Look Out For These Common Network Marketing Scams
How are you able to tell the difference between a legit MLM opportunity and one of those network marketing scams or pyramid operations everybody has warned you about?
Exactly what's the trick to discovering the distinction? Is there a speedy way for newcomers to sort out the winners from the losers prior to having been taken for an economic ride?
Network Marketing Scams Outlined
There are plenty of different terms for network marketing, including MLM, matrix marketing and dare I state pyramid schemes but they all descend to a business model for offering goods and services with networks of independent suppliers and direct salespeople. Ask anyone what the most prominent network marketing company is and they'll probably say Amway.
Amway has a network of tons of active distributors around the world that produce billions of dollars in sales per year.
Traditionally, Amway has succumbed to the "network marketing cons" label several times. But in every case, including a 1979 FTC investigation in the United States, a 1997 Belgian court action and a 2008 court judgement in the United Kingdom, every fraudulent claim was dismissed.
Fundamentally the FTC discovered that Amway was not guilty of being a pyramid scheme and that the distributors where not breaking any laws through their compensation plans. It is not illegal to recruit people and have them sell your products or services and obtain bonuses in commissions for sales volume.
Network Marketing Scams Exposed
No network marketing company can easily exist without selling products and services made through sales of those products or services. Commissions are generally earned by retailing the product either individually or in bulk.
Protecting yourself Against Network Marketing Scams
Protecting Yourself Against Network Marketing Tricks
The best way to defend yourself against becoming a victim of one of those network marketing scams is to position yourself with a definite company which has survived the test of time and legal examination. As an example, Nexera.com hosts a once a year list of the top twenty-five MLM companies that fall into this criteria:
* They have a legitimate multilevel settlement deal * They've been in business for over a decade * Their site has good Google ranking (PR1 +) * The web site has an Alexa ranking * The provider appears in Google trends
By taking a portion inside an organization that has established a track record of staying in business you reduce your dangers tremendously.
Naturally, much of this standard has nothing in the slightest to do with the lawfulness of any particular company or its marketing model, but if you position yourself with a stable company which has been around more than 10 years and has a well known online presence, you significantly minimize the risk of falling into one or more of these "network marketing scams".
Exactly what's the trick to discovering the distinction? Is there a speedy way for newcomers to sort out the winners from the losers prior to having been taken for an economic ride?
Network Marketing Scams Outlined
There are plenty of different terms for network marketing, including MLM, matrix marketing and dare I state pyramid schemes but they all descend to a business model for offering goods and services with networks of independent suppliers and direct salespeople. Ask anyone what the most prominent network marketing company is and they'll probably say Amway.
Amway has a network of tons of active distributors around the world that produce billions of dollars in sales per year.
Traditionally, Amway has succumbed to the "network marketing cons" label several times. But in every case, including a 1979 FTC investigation in the United States, a 1997 Belgian court action and a 2008 court judgement in the United Kingdom, every fraudulent claim was dismissed.
Fundamentally the FTC discovered that Amway was not guilty of being a pyramid scheme and that the distributors where not breaking any laws through their compensation plans. It is not illegal to recruit people and have them sell your products or services and obtain bonuses in commissions for sales volume.
Network Marketing Scams Exposed
No network marketing company can easily exist without selling products and services made through sales of those products or services. Commissions are generally earned by retailing the product either individually or in bulk.
Protecting yourself Against Network Marketing Scams
Protecting Yourself Against Network Marketing Tricks
The best way to defend yourself against becoming a victim of one of those network marketing scams is to position yourself with a definite company which has survived the test of time and legal examination. As an example, Nexera.com hosts a once a year list of the top twenty-five MLM companies that fall into this criteria:
* They have a legitimate multilevel settlement deal * They've been in business for over a decade * Their site has good Google ranking (PR1 +) * The web site has an Alexa ranking * The provider appears in Google trends
By taking a portion inside an organization that has established a track record of staying in business you reduce your dangers tremendously.
Naturally, much of this standard has nothing in the slightest to do with the lawfulness of any particular company or its marketing model, but if you position yourself with a stable company which has been around more than 10 years and has a well known online presence, you significantly minimize the risk of falling into one or more of these "network marketing scams".
About the Author:
Joe Burke writes under the names jbmuchin and augustus1. His usual topics are MLM, Internet Marketing and Network Marketing. His articles can be found on many article directories.network marketing tips, andnetwork marketing tips
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