If you’re looking for information about mlm scams, particularly if you’re looking on the internet, it can be difficult to sort out what is true, what is real and what is made up and what has no validity at all.
MLM Scams, Real Companies and What MLM really is
First of all, let’s debunk a myth. MLM is a real and solid business model. It’s a tiered sales structure where multiple people make commissions. Companies that use this model are not MLM scams. Real estate uses this business model. Insurance uses this business model. The multi-tiered commission structure has been used effectively in those industries for years. Are they MLM scams? Hardly.
Boiled down to its’ essence, MLM is a simply of method of distribution with a particular type of compensation. It has multiple levels. Nothing about MLM scams there. When a company is doing business legitimately, there’s an exchange of value. You trade your hard earned dollars for a product or service. MLM scams? No again. Say you fall in love with a weight loss product or a skin care product. Say your brother-in-law represents a company that markets electricity. If the products are great and you can support someone you know, do you really care what the commission structure is? Do you think about that when you buy groceries? Didn’t think so. Method of distribution – different, but again, nothing to do with MLM scams.
Bernie Madoff is a good example of a pyramid scheme, which people often call MLM scams. He took people’s money and offered nothing in return – no exchange of value. A scam. Big time. MLM scams are similar and they are ‘committed’ by similar people – criminals!
MLM Scams, Criminals and Disreputable People
You find criminal and scammers in every business and industry. Unfortunate, but true. MLM scams are just an easy target. We’ve read pieces by reputable journalists who think because there’s a multiple tiered structure involved they’re looking at MLM scams. NOT!
There are literally thousands of MLM companies that are solid, reputable and are great companies to represent and build an income with. MLM scams are perpetrated by companies that don’t offer anything, and masquerade as real MLM companies but don’t really have a business attached – they’re money games and they’re dead simple to spot.
If you’re looking to see if something falls under the umbrella of MLM scams – ask if there’s a real product or service and if someone gets paid for getting that product to the marketplace or end user. If the answer is yes, you’ve got a real company. If I had a nickel every time someone screamed MLM scams when they didn’t know what they were talking about – well, I’d be rich.
Do your due diligence and you’ll find MLM scams are much rarer than a basic internet search might lead you to believe.
