There are a lot of legitimate MLMs out there, but there are a tremendous number of scams too. If you decide to start your own business as a part of an MLM, you need to make sure they are legitimate. Familiar names such as Tupperware, Avon and Mary Kay are easily seen as legitimate, but what about the more mysterious ones?
Some will refer you to a site that tells you all about their wonderful opportunity, but not give you any details about what you will be selling, or even claim you don’t have to sell anything. Be wary in these cases. Rather than a legitimate MLM, you may have stumbled across a pyramid scheme. Pyramid schemes earn money primarily through recruiting, not through sales to customers. They may also require you to purchase a certain amount every month or not earn your commissions. This is known as inventory loading and is illegal. See this very useful article on the FTC website for more information.
The FTC also offers some excellent advice on selecting a franchise or business opportunity, which applies to both online and offline opportunities.
Home Business Scams to Avoid » Blog Archive » Look out for scams
keva on March 28th, 2011 at 4:37 pm
alex varonos is running staropoly is a big scam using celebrities kelsey grammer and corbin bleu to lure peopel into pay for site mlm and alex varonos never pay employee and never pay old investor off when he tell peopel he have 1 million in investment from kelsey grammer and say he big man have jet plane he lie no jet plane anywhere. this is big con game and peopel shuld beware this very bad guy.