MLM Scams, MLM Pyramids, MLM Fraud?
What's the Truth on MLM?
The idea of " MLM scams " is thrown around and perpetuated by people who have developed a negative impression of network marketing... for one reason or another. Frequently, it isn't even for any solid reason or even based on personal experience... just an opinion they heard from someone else and decided to adopt as their own and spread around... like vicious gossip. Usually these people don't even know what network marketing is... haven't read What Is MLM ? (opens in new window).To be honest, the MLM scams ideas out there stem partly from this fact:
There ARE people who fail in network marketing.
But so what? There are lots of people who try lots of things and don't put any vision, planning, or work into them to succeed.
Click here to hear what one of my MLM Angels, Tim Sales, has to say about this (opens in new window). Government regulatory agencies find and eliminate illegal businesses, so the chances that you could become involved in one are very slim. It would have to be a company new enough for its MLM fraud to not have been discovered yet by the regulators. After reading my MLM Opportunities page, you wouldn't join one of those companies. OK, so maybe the companies are legal, the MLM-haters will say, but is the whole idea ethical?
Click here for another thoughtful answer by Tim Sales (opens in new window). So what about this awful PYRAMID word? Is MLM a pyramid?
A pyramid scheme? An illegal pyramid?
Is there any difference in these terms?
IS A PYRAMID A BAD THING?No.
By itself, a pyramid is not a bad thing.
Most of the world operates as one kind of pyramid or another. But obviously an "illegal pyramid" is not legal, and a "pyramid scheme" sounds suspiciously not like a good thing.
I'm going to defer once again to one of the most eloquent explainers of all-things-MLM that I know and ask you to Click here to hear Tim Sales explain PYRAMIDS.(opens in new window)
To hear more about Tim Sales, who has lectured about network marketing all around the world and was interviewed by Larry King, click here to visit my MLM Trainers page about him.
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