The vast majority of MLM companies and business builders are completely legitimate, honest hard working folks who do not perpetrate MLM Report Scam and get your money back. However, there are MLM scams just like there are scams in every other business endeavor. You must do these things to make sure you are not a victim of an MLM scam. There are various forms of MLM Scams out there but the most difficult to catch is the person who is selling illegitimate services to other MLMers. For example, there are many who claim you can become rich or that they will build your downline for you, only if you buy their service from them first.
You must always do proper research in order to avoid MLM scams. Anything that claims to earn you instant cash or an instant downline is almost always fake. The only way to create a great income and the lifestyle you want is to work at it, plain and simple.
With the rise in popularity of the Internet over the last decade, there also has been a rise in MLM scams. More and more people are promising you instant network marketing riches and instant downlines only if you buy their new product. However, again it all boils down to simple hard work. A ponzi scheme is where you only get paid if you recruit new members into your organization. The older members get paid off of the newer ones.
A pyramid scheme is where the entire focus of the organization is on recruiting new members into it. There is no legitimate product being sold, other than the business opportunity. Its referred to as a pyramid because a person’s organization tends to look like a pyramid as that person signs up multiple people….and they sign-up multiple people. This progresses throughout the organization without any real product being sold.
When trying to avoid an MLM scam, look at if the company have a product, or are they just a scheme to sign up new recruits. Often if there is no new product, older recruits get paid only through signing up new recruits. It then perpetuates itself as more and more people are recruited. So, while the vast majority of people in network marketing are not perpetrating MLM scams, one need to always be on the look out and do proper research before you get involved in a business opportunity.