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samda
Forums Member
Joined: 10 Oct 2007
Posts: 550
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#1 · Posted: 23 Jul 2008 11:37
Dear Community members
Most of the MLM schemes that i see today are turning out to be a scam. So be careful about this issue.
Last week one of my friend came across an MLM company. He went to the meeting and he was priasing the firm. (They gave a lot of hypes it seems).
He was about to invest a large amount despite my advise. But luckily the firm was closed and the owners were arrested just two days ago. He thanked me. So THINK TWICE BEFORE YOU JOIN A MLM / PYRAMID money making firms.
Most of them are scams and eat away your hard earned money....
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mountainmom5
Joined: 30 Aug 2007
Posts: 3044
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#2 · Posted: 23 Jul 2008 20:23
I agree - when I was doing my research for an mlm company (I knew there are legit ones - they have always been around)... I didn't know there were so many companies to dig through!
I narrowed my search down real fast when I started asking a few simple questions...
1) Can I see the policies and procedures (many reps didn't even know where they were or IF they had any!)
Those p&p are quite enlightening - I have a friend that got terminated from his company after he had built his business and was making a hundred grand a month, another guy was making about thirty grand and lost his check overnight...all because of a small clause in the policies that gave the company the right to do so.
So, you bet, I wanted to see what it said!
2) I like the 10k question the best - How many active people are needed in your downline to have a walk away check of ten thousand a month...?
Most had no idea and of the ones that had a slight idea, it varied anywhere from about 500 to over 20,000..
I know that it takes some effort and time to build it up to 10k a month but I want to know what it takes at least. If I have no idea what my goal is - how can I expect to hit it??
Anyways, it helped me a lot to wade thru the scams that way - it takes some time but it is worth it.
Viola
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getagrip
Joined: 20 Feb 2006
Posts: 2079
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#3 · Posted: 23 Jul 2008 20:30
samueldarwin: He was about to invest a large amount despite my advise. But luckily the firm was closed and the owners were arrested just two days ago. He thanked me. So THINK TWICE BEFORE YOU JOIN A MLM / PYRAMID money making firms.
That's very good that they were caught. A lot of MLM companies don't make their money from product sales, but from sign up fees, which makes them pyramid scams.
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PMHayes
Forums Member
Joined: 23 Apr 2008
Posts: 129
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#4 · Posted: 24 Jul 2008 02:16
samueldarwin: MLM / PYRAMID money making firms
MLM and pyramid are NOT one and the same.
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PMHayes
Forums Member
Joined: 23 Apr 2008
Posts: 129
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#5 · Posted: 24 Jul 2008 02:19
To further differentiate pyramids from MLM, pyramids are illegal and MLM's are not. MLM is a legitimate business model. It sells a product to a comsumer and the distributor makes a profit selling the product. The distributor also can earn a percentage of business done by people they bring in as distributors under them. This is not a scam, it's brilliant!
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luvtravel
Forums Member
Joined: 11 Dec 2006
Posts: 811
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#6 · Posted: 24 Jul 2008 16:10
I can tell you I joined a travel MLM and never got commissions for 3 sales I made, be careful!
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itsjoanne
Forums Member
Joined: 9 Apr 2007
Posts: 23
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#7 · Posted: 3 Sep 2008 13:12
PM Hayes is right. There is a big difference between multi level marketing, or network marketing ,which is perfectly legitimate and legal, and pyramids or ponzis which are NOT legal.
An MLM has a product or service. People do not get paid simply for enrolling someone, there must be a product purchase for commission to be paid.
Otherwise, its NOT an MLM.
Joanne
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pcwork
Forums Member
Joined: 12 Aug 2006
Posts: 1650
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#8 · Posted: 5 Sep 2008 22:41
luvtravel: I can tell you I joined a travel MLM and never got commissions for 3 sales I made, be careful!
Can you name the travel MLM?
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Homejames
Forums Member
Joined: 8 Aug 2008
Posts: 5
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#9 · Posted: 6 Sep 2008 06:44
itsjoanne: ......People do not get paid simply for enrolling someone, there must be a product purchase for commission to be paid.
Top Tier Direct Sales Companies who use NetworkMarketing,attract the BEST Entrepreneurs, who already understand the concept of "Getting Something" for your $/�/Euro.
Their advertising is in the Form of Shared Knowledge and a REAL Opportunity that is Useful.
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GavinStephenson
Forums Member
Joined: 24 Apr 2008
Posts: 95
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#10 · Posted: 6 Sep 2008 17:34
Always look for good review and testemonials before joining any MLM. Scams are there but I hardly see em because they are normally the ones where people are spamming you with emails
I prefer to have people chase me its a just better method of marketing
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marketingcoach
Forums Member
Joined: 27 Aug 2008
Posts: 3
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#11 · Posted: 10 Sep 2008 21:33
Age of the MLM is a tell tale sign.
There are only about 5 MLM's out there that have been around for more than 20 years. My primary MLM just had a 25 year anniversary.
In order for an MLM to be successful for that long, all aspects of that company have to be on track. Management, products, services etc.
I wouldn't even consider joining an MLM unless its been around for at least 5 years, but thats just me.
Most seem to fail right around the 2 year point. So don't get caught up in the hype.
It would be a sad day if you built up an impressive organization, were making 5k/month and one morning you wake up and learn that your MLM is gone. I'd rather not take that gamble, my time is worth too much.
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Smart25
Forums Member
Joined: 29 Jul 2008
Posts: 13
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#12 · Posted: 13 Sep 2008 03:09
Hello all,
Yes, there are too many scams out there. I used to fall for those at the beggining of my network marketing career. You have to become a student of this industry in order to better spot a scam.
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