How can you notice the difference between a legitimate MLM opportunity and one of those network marketing scams or pyramid schemes everybody has warned you about?
How do you know the difference between a firm that is worth your time and one that isn’t? Let’s take a look at a few of the highest rates MLM programs too because these scams.
Network Marketing Scams Defined
MLM compensation plans, a. k. A “network” or “matrix” marketing, are a strategy of selling goods or services thru a network of independent contractor, distributors or direct sellers. Amway is one of the largest, most well-known network marketing firms. They have millions of active distributors worldwide and produce yearly sales in the billions.
Back in 1979 “network marketing” was put on the stand when Amway underwent an FTC investigation in the United States. Based on the 2008 court judgement in the United Kingdom, every single fraudulent claim was dismissed.
In short, the FTC found Amway not guilty of being an illegal pyramid scheme or just another one of those network marketing stings because “distributors aren’t paid to sign up people and have to sell products to get bonus checks, and the company was committed to buying back its distributors ‘ inventory overstock.
How to Spot Network Marketing Scams
In a bonafide network marketing opportunity, commissions are earned only on sales of the company’s products or services. Commissions can be paid on both wholesale and retail sales. But no money could be earned from hiring other people as a distributor. Put simply, you can’t make a cent from sign up fees. If a company pays out on a sign up fee, probabilities are it will fall into that feared network marketing scams class as it then becomes an illegal pyramid or ponzi scheme.
Safeguarding Yourself Against Network Marketing Tricks
Every year there are countless hundreds of new network marketing corporations launched worldwide. Like most small businesses, a lot of them will not survive a complete year in business. Others will drop by the end of year 2 and only a few will still be around by the end of year five.
Protecting yourself against one of these fraudulent network marketing scams might be done by getting behind a business that has a track record and is immune to legal ramifications from their compensation strategy. You’ll be able to checkout online for a list with the leading 25 MLM organizations that qualify:
* They have a legitimate multilevel compensation deal
* They have been in business for over a decade
* Their website has good Google positioning (PR1 +)
* The website has an Alexa ranking
* The business appears in Google trends
By taking part in a business that has established a track record of staying in business you decrease your risks significantly.
Nevertheless, even the criteria listed above has nothing to complete using the probable achievement you’ll have in such a organization. So now you understand the traps, and are much better equipped not to fall in to the dreaded “network marketing scam” category.
To see the type of training that I get and share with my team to help them with their network marketing business
If you enjoyed this post on what to consider when it comes to Network marketing scams, I would greatly appreciate you sharing it with others on Google+ and Facebook.
Incoming search terms:
- modere scam
- mlm scams list
- network marketing scams
- network marketing scams list
- mlm scams
- Network Marketing Scam
- is network marketing a scam
- multi level marketing scams list
- is modere a scam
- marketing scams
Latest posts by robert strong (see all)
- Tips To Create A Powerful Facebook Marketing Strategy - June 26, 2014
- Simple Facebook PPC Strategies To Start Generating Leads Today! - January 14, 2014
- SEO In 2014: Google-Proof Your Blog For 2014 - January 1, 2014
- Tips To Finding Online Work - December 31, 2013
- Hobbies That Make Money For Extra Income - December 29, 2013