company can potentially have hundreds or thousands of new MLM leads per month. Unfortunately, the Web is a cheap, easy way to market MLM scams.

Find Legitimate MLM Opportunities

If you're seeking a legitimate MLM home business opportunity, beware of companies such as these, and avoid companies that make outrageous claims about their methods or their products. Also be wary of so-called "miracle products" and the companies that push them. Before signing on to sell a product, do some research to find true studies and research on the product. Ask around in discussion forums to find others who either use or sell the product.

Seek out MLM opportunities that are legitimate by reading the presentation carefully, including the fine print. If a fee is required, be sure you know exactly what you're getting up front and why there's a fee to begin with. True MLMs usually involve affiliate marketing and network marketing for a product or service of real value. This doesn't mean you won't recruit others, but it does mean you will have something tangible and of value to present to any potential new salesperson. If you've always wanted to work from home, true MLM businesses can help make your dream come true!

About the Author

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies. For tips/information, click here: MLM
Visit Majon's Multi-level directory.

Article Directory Source: http://www.articlerich.com/profile/Chris-Robertson/5864

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