MLM – legitimate and scam companies

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You would have come across a lot of companies offering ‘unlimited income’ through their network marketing models. This is often referred to as MLM (Multi-Level Marketing) companies where they have all types of unique and creative ways of helping you earn an income. Most of these MLM companies will promise you ‘unlimited’ income but you have to be careful not to be cheated into such scams as not all MLM companies are legitimate.

So how do you identify if an MLM company is legitimate. The most important factor that you need to consider with MLM companies would be on their products. A company will be doubtful if they are not selling any tangible products. If they are only asking you to invest money and that they don’t have much to sell, then you must be careful.

There are MLM companies which talks a lot about income and such but seldom deliberate on their products. No doubt they have products to sell, but when you attend their talks and gatherings, nothing much is being talked about the product. This means that they do not put any emphasis on their products.

To know if a product is credible, you can always check the background in terms of origins, manufacturing and research. Many unscrupulous MLM companies source for cheap products through local OEM manufacturers and then claim to have a product to sell. They usually have very little idea of what their products can do. When products take a back seat, the company is not interested in selling them at all.

Another rule of thumb that you can follow is that scam MLM companies usually use the word ‘Global’ in their company names. This is to create an illusion that the company is worldwide or international. Although not all MLM companies with ‘Global’ in their name are doubtful, if you come across any of them, it would be best to carry out a background check before investing any money with them.

Ultimately, the most ideal thing you should do before investing with MLM companies is to learn more about them before starting. If their products are among the best in the industry and had won awards, you can always verify them.

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Author: james

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