Avoid Network Marketing (Multilevel Marketing) Scams


It is called network marketing or multilevel marketing or referral marketing. It is a marketing strategy in which the sales force is compensated not only for sales they generate, but for the sales of the other sales people that they recruit to their team. Mainly, the selling method is by contact referral or word of mouth marketing. As long as the new economy of wealth creation through information, network marketing is seen as the business of the 21st century hence its popularity and notoriety in increasing rate.

With the onslaught in recent times led by invisible exploiters who take advantage of the quick-money-greedy-fellows that ignorantly chose to play a casino than real time investment.

Over the internet, you would definitely have read or stumbled upon one form of pyramid scheme or glorified chain network that assume to be Multilevel Marketing Company. If you don’t do your research well, you might end up as the next victim of circumstance.

I have listened to scores of charlatans parading themselves in this industry and I have been scammed once owing to my greed in the first instant. With pain in my heart I want to raise the red flag to prevent innocent unsuspecting wanna-be rich quick fellows to before warned and before armed.

Hitherto, the internet as a source of information could not wet my appetite enough hence I wrote this blog to serve my audience so they can spot the blinds.

Let us analyze the fact, MLM has been around for a long time. I don’t mean affiliate marketing or pyramid scheme. However, because of its propensity it has been hijacked by pirates who lure individuals with the name and luxury of MLM in the fast lane. I believe it is a network marketing era. These days especially in developing countries and struggling economies of the world, most people are looking for opportunities and they fall prey too easily, because in anyways the future is still network marketing as more and more companies take to performance based model to sell their products.

I was able to nail down some synonyms that suit this crazy vendors and their pseudo scheme of milking cow. Please be informed and watch out for this guy’s wherever you see them run for your life…

Ghost MLM – MLM without a product, disguised pyramid scheme.

Bulldozer MLM – Desperate for recruitment with recruitment pay off on new distributors. Also pressures to buy in or stock inventory.

Fantastic MLM – Too good to be true. The compensation and the product are deceptive.

Glorified MLM – Mostly work from home internet tramps. No training, no policy, no tools, no support system to build your business. One clicks to ruin.

Marshal MLM – First come first serve basis. The early birds catches warm after all so it is usually a flash in the pan activity and they fade off.



All the five listed above are ‘authentic’ scams and they make up a goddam number of the large thriving Direct Selling Industry. Also they can easily be identified as they enter the market in first few years of operations because three things can happen to them. 1. They are either changing too rapidly. 2.  Blacklisted. 3. Die naturally.

Understanding pyramid schemes

A pyramid scheme is usually a money game normally there is no product involved at all, just money changing hands. If it has a product it is just to disguise he money game. It is a get rich quick scheme.

Illegal pyramid schemes have no business in real commerce only but a money game. No products involved just money changing hands. People just invest money based on the promise that other people will also invest that will return back to them and somehow with interest. For someone to make money in this system someone else has to lose. It is a win-lose scheme. People take advantage of ignorant people. In the end those seeking help always out do the helpers and the system crashes.

The legal talk about it

The U.S. Federal Trade Commission (FTC) States: “Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They are actually illegal pyramid schemes.


The real MLM industry

Network marketing is a real business that provides people with legitimate products that are in demand at a reasonable price. It’s a win-win business and based on performance. The financial benefit in network marketing is usually attained through dedication in building the organisation that sells real products and services by all the stakeholders through absolute integrity and core principles.

It is serious business for serious people with a template to follow for your own success. Just follow the simple system that a good company provides. It is not a get rich quick scheme but a get wealthy one.

Network marketing is a legitimate business. It is about information and education which entails understanding what it is and what it isn’t. The industry is worth over $200trillion approximately.

Things to look out for before saying yes to an MLM company

Find out the years of existence of the company and about their operation. Are they ethical? Go for what lasts. The real network marketing as old as it might have lived would have a compensation plan that favours old time partners and new recruit. The timing does not count.

Intellectual property – It is about integrity and goodwill. How ethical is the company and their products? Do they manufacture their own products and licensed by the regulatory bodies in a particular jurisdiction of high authority?


The organisation structure and leadership. Structure of the company is very important area of exposure you must learn about. Capital base structure and management team. Understand to an extent the key leadership and followership structure. Who is following who?

The products and services valuation is a major lesson. Avoid propaganda and get to know the quality and authenticity of use of the products. Legality of proposition and claims is one of the traps associated with this industry and as a result in organized society defaulting companies are sanctioned heavily for ultimate closure. This is second to defrauding people.

A Physical address location. Irrespective of internet versatility, a supply chain management is integral in MLM industry making it necessary that a physical contact office is a relevant criteria to exist.

Capital base and compensation plan. Direct Selling industry employs one of the highest and pays the highest too through compensation for use and distribution of their products. Is the company capitalized enough to go through recession buffer? What is their asset base? Is the compensation plan a shadow of reality?

Work ethics. It is a scam when you hear join and become rich in an unrealistic timeline and most importantly when they say you don’t have to work. This is the trap that people fall for when they believe in deception. Ladies and gentlemen, you have to build the business (That is work but made easy down the line).


Exposed Secret

Be wary about MLM but don’t sell your dream short by settling for less. If there are more millionaires today it is because of this industry. It is not for hustlers, it is a noble profession. The profession is about education and information. It is a career not a no-brainer. No losers except if you quit.

Success in the industry revolves around three principles – leverage, people and quality product

Leverage power:

Doing less for more! Maximizing opportunities!


I would rather make 1% on the efforts of 100 people than 100% on my own efforts – J.Paul Getty


To make money in the business you must understand and maximize to the full on:

  • People leverage
  • Time leverage
  • Information leverage

Personal development

  • Self
  • How many people you have helped – service to others

Quality products

A good product would ultimately sell. The truth is if the products work then it is easy to get referrals. More sells eventually leads to more income.

Role models

Some notable legends who are super successful, and stand as role model in the industry today.

  • Paul Getty
  • Robert Kiyosaky
  • Brian Tracy
  • Les Brown
  • John Maxwell
  • Donald Trump
  • Jim Rohn
  • Anthony Robbins

Why is this industry better than any other?

If you are blessed enough to get a real multinational network marketing or MLM Company, then you have a fortune because of the amazing life time benefits it offers. Some of them are:

Live out the perfect career

Become wealthy and influential

Enjoy time and financial freedom

It is a complete risk free system

Job creation and fulfillment

It is purpose driven. Only visionaries and dreamers succeed

You have decided to be a global ambassador in the international scene

You have succeeded in creating your own personal economy

Travel, have fun and enjoy luxurious lifestyle

Build generational business for your family and society

Develop personally and others too

Become ultimately successful by helping others

Life support system and more

There is a lot of opportunity for those who make the decision to change and am helping you with that lifetime opportunity right now.



Check out Business Opportunity for you here or contact our in-house business consultant on +2349020007572. Email to ideapreneurtv@gmail.com



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