Is MLM A Scam?

I was on a forum the other day when someone posted Is MLM a scam? Let’s just call him Joe; Joe was new to the concept of MLM or Multi Level Marketing aka Network Marketing. Joe had jumped right in to a business not knowing how to run a business or where to start. Joe used emotion to make a decision that he should have used logic. We have all been there admit it, that new car, house, or gadget. We bought it on emotion, not thinking about tomorrow sort of like our current state of the economy. From what I read Joe was signed up and forgotten about. He was left to run this home based business on his own. Then when Joe called up his uncle Bill and told him about this incredible business opportunity his uncle told Joe that this was a pyramid scheme and he wanted nothing to do with it. Wow! Joe thought this was going to be his way out of the rat race, put his kids through college and sip on those drinks with the little umbrellas on the beach somewhere and collect a paycheck.

Ok so is MLM a Scam? Well I guess that depends on who you talk to. With our current economy and unemployment, people have been flocking to the home based business arena a lot lately. The problem is that while there are good companies out there, people sometimes don’t understand how MLM works or they get very little guidance. The pyramid scheme theory? Here’s my take on that: You work at a company, you have X amount of bosses who have X amount of bosses until you get to the top boss or CEO. Ok draw that out and you have... you guessed it a pyramid! If you don’t have a clue how MLM or Network Marketing works there is an awesome video called the brilliant compensation HERE. (no you don’t have to sign up for anything) MLM is not a scam if people are shown how to run the business and are guided through the steps to get where they want to be. They need a Mentor that will help them through the whole process, and make them successful in the business. More on MLM in my next post.