Most MLM programs are legitimate businesses, however consumers must be aware of MLM scams. A true MLM program will sell products to the general public without requiring them to pay anything extra or any hidden costs. They will not force consumers to join the MLM system to be a distributor themselves. These types of systems pay commissions to distributors based on actual product sales, not for recruiting. However, there is a danger that any program that concentrates more on new members rather than product sales could be a MLM scam.
An example of a MLM scams is an illegal pyramid scheme. This is where a company promises huge profits from investments into their program. The money is actually made from drawing new people into the scheme rather than actual retail sales of real products. Many pyramid schemes pretend to sell actual products, they actually don't. A signal that a program is such a MLM scam is when you never see actual products. Products consistently on backorder or orders that never arrive are also signs of a scam.
Another MLM scam is called a Ponzi scheme. This is very similar to a pyramid scheme, however the main difference is in a Ponzi scheme there is not an actual product to begin with. Also, no commission is paid to recruit new members. The operators make their money off the sting by promising huge, quick returns from an investment. The money collected from new members is used to pay off other members that have been in the program longer. They are given a small return compared to the huge promises. The largest part of the money goes into the promoter's pocket.
Be on the lookout for these signs of MLM Scams
-If the plan is more interested in drawing new members and offers you high rewards for such be suspicious. Why would you want more competition?
-Watch out for companies demanding that you invest in a large amount in inventories before starting your business. You are probably the only customer they care about.
-If a company offers outrageous claims about miracle products, be skeptical. Most medical advances have come about through years of study, not overnight successes.
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Los Angeles Times - Jae C. Hong / AP FLAG-WAVER: Sen. Barack Obama and daughter Sasha are onlookers at an Independence Day parade in Butte, Mont. Tired of having his patriotism questioned, the Democratic candidate has made Old Glory a major visual element of his campaign. In Montana, Obama Tries to Rally Support on Iraq In Montana on the Fourth, a Barometer of Obama's Chances Publ.Date : Sat, 05 Jul 2008 06:25:05 GMT 2 fires still raging along Calif.'s Central Coast - The Associated Press
The Associated Press - BIG SUR, Calif. (AP) - Cool, damp weather early Saturday helped crews gain ground on the huge wildfire that wiped out this coastal retreat's holiday tourist trade, allowing some personnel and gear to be shifted to a growing blaze farther south Nearly ... Video: Wind Keeps California Wildfires Raging Gov. sending in troops to fight Cal wildfires Publ.Date : Sat, 05 Jul 2008 18:01:11 GMT African Union Weakened by Summit Inaction on Zimbabwe - Voice of America
Voice of America - By Peter Heinlein The African Union's reputation suffered a setback during the past week when its leaders faltered in the face of Robert Mugabe's blunt challenge to democratic norms in Zimbabwe. Q&A: Zimbabwe's disputed election Recognise me as Zimbabwe president or no talks: Mugabe Publ.Date : Fri, 04 Jul 2008 18:02:07 GMT European Bonds Post Fourth Weekly Gain on Interest Rate Outlook - Bloomberg Bloomberg - By Anchalee Worrachate July 5 (Bloomberg) -- European two-year government notes rose for a fourth week, the longest winning streak since February, as traders pared bets policy makers will lift interest rates again this year after raising them two days ... Fighting Inflation, Europeans Raise Rate Bernanke's French Lesson Publ.Date : Sat, 05 Jul 2008 07:22:39 GMT Target: Barack Obama. Strategy: What Day Is It? - New York Times
New York Times - By PATRICK HEALY Despite a three-month head start, Senator John McCain has struggled to solidify lines of attack against Senator Barack Obama for the general election, Republican operatives say and some of his own advisers acknowledge, running into ... US candidates practise their U-turns Obama Predicts Political ‘Realignment,’ Tries to Put Montana in Play Publ.Date : Fri, 04 Jul 2008 23:37:50 GMT Study suggests serotonin plays a role in SIDS - Los Angeles Times
Los Angeles Times - Mice who overproduced the brain chemical showed symptoms similar to those of the infant syndrome before they died. By Wendy Hansen, Los Angeles Times Staff Writer Mice genetically engineered to overproduce the brain chemical serotonin died at an early ... SIDS Linked to Brain Chemical Dysfunction Chance discovery points to crib death cause Publ.Date : Sat, 05 Jul 2008 07:03:56 GMT Obama and Clinton, Together Again - Washington Post
Washington Post - By Jonathan Weisman BUTTE, Mont. -- Putting their money where their mouths are, Barack Obama and Hillary Rodham Clinton will appear together three times over two days next week, raising money for each other and further advancing the Democratic cause of ... Obama and Clinton Will Raise Funds Together Next Week in NYC Obama, Clinton to hold joint fundraisers in NY Publ.Date : Sat, 05 Jul 2008 17:26:50 GMT Web Site Traffic |
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