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Tip of the Day

Fraud Tip of the Day - July 5

Multi-Level Marketing Tips - Warning signs and red flags that could alert you to a MLM scam

Multi level marketing is a method businesses use to market their products directly to consumers through relationship and direct selling. It works by having distributors represent the parent company. Distributors are generally non salaried and make their money by commission off sales made by their own independent organization. These organizations are made by either building up their own customer base who purchase directly from the parent company or by recruiting other sales people who perform all the leg work for the distributor. A distributor can make money by selling the parent company's products wholesale to their own organization.

The description offered above for multi level marketing is almost indistinguishable from illegitimate pyramid or ponzi schemes. It can be very difficult to tell between legitimate MLM and scams. If you're considering becoming a distributor or a link in a distribution organization, we suggest bearing in mind the following:

Multi-Level Marketing Tips:

When contemplating a new business venture, please keep in mind that many more businesses fail than succeed. A key question to ask yourself is, "Can I really afford to lose the money I'll be investing in this venture?" If after taking everything above into consideration, you conclude that MLM is for you, please keep the following tips in mind: