Is MLM A Scam?

Copyright © Paul Birdsall, Your Online Success Partner

What is Multi-Level Marketing?

Also known as affiliate or network marketing, the idea behind this type of marketing is that it rewards the seller not only for direct sales of products but for the recruitment of other affiliate marketers, as well as for the directing of traffic towards the parent company.

MLM has received a bad rep in the online world, often closely associated with scam
artists and pyramid schemes. When people hear the term Multi-Level Marketing, they
often mislabel it as unethical or even illegal.

So, is it illegal?

There is nothing illegal about Multi-Level Marketing; illegal activity tends
to occur due to the bad apples that are, in fact, running pyramid schemes, yet are
fronting themselves as legitimate MLM companies. Some of the biggest health &
wellness companies are large-scale affiliate marketers. They are driven by affiliate
partners who bring new customers back to the parent website, and they continue to
expand successfully, operating within the legal realms of honest MLM.

Why has MLM developed such a bad rep? The Internet is still a comparatively new social medium.

The growth and wealth of information offered by the online world is
infinite and unprecedented. The world is still in the early stages of learning how to
regulate the business side of the virtual world, and because of this uncertainty of how to
deal with the powers of the Internet, it!s still a free-for-all online. Because the Internet is
as anonymous as you want it to be, this is inviting to scam artists who want to make a
quick buck off of other people!s belief in “get rich quick” schemes.

Until we sort out how to regulate the online business world - and because of the
lightning speed growth of the Internet, we may never be able to - we must be very
cautious in the business we do and trust our instincts. Business is trial and error, and
this applies to the home-based business world on the Internet; you may have to try out
a few opportunities until you find the one that works for you.

The reality is you have to be careful with which mentor/affiliate marketing company you
choose to go with, since there is vast misrepresentation online, and it is difficult
(sometimes impossible) to police this fraudulent activity.

The best thing you can do to make sure you!re not on your way to becoming another
Internet statistic of being taken in by a scam artist is to research your company of
interest. Check out their reputation with the Better Business Bureau or whatever
business regulation industry you have faith in.

The next step is to look for others who have had experiences with the company you!re
researching. Check out testimonials - do they go anywhere, or simply lead you to
spam? Is your mentor available for support, leadership and training? Can you actually
get a hold of your mentor, whether it!s by phone, through email or even in person? Do
the sign-up fees (if there are any) seem inflated and unreasonable? Trust your instincts
- they're usually right.

If an MLM company is operating ethically and legally, there are legitimate business
opportunities for affiliate partners. There are endless business ventures via the Internet,
just be cautious in who you choose to go with and put your faith in. If you head into the
home-based business world of Multi-Level Marketing with both eyes open, the possibility of making real money does exist - you just have to find it by developing skills and treating it like a serious business.

Paul Birdsall teaches online marketing through his FREE 7 Day Online Success Boot Camp. You can learn more about Paul and take his online boot camp here: http://www.7DayOnlineBootCamp.com

You can also learn more about me at Facebook: http://www.facebook.com/people/Paul-Birdsall/816710462?