Is this one of these pyramid schemes? Watch out! Be careful! They’ll take advantage of you….

Wait a minute there!

Do you think that I’m a sucker and so gullible? Thanks for the judgment on my intelligence. Anyway, how do you REALLY know if a MLM is not a scam?

First of all, realize that all companies have a pyramid structure. If this is the only thing you’re basing it on, it would be hard to find a business that isn’t a pyramid scheme. You wouldn’t be able to work at Wal-mart, Target, LL Bean, or even the local shop because you’re worried about a pyramid scam.


There is one real difference between a real business and a pyramid scheme. The biggest difference is wherever if the company has products or services or not. If you find out the company that a person is promoting has no products or services to offer, RUN AWAY AS FAST AS YOU CAN!!! This is 100% illegal.


Just because a company isn’t a pyramid scheme doesn’t mean you should blindly join the company. Do your research. Be weary of negative comments about the company. Only the ones who keep going make it to the top. Here are some questions you could ask about the company to get you started:

  1. How long have they been in business?
  2. What’s the company’s rating in Better Business Bureau?
  3. What is the compensation plan?
  4. How much of the product is sold outside of the company?
  5. Can you actually make money selling the product or service to the public?

Unlike a 9 to 5 job, you are deciding to work base on how hard you want to work, especially in the beginning. You may invest some money into it and won’t earn it back right away. That doesn’t make it a scam. I prefer a company like that because it shows me that a new IBO (independent business owner) is willing to invest their own money in their future. It’s a little motivator to get going and start earning. The investment is small compared to opening a store like Subway. These can cost millions to start up. Some MLMs are as low as $99 and some can be over a $1,000. What if you invest your money and it doesn’t work? Then, it’s a scam, right?

Unfortunately, I’ll have to break the bad news. If there are people who sign up at the same time as you or after you and they are succeeding, it’s not the company. Good MLMs have the know-how-to tools that everyone has access to within the company. It is the messenger, not the product or service. Each IBO is responsible to give out the message out to those who are interested (The key word here is INTERESTED) or has a need (Another key word, NEED).

money tree

You are responsible for your own results. Some bail out too soon. MLMs are like plants. You plant the seeds, water the seeds, etc. Do you expect to see a crop the next day? No? So don’t expect a get rich fast scheme from a good MLM company either.


Most people who decide to take that leap of faith in a MLM, they are looking for financial freedom. If you are looking for a way out of the rat race, find a MLM that fits YOU. I found mine and I’m happy I did. I see a fabulous future for my family and me, AND of course, those who sign up with my team. I’m not trying to brag. It’s just how I see my business and where I can go with it.