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How to spot an MLM scam?

November 19, 2018
Many people are interested in joining MLM (multi-level marketing) because of the lucrative income opportunity. The MLM industry has been around for many decades and was able to help a lot of people in achieving time and financial freedom. With the popularity of MLM comes groups that take advantage of it. These are people who put up a business and present to the public as a legit MLM business when in fact their main goal is to scam people. Many have been a victim of this fraud and it has put the MLM industry in a bad light.

For you to get the most of what the MLM business has to offer, you need to make sure you join a legit company. You can say that an MLM opportunity is a scam through the following:
  • Recruit more, sell less – If the company stresses the importance of recruiting more than selling, then that is a red flag. A genuine MLM company makes money by selling products and services. Recruitment is a part of the process but it should not be the main goal. If you are recruited to recruit more people of your own, then that is a warning sign.
  • Poor training and support – A genuine MLM business takes time to train its network marketers. It should conduct training and workshop regularly to make sure that its marketers are equipped with the advanced marketing techniques. Support should also be there.
  • Pressured to pay more – If the company asks you to pay more in exchange for training and support, then that should be a red flag. If you are going to join an MLM business, there is definitely an enrolment fee. It is like starting your own business but with MLM, the capital is way too low. After paying the enrolment fee, training follows. There are free training and there are paid training. If the company pressures you to go to the paid training and you feel like the company treats you like a milking cow, then, by all means, that company is a scam.
One of the legit MLM companies is ACN Inc. It stands for American Communications Network; a company that started in Concord, North Carolina in 1993. It has grown bigger and bigger as time passes by. Today, it operates in more than 25 countries in various parts of the world. One of the factors that contributed to the success of ACN is its products and services. They include local and long distance telephone service, gas and electricity, satellite television, home security, and wireless connectivity, to name a few.

To be a part of ACN, you need to pay an enrolment fee of $499. Training and support will be provided. Some training is free while others are paid, but the company will never ever pressure you to come to the paid events. Support is readily available too. Your upline will be there to train and support you every step of the way.