Avoiding MLM Scams With Scott Fox

Filed in archive MLM Opportunities on May 12, 2010

MLM or Multi-level marketing can be a legitimate business, but there are some things to consider, says Scott Fox of ScottFox.com and host of the ClickMillionaires show.

On this edition of the show, Scott answers a question from a viewer about multi-level marketing, network selling or direct selling as the process is variously called.

Scott's main points include:

Research the company. Has the company been around for a while? Look for scams, problems or ripoff reports online.
Look at the compensation plan. If you can't tell how you will be paid, how much or when you'll be paid, don't get involved!
Look at the product. Is there one and do people outside the MLM want it? Is the business more focused on recruiting new people instead of marketing a product or creating value?

Basically, Scott explains "Common sense suggests that real companies sell real products that real people really want."

Don't suspend your common sense and give in to the hype and the trust you may have in a relative or friend who's pitching the business, Scott recommends. Instead, evaluate the opportunity as you would any other investment.