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Any MLM that makes more money from recruits than pure sales is counted as a scam in my book. Do all of them do this?

4 Responses to “Are all MLM's scams? Or just some?”

  • theosharatos says:

    Haven't you hear that 96% are working just to make the other 4% rich? There have been some successful and some unsuccessful mlm's over the years and compensation plans do involve recuriting and you do have to sell to meet certain requirements, but only some succeed. One feels they are scammed when the business doesn't work out for them or if they can't get their money back. There have been many companies listed on the Inc 500 list over the years in this field. Some very powerful and influential people run successful companies and pay out tremendous money to their recruits. That is why some are still around. So no, all mlm's are not scams, some just make their compensation plans to difficult for the average person to achieve therefore, they fail.

  • Reena says:

    Mainly scams.

    Look up Ponzi Schemes, Pyramid Schemes and High Yield Investment Scams.

  • Sweetjono says:

    it is like any business.
    some people a genuine and some people just wanna make a quick buck and run away.

    whatever the company you are considering, simply take the time to do some proper background research and do not pay for education.

    it should be free. You can get free course at http://www.supamlm.com/

    And remember, if the product is good it should sell itself.
    You should not have to run up and down the street, cold calling , trying to sell to friend and family…all this is simply crazy.

    All the best.

    J.

  • Ngoh Kwong Meng - MLMEasySales says:

    In fact you have a good definition of pyramid in your question.

    If you recruit people without product sales and you make money, it is pyramid.

    Most of the time, it will not sustain and late comers are going to lost all the money.

    Companies with proven track records, with good products and people really want to use the products and also they can make money then it is a legitimate company.

    Remember all the MLM companies are still run by people, so if there is mismanagement, company will shut down.

    There is nothing wrong with the MLM system.

    Just like if you are working in Enron and would you call any telecommunication company is a scam.

    The answer is the people, not the system.

    Please explore this business with some research and not by getting advice from people.

    Most advice were given based on one past experience

    If anyone told you this is scam,please check their success story in that particular industry.

    Then you decide

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