How to tell if a MLM business is legitimate or a Pyramid Scheme?

21 Days Blogging Challenge #Day2

This article is part of the 21 Days Blogging Challenge. You can find out more about the challenge right here

The other day I was looking for information about MLM because I wanted to write a post for my blog on that topic. 21 dbc 2

I was in lack of inspiration, and, as any blogger facing a blank screen would do, I decided to go on Google and see what the famous search engine had in store for me.

I’m sure you do the same thing too when you don’t know what to talk about on your blog, don’t you?

When I opened the search bar, I still really did not know exactly which direction to take.

So I started by taping some keyword phrases in the search bar such as MLM, top MLM companies, best MLM opportunities or what is a multi-level company for instance.

I took that approach in the hope of finding an article that could inspire me or be informed of the current trends in the network marketing niche.

I did not find what I was looking for…

What I did find though, and this almost choked me, is that any time I would enter the keyword MLM in the search bar, it was almost all the time associated with the term “scam” or pyramid.

See the print screen below.


I used a free tool that helps you get suggestions of keywords based on your primary keyword you enter in the search bar of Google for instance.

Do you see how many times the “keyword MLM is associated with both scam and Pyramid?

And I stopped the software at 70 terms. Should I had let it work longer, it would’ve extracted even more terms.

Are all the multilevel businesses scams or pyramidal schemes?

I don’t think so. Then, how do we know if a MLM company is legitimate or a pure scam?

Here is what the FTC website says about that:

“There are multi-level marketing plans and then there are pyramid schemes. Before signing on the dotted line, study the company’s track record, ask lots of questions, and seek out independent opinions about the business.

In multilevel or network marketing, individuals sell products to the public-often by word of mouth and direct sales. Typically, distributors earn commissions, not only for their own sales, but also for sales made by the people they recruit.

Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan.

If the money you make is based on the number of people you recruit and your sales to them, it’s not. It’s a pyramid schemes. Pyramid schemes are illegal, and the vast majority of participants lose money…”

With the growing number of people seeking for an opportunity to make extra money from the Internet, there are more and more MLM companies claiming that you’ll be rich the next morning without you having to anything?

So what do you think of such companies? Truth or Hype?

Most of the time, they are hype because no company can guarantee at 100% that you’ll make money with them. 3d human keep money with bags in front of them

Don’t let people lie to you. Making money on the Internet is hard, takes a great deal of time, money and personal investment.

While many multi-level marketing companies are honest and completely legit, gosh, others are to avoid like the plague.

As mentioned in the article from the FTC I recommended you to read above, one important factor you must have in mind when trying to determine if a company is legit, is that legitimate MLM companies lead products first and recruiting opportunities after.

The product is the most important thing since it’s what you’re going to promote and sell to others. Recruiting and opportunity come after.

Since you don’t want to promote something that is not ethic, you better think twice before joining a network marketing company that promises you easy money.

Not a single MLM company can guarantee at 100% that you’ll make money with them anyway.

Always make sure that the company you want to sign up with has clear and visible:

  • Terms and conditions of use
  • Income disclaimer and a refund policy
  • Someone you can contact in case of issue
  • If it has been sued for illegitimate practices in the past
  • Etc.

Hope this article helps you better understand what separates a sincere and honest MLM marketing Company from a scam one

To your success


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Please note: I reserve the right to delete comments that are offensive or off-topic.

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