MLM scams are easy to avoid if you are a little wary about the company and people you are associated with. Below are a few ways to help you avoid MLM or Multi Level Marketing scams:
1. Research about the company: Foremost thing to be done. Google or Bing is a good source to search online. If you don’t find much information about the company, ask about it in financial forums.
2. Read the fine print: This is a golden rule with every other financial scheme you join. Read all the terms and conditions, p&p’s etc. If you don’t find the TOS in the main website or if it runs to 15 pages, look at the whole thing with skepticism.
3. Know thoroughly about the compensation: Yes, important. MLM schemes are often very confusing. Yet, there are people to explain them to you. However, the best way is to approach a company representative and understand them yourself.
4. Check if there is enough support: Find out if there are representatives out there to support your initiatives. If it is a reputed MLM company, it should have trainers toÂ train you in the business. This training should be authentic, not the we-make-you-rich-in-2-weeks kind.
5. Don’t take up dubious systems: Don’t take up systems that rely on selling to friends and family. It is difficult to sell to people in MLM. Research says that about 92% of the population doesn’t sell or like to be sold. The stakes are even high if it is your friends and family. So, never take any chances with such dubious schemes.