Knowhow-Now Article

How to Avoid the Worst Network Marketing Scams

By Andrew Wilson


These days network marketing scams are becoming more and more prevalent as multi-level marketing companies gain popularity. With today’s turbulent economy permanent employment is a thing of the past as more people realize the value of augmenting their income, if not totally replacing it with a more viable option such as MLM.

The thing is as MLM companies start sprouting like mushrooms it’s becoming more difficult to determine the legitimate ones from fraudulent scams. So before you even think about joining this business venture practice prudence and vigilance so your hard earned money will not go down the drain.

Practice Vigilance

It’s so easy to do this now because you can conduct a thorough background check of the company with the use of the internet. Be aware of network marketers who are using dirty tactics like negative advertising in order to drive you away from legitimate marketing opportunities so they can woo you into investing in their own fraudulent ventures. Do not get easily swayed by this. Check and double-check the validity of the information being given to you. Join forums; ask friends and business associates for feedback who’ve had hands-on experience with the said companies before you make any decisions.

Choose a Reputable MLM Company

Know their history. How long have they’ve been in the business? How much of their revenues come from the sale of their products and services? In fact, find out what they are really selling and offering to the buying public. In the end, nothing beats good quality products or services following only the highest standards. Do not go for companies making majority of their revenues by selling websites or marketing tools. Next, find out who are the people behind the business and what were they doing before they ventured into MLM. Do they have the experience and necessary skills to run a company such as this? Check out their financial situation. Are they really making money or are secretly buried in debt as evidenced by previous recruits who quit because they lost a lot of money upon entering?

The Contract of Agreement

Do you see any loopholes? Is it fair to both parties? Do they hold equal share of the responsibility or are they mainly placed on the distributor without the management being liable for anything? Are the rules fixed or can they alter them for their own convenience? Can you really generate a substantial income from this?

Are The Products Viable

Can they stand on their own? Is there a demand for what the products or services they are promoting? Are they patented or unique in any way or is every Tom, Dick, and Harry selling them already? What is the company’s edge? What are they offering that cannot be found in other MLM business ventures? Put yourself in the consumers’ shoe and find out if you will buy the products yourself for the suggested retail price? Do they make sense? Alternatively, are you being ripped off?

network marketing

Watch Out for the Pyramid

Thousands of people have lost hundreds of thousands, even millions of dollars because of these fraudulent tactics, so don’t fall victim into one of these vicious network marketing scams. Don’t be carried away by their flashy advertisements and too good to be true testimonials. Are you really being paid for the products and services you sell or by merely recruiting distributors? Stay away from the latter because it is clearly a pyramiding scam. There is nothing wrong in wanting to make money in a fast and easy way. The thing is, making legitimate earnings cannot be hurried, nor is it easy. You need to be willing to work hard and exert some effort before you receive the pay offs. Most importantly, be careful in your dealings and keep yourself well informed to protect yourself from the worst network marketing scams.


Check and double-check the validity of the information being given to you.

by Andrew Wilson

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