MLM Scam – 7 Tips to Avoid a MLM Scam

A big reason many individuals fear MLM is because they believe they are going to get get scam refund. There is lots of information in cyberspace about MLM scam this or MLM scam that. People are afraid of the unknown and since very few know much about MLM, except hearsay, it creates an atmosphere of anxiety and aversion.

The key, as in anything, is to do your homework and educate yourself on the ins and outs of MLM. Then you have the information to make your own educated decision. The following 7 tips will provide some information on how to avoid scams when choosing a MLM.

Research the company management. That’s very easy to do nowadays. Google is an incredible resource. Put the names of the company’s top management into the search engines and see what comes up, some of the results are shocking!

Read the policy and procedures before you join. The policy and procedures, p&p’s, are your contract with the company. Make sure you understand what they are saying. Look for red flags such as, p&p’s not available on the main company website, p&p’s that are over 7 pages long, anything in the p&p that says ongoing or continual, or 30 day termination at the company’s discretion. These are just a few things to watch out for. You don’t want to build a team only to have it ripped out from under you. Sadly, that happens.

Understand the compensation plan. This might seem like a no brainer, but MLM comp plans are not like anything in the real world. Take your time to understand it before you join. Ask questions if you don’t understand. A good question to ask is “How many people will it take in my organization, on the back end, meaning residual, to make 10K per month?” See what they say and ask yourself how doable is that for me?

Good upline support is extremely important to MLM success. You need a team of people that work together and leave their egos at the door. If possible talk to others in their downline and see what they have to say. Many good people enter into MLM being promised support but get none because their upline has moved on to recruit others or they are too busy helping the “superstars”.

Good solid training. Training you can take to the field and use. Not lots of hype and pie in the sky tales of success. Training where you get some basic skills needed to do this business. Of course, you shouldn’t have to pay for it!

Avoid lead generation systems that rely on friend and family. Systems like these make it extremely difficult for success in MLM. 92% of the population doesn’t like to sell or be sold; I’d say the number is even higher when you are talking about friends and family. If the company your thinking about joining employs this type of lead generation system, tie up your shoelaces and run for the door!

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