How to Spot an MLM Scam Home Based Business

MLM businesses sometimes have a problem regarding corporate image because it is if often hard to tell a legal MLM enterprise from the scams. There are lots of legitimate MLM businesses operating in many states in the U.S. and in other countries.

Neophyte firms may call their operations “home-based business franchising,” or “affiliate marketing.” The bad thing about MLM businesses is that larger emphasis is placed on the recruiting of sellers than the selling of the actual product.

In the present economy, there is simply no need to sell consumers the overpriced products that MLM firms usually offer, they lure other people in to securing memberships with the promise that succeeding memberships will make them unimaginable amount of cash.

So it is important for consumers to differentiate legitimate MLM businesses from the fraudulent ones. So how do you spot an MLM scam home based business?

Here are some giveaways:

1. Use of Celebrities to Attract Clients:

A lot of MLM ventures in the present are attempting to associate their businesses with celebrities to give them credibility and appeal to buyers.

It is important to remember that these celebrities did not earn their money from MLM businesses, and therefore clients will not benefit from it too.

2. Shelling Out Cash For The Program:

Some MLM businesses will oblige their prospects into buying into the venture as they were hired to sell the merchandise.

It is a sure indication that it is a scam. If they are legitimate, there is no need for sellers to buy their own products, since it is supposed to do well on its own.

3. Purchase of Sales Materials:

This is the scam where an MLM business will require their sellers into paying for the materials to be used by the firm for advertising.

This a big no-no since companies should be the ones paying for their advertising, not the employees that they are hiring.

4. Seminars For Training:

Another sure sign that a MLM business is a scam is when they offer training seminars that actually provides little training, but dwell more on building the enthusiasm of the prospective recruits for the venture.

MLM companies will require them to pay the expensive training fees, with the promise that their “investment” will pay off in tenfold.

Always remember that no legitimate firm will make people pay for their own training.

5. Rate of People Dropping Out of The Business:

The truth is, the drop out rate for these MLM programs are humongous.

Of course, the promoters will not divulge the fact to prospective recruits.

About ninety-eight percent of them pull out of the program, an enormous amount compared to those who actually continue on with the venture.

Promoters will tell people that this minority are the hard-working, patient ones who have become immensely successful and is presently earning thousands of dollars, or even millions.

The real winners of the game are those who have the sense to drop out.

6. Brainwashing:

Promoters will go on and on telling recruits to have faith in the program, and believe that they too can earn a lot of cash like their predecessors.

These scams will often go great lengths to promote the products, to the point of even destroying the image of their competitors in a very unethical manner.

People who want to earn money and is planning to enter a business should always exercise great caution towards those who only want to scam money of them.

Always remember that a legitimate enterprise will make sellers earn their living and not profit from them.

Dont Give Up

MLM… Scheme or Dream?

Multi-Level Marketing (MLM) is a very highly debated topic.

Ask one person and they will say it is all a complete scam.

Ask another person and they will say it is the greatest thing in the universe. One person will say, “MLM didn’t work for me” and the next will say,

“I made millions in my MLM business!”

Well, Here Is The Truth Behind Multi Level Marketing:

MLM in and of itself is not a scam, scheme, or anything of the sort.

It is a very legitimate and powerful way to do business.

In fact, almost every business has at least some aspects or resemblance of an MLM, whether they admit it or not.

The problem is that people have a tendency to believe that joining an MLM opportunity is some sort of “magic” thing where they will not have to do anything but sit on their butt and still get rich in just a couple weeks.

When that does not happen they are quick to tell everyone they possibly can just how much of a scam every MLM in the world is.

The reality is that if they would have just spent as much time actually putting effort in to their MLM business as they did bashing it afterward, they probably would have made a lot of money.

These days most people have a negative view of multi-level marketing simply because they do not understand it or they don’t fully give it a chance.

They just listen to someone they know who says, “MLM doesn’t work”.

Start My Own Business

Guess What?

No business in the world, MLM or otherwise, “works” or “doesn’t work” ,

It is the business owner that has to put in the proper time and energy needed to make it work.

With that being said you do still need to be careful and do your due diligence before joining an MLM business or any other “opportunity” of any kind.

There are many people out there who are just looking to make a quick buck off by scamming you.

Just remember if you do have a bad experience it was not “Multi-Level Marketing” that was the to blame Instead.

It was most likely that particular company, or lack of effort, or an individual scam artist, or something else along those lines.

You can be sure that MLM in general was not the problem!

So remember MLM is not a scheme, it is a very pleasant dream!

A dream that will come true if you are willing to pursue it with all your desire.


What You Have to Know About MLM Online:

To be successful with MLM online, you need to consciously make the decision to succeed.

Unfortunately, this is not the mindset with which most people begin.

Usually, people will decide to try out MLM to see if it works.

This may or may not lead them down the right path.

In order to succeed, you need to decide that success is your goal.

With that goal in mind, you must then plan out the achievable steps that you will need to take in order to achieve that goal.

You will need to put your heart into your vision of MLM online success.

Your heart is your motivation that will bring you success, and should therefore be considered the true power behind your earning potential.

You can achieve anything you want with your MLM online business as long as your heart is in it, powering your mind and your efforts.

People with whom you network will feel the heart in your words and will be much more willing to deal with you than a similar candidate whose intentions aren’t as passionate.


You must educate yourself about Network Marketing and MLM online to truly maximize its potential.

MLM is an extremely powerful success tool that can greatly impact your life and your income as long as you understand it properly and can use it to your best advantage.

Put your commitment in writing.

Either formalize your agreement with your sponsor in writing, or simply write out a contract with yourself.

This agreement should lay out your responsibilities as well as those of your sponsor.

This is a very powerful success tool as it solidifies your commitment both to your MLM business and to yourself.

Get a calendar and a personal agenda book and use them.

Plan out the time that you’ll be spending on your business, and stick to this plan.

Indeed, a PDA is an alright solution, however, many people find something very effective about actually hand-writing your commitments.

Learn to neutralize the negative. If you don’t, then they will overpower you and inhibit your ability to succeed.

Negativity and objections are issues that every person in any business will need to deal with at some point.

Whether they start with you or someone else, you need to be able to neutralize these harmful elements so that they work for you instead of against you.

By mastering these points, you’ll be off on the right foot to having a successful MLM online experience.



Maybe MLM is not for you?

You have other idea’s to generate an income on your mind.

If you’re looking to learn how you can get started running your own successful full-time online affiliate marketing business.

Let me show you how i decided to do it. A no obligation free to join system that millions of people use.

This not a scam, as no credit card is required to get started.

Would love to hear your thoughts about this post or this site in general.

I will answer all the comments on my website personally so drop me a line below if you have any affiliate marketing questions or comments.

I’m happy to help any way that I can.copywright

Kind Regards Shane.

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

8 thoughts on “How to Spot an MLM Scam Home Based Business”

  1. Hi, depending on who you talk to,  but most people that get exposed to MLM have a bad experience so MLM is seen as a pyramid scheme by many. 

    that’s because the people that recruit them have not been mentored properly. 

    the biggest problem have with MLM is that they often charge ridiculous amounts for membership.  It should be affordable,  and have many success stories. 

    • Hello Jake, 

      Appreciate the time you have taken to read my post. 

      Some MLM schemes could give some income over time.

      Closer to the top is better for your wallet. 

      Regards Shane.

  2. I think your points about large drop out rates and brainwashing spoke to me most. I have looked into a few of these MLM scams in the past and find the language to fit into what you’ve said here, unethical and often making promises that it’s hard to believe they can keep. I think it’s super important for those just starting their home-based business to be aware that these scams are out there. If it feels fishy, it probably is! 

    • Hello Tucker, 

      Thank you for your feedback. 

      Far better things to do with your time than mess with these MLM scams.

      Regards Shane.

  3. Great post on MLMs here. To be honest I am not the biggest fan even of legit MLMs. It takes a real salesman to succeed with an MLM, and even then sales are far from guaranteed. I agree that MLMs typically focus on sellers more so than the product, which ultimately in my opinion is a losing business model for most people involved. You’ve provided some excellent indicators here in celebrities, purchasing materials and seminars. Indeed MLMs can be a bit of a cult atmosphere, which can work for some, but not most I would venture to guess. It’s information such as this that helps people steer clear and not waste their precious time and money. Thanks for a great post and keep up the good work!

    • Hello,

      Appreciate your time and comments. 

      I personally would steer clear of these MLM type programs. 

      There are plenty of other good affiliate programs on the internet one can do. 

      Regards Shane.

  4. Hey thank you for the awesome post! I really enjoyed reading this and it was nice to see that there are people who will admit that MLM models can still be good business models is the mindset is right, and the company is good! I personally did not have much success with MLM businesses but I have some friends who did with Beachbody. 

    • Hello Jessie, 

      Thank you for reading my post. 

      Appreciate the comments. 

      MLM is hard work you need to be selective.

      Regards Shane.


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