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Scams - Multi-Level Marketing Scams

Number of Customer Reviews for Multi-Level Marketing Scams: 0

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OnlyCritiques.com Review:


In multi-level marketing or network marketing plans, the company’s distributors sell the products and services. These marketing plans promise to give you commissions on your sales as well as recruiting other people as distributors, who acts as your “downline”.

Although some multi-level marketing plans are legitimate, yet most others are illegal pyramid schemes. In the illegal pyramid schemes, you get a commission on the number of distributors you recruit for the company.  In this case, most of the products are sold to these distributors and not to the consumers in general.

Multi-level marketing or network marketing is being termed as scam is due to the fact that many of the companies have no real product or service to sell.  The product or service is secondary to the real goal of the network marketing scheme.

By network marketing, we mean marketing to a network. Since for many people their only network is their family and friends, the network marketers tell you to market products to your family and friends. That’s not network marketing by any means as it is aimed at your known circle of people.

Some of the multilevel marketing companies claim that you can get rich quick or get paid for doing nothing. These companies indulge in cheap pyramid schemes.  However, legitimate companies never claim this.  For honest companies, you are required to work and learn, gain knowledge about the business, the Internet, hone your skills, etc.

You can follow these tips to avoid multi-level marketing scams - You should never invest in something, which gives you a return based on other person’s recruitment. This is an indication that you are being associated with a pyramid scheme.

Flashy websites often try to lure innocent people. So, do not get trapped by a multilevel marketing company having a flashy website as the sites can be established quickly and cheaply on the net. These web sites can disappear as quickly as they appear.

Some of the multilevel marketing schemes rely on fake references, who tell you that the plan is earning them a great deal of money with little effort. These people are usually paid by the company to entice you into the program.

In the end, you can finally report the scam to your local Better Business Bureau.


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