Beware of MLM Scams!

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