Tue. Sep 27th, 2022
multi level marketing

Mindy Lilyquist, a home mother, and former Home.com business expert started her home business in any way. At the age of only 19 years and with less than 30 days of involvement, she has unconsciously been victimized in one of the biggest multi level marketing scams in the story of MLM.

Equinox International started in the mid-1990s and on April 25, 2000, the Federal Trade Commission issued a notice that Equinox was an MLM scam and settled the lawsuit for an amount of $ 40,000,000 in compensation to the victims. Her share of the payment occurred ten years after being deceived and was negligible for $ 40.05.

The sordid details of his story are not as important as the lessons he learned from the brutal experience. The reality is that direct sales are a viable way to start a home business quickly and easily. Similar to every other aspect of life, there are shysters, and it is up to you to seek and exercise diligence when investigating an opportunity.

Here are 5 signs indicating that the Multi Level Marketing business can be an MLM scam.


Non-quality product or service: Many red flags should warn you of a business or financial opportunity, but the most important is the lack of product. Programs that drive recruitment into sales of a product or service can be a pyramid scheme.

If a company does not focus on acquiring more customers to buy their products but rather is interested in “building a team” or joining sales representatives, consider a red flag.

The basis of any good MLM business is to get products and services to end consumers. While building a team can be part of this, income is based on the assets sold by the team and not on recruitment.


Complaints about scandalous and unfounded products: one sees more in the health and wellness companies where the representatives boast that their products cure diseases or perform miracles.

Extraterrestrial Hype is a red flag in any industry, including direct sales. A successful company relies on quality items. If the associations you are thinking about turning into a delegate for interesting items or items that appear a bit pipe dream, be cautious.

The last thing your name is linked to is a defective product or a product that is the subject of prosecution.


High-weight deals strategies: The most well-known high-weight strategy is the section fascination on the ground floor. Be that as it may, in coordinate sales, it’s a decent open door, regardless of when you enter. Truth be told, you are more secure to run with an organization that has existed for a long time than a startup. Any effort to stop you from studying the business and “sleeping” is not with whom you want to work.


Pressure for “Buy-In” and Inventory: All Multi-Level Marketing companies will have start-up costs. You can not buy a McDonalds without investing money, and the same goes for direct sales, although it is much cheaper. What you want to look at are the “quick track” programs or pressure to have a stock that requires extra speculation. Because of this training, the law now requires that MLM companies buy stocks, but that does not mean you want to incur debt before you start and understand the business.

Having a few favorite products on hand can be good, but do not fill your garage of goods unless you are safe, depending on your experience in the business you can sell them.

ALSO READ: 5 Signs that Multi Level Marketing is a Scam


Misleading Advertising Practices: Some MLM representatives will make your business a “trade” or will use other descriptions to attract potential customers. MLM is not a trade; it is a business. Any MLM representative who encourages “work” uses disappointments and is not with whom you want to work. Other deceptive (and often illegal) practices include income guarantees or suggest that you will make money by doing very little.

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