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[Ken Seavert Contribution Level: 2]

Honestly at times it can be hard to distinguish a scam from just poor training by the company. Just that the company doesn't provide good training leaves gaps for PEOPLE to exploit. I would steer away from any company that leaves room for people to be taken advantage of, even if its not encouraged it will happen.

Honest companys have been brought down by dishonest people. And in the end it's always just a few people. Peoples excitement and urge to make money blinds them and they unknowingly replicate the scam. Many scams are carried out by the passionate, unthinking masses unwilling to question if they are going down the wrong road.

Bottom line do your homework on everything.(the company, the owners, the products, the manufacturers, the training group) It's a business, not a backyard project!

Ken

[Felicia Smith Contribution Level: 2]

This day in age, the internet is going crazy with Pre-launches and new companies. Everyone is getting enticed into a SHINY new red Cadillac. I agree we all need to do our homework on companies and their background. If a coming is paying you for "referrals" is that considered a pyramid scam?

However I also believe that there are some very good new companies coming out so don't look down on every new company, we just need to investigate it.

I consider a pyramid corporate america!! Honestly, the big guy at the top is always the one making money!!

This is how MLM gets such a bad rap..

[Robin VDM Contribution Level: 2]

Another red flag appears when you use Google Maps to check the company address or phone number.... and find out it's a house in a residential neighborhood.... which a Google internet search of the address reveals is also the location for a handful of other businesses.....

Now, don't get me wrong...I'm all about having a business from home... but, we're talking about the actual location of a company's home office....The websites often make the company sound like a major corporation with hundreds of employees....and some even with a photo of a building representing their "home office" which turns out to not be the case at all.

And, if you think this is an isolated incidence, you might be surprised how often this happens!

[Gregg Carter Contribution Level: 2]

Ask Bernie Madoff.

When do you really know for sure that you're not getting involved with a scam? Even the most savy, educated, experienced people can do all the research in the world, check references, call gov't agencies, etc, and still be scammed.

[Lawrence Bergfeld Contribution Level: 4]

Any network marketing company that has policies and procedures that is over ten pages long and has the words of ongoing sales and termination is a scam. If a company has a policies and procedures over ten pages long run!! The reason they make it ten pages long or more is because they know that people get bored reading it and they also know that they are obviously too excited about their future to pay attention to any trouble when joining. Man they really could fool anyone!!!

Lawrence Bergfeld


Learn How To Think Critically Today
Lawrence Bergfeld
917-399-6207
lpbergfeld@gmail.com
http://lpb30.successin10steps.com/?mad=38283

[Loretta Boniface Contribution Level: 1]

I feel like I've been scammed when I've joined a networking business for a fee and then, in a short time I start to get bombarded with emails or phone calls from this company telling me that I should be smart and take advantage of all these other extra offers (for more money of course) that will help me grow successfully the original business opportunity I signed up for. I'm sick of my inbox being cluttered with all these amazing offers from such companies. Maybe the offers are legit but I don't like being bombarded with scammy-sounding emails as it can be overwhelming and I end up losing interest.

[Colin Durkin Company: Global Wealth Trade Corporation Contribution Level: 3]

Pyramid Scheme - Non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often with no product or service being delivered.
Network Marketing - A business distribution model that allows a parent company to market its products directly to its consumers by means of relationship referrals and direct selling. In direct selling we represent the parent company and are awarded a commission based on the volume of product sold through each of our independant business (organizations).

Legal MLM pay plans - Unilevel, Matrix, Stairstep Breakaway, Binary & Hybrid
Illegal Pay Plans - Aussie 1-up, 8-ball board game model

Some other red flags that get raised for me, no contact information on the website, gifting programs, no compensation plan on the website (this is a dead giveaway).

I would also like to point out another scam that people often overlook, the short sell scam. People involved in this type of scam will launch attacks under several different names, over the internet about different legitimate companies or opportunities. Look out for the names Barry Minkow, Jon Taylor PhD, Robert Fitzpatrick & David Thornton among others. If they call your company a pyramid scam, don't put a lot of stock into it, they call every MLM company a pyramid scam, and the truth is none of them know how to read a compensation plan properly.

[Rodolfo Plascencia Company: Golden Neo Life Diamite Contribution Level: 2]

Hi Rod, and thanks for posting such a great topic of conversation. I agree with most of what everyone here has to say, with the exception of what you yourself had to say. In my netwrok marketing company, I don't receive a single cent from the people that sign up underneath me. Why? Because that speaks volumes of the integrity of this company, for our aim is not to have sellers (in the strict sense of the word) or recruiters (in the strong sense of the word) either.

What we're all about is having people become aware of this company's awesome line of nutraceuticals (i.e., nutrients with medicinal powers), register with the company in order to be able to obtain them at a (discount) membership price, and then go on and recommend these based on their own personal benefit to others that want or rather need of them to improve the quality of their life. Our prerogative is the wellness of people, yet there's a tremendous amount of wealth potential, too. Another item I should mention is that our company is not of the type that asks people to leave their bank or credit card account numbers behind, so that whether they like it or not have unnecessary shipments made to their home. All transactions, even though they may require the passing on of the aforesaid information, are done with you personally on the other end making such and such orders. After that, not until you phone up the company again, or go to an independent registered distributor's website (like mine): will you have to give that information again to make the transaction take place.

So how does this translate into a legitimate network marketing operation? Simple, the people that sign up underneath you become part of your downline, and if and whenever they consume or purchase something to sell, each item has a certain number of points. (This company is a member of the Direct Sellers Association, and its products are not available anywhere other than with an independent registered distributor.) The points they accumulate also count towards your total sum, and based on the number of points accrued is the percentage of income you'll be receiving in exchange. No gimmicks or underhanded cheap tricks, just all in an honest day's worth of work. I should also add that this company of mine is not one of those that keeps pestering people to buy stuff or to attend meetings against their will. That bespeaks of a malady in the company's integrity and the respect it should have for people's lives and time, which at the end of the day are extremely valuable. Here with my network marketing company, you can go ahead and purchase your membership and never make a purchase in the entire year your membership lasts, if that were your saddening disposition. However, the superb quality of what this awesome company produces is what occasions people to want to not only repeatedly consume them but also recommend them to their friends, family, and whomever they feel compassion for.

The mode of operation of this company is in some respects similar to Costco or Sam Goodies. With your membership in hand, you can enter the premises of the company and get items at a discount price, and also recommend these to other people. The key difference here is that when have you ever heard of Costco or Sam Goodies give people a single cent back for the recommendation they make of their goods? Never! With my company, on the other hand, you do; and from doing such and, whereby, developing as well as consolidating your downline: the potential is as high as the sky! This is pretty much like when you come across a mechanic that does an exceptional work on your car. After confirming that the mechanic is great, and if your friend or relative is experiencing problems with their auto, wouldn't you consider recommending that mechanic to them? And all the meanwhile, as opposed to the mechanic that also won't return you a sinlge dime for your advertising his exceptional skill(s): here with my company you'll not only have satisfied customers but also potential business partners in kind. Thus you have the essence of a legitimate network marketing company that is full of integrity and is not out to have sellers or recruiters in exchange of some lump change, but rather there to forge life-long relationships and business associations.

In closing, I would like to add that what serves to distinguish a legitimate network marketing company from a mere scam is that they have scrutiny (or the lack thereof, as is the case of my company) coming by way of the Better Business Bureau (BBB). If the company is not listed with them then you can safely bet that you'll be flushing your money down the toilet were you to make the mistake of giving them a single cent. Time in the marketplace is also essential, but I don't mean to knock off any potential up and coming companies that have only been in the thought(s) of people but have still to materialize. Hope my two-cents' worth serves to contribute to this great topic of conversation. Thanks once again Rod, and may you have a great weekend. Peace and God bless.

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[Lawrence Bergfeld Contribution Level: 4]

There are three ways how you can recognize someone being involved in a scam.

If he does not build a relationship and starts talking and talking about how great his opportunity is.

If he says its a numbers game.

And if he says that he made lets say x amount of money in two months which is a lie and embezzlement.


Lawrence Bergfeld



Learn How To Think Critically
Lawrence Bergfeld
917-399-6207
http://lpb30.successin10steps.com/?mad=38346

[Roy Clinkscales Contribution Level: 2]

It puzzles me when I go to a website and can't find information on the founders or company owners.