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A. Andrews and Sons Marketing Team
​What Is An MLM Scam?
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 What Is An MLM Scam?
What is an MLM scam? Are all mlms scams? Have you fallen for a scam? Are there network marketing companies that are controversial that you should avoid?

Wikipidia calls a scam a confidence trick. It even lists modern day con men or tricksters who have cheated people out of a great deal of money. It doesn't specifically connect scams to mlm's but it does to pyramid schemes.

I personally have been victim of some mlm frauds and mlm scam's. It's no fun to be duped and fooled especially when you try to get other people involved in the program. I was a victim to a couple of these scams:

They were: Prosperity Automated System - Shut down by the FTC in 2006. Our Power Forced Matrix by Thomas Thompson - He just ran off with everyone's money and as far as I know hasn't been heard from since.

​​And then there was
More Than Traffic - Not an MLM but a Scam designed to get MLM'ers to promote their business through MTT.  Also, another company called Ad Surf Daily had people worked up about unusually great profits until the Government shut it down leaving thousands taken and without refunds. In 2012, Zeek Rewards joined the ranks as one of the biggest "ponzi schemes" ever.

At the time, because I was new to the Internet,  I wasn't aware of how easily it was to be fooled by these scam artists. But unless you're given some kind of help or guidance, you too can become a victim. So are there any other concerns, problem companies or scams out there you should be aware of?

Before you get involved with these companies, you might want to do some research on them. Companies like YTB (Your Travel Biz), LifewaveMy Shopping Genie and Monitium have had somes serious questions raised about their companies. Click on the links to get started.

There have also been a number of MLM Companies that have gone out of business. Some because they made false claims about their products, others because they didn't deliver on what they promised and others because they didn't have good experienced leadership or financial backing.

​​Companies like
ITV Ventures, Efusjon, WoW Mobile, Synaura and Fortune Hi Tech Marketing fit this situation. So get to know what to look for in an income opportunity.

Just keep in mind that many marketers often say an mlm opportunity is a scam or ask the question, "Is it a Scam?" just to get you to read the information they've posted and hopefully to get you to join the opportunity with them. Here's a case in point. Notice he didn't even answer the direct question of someone who asked him, "Is it a scam"? in the comment section.

In other cases, some people report a company as a scam because it's a network marketing company or an mlm or their partner "didn't make any money" or was "taken to the cleaners" because they put up some money to join or for products.

​​These are people's opinions. They feel because most people fail to make any money in an mlm it is a scam. Other's are just very negative about mlm's and network marketing because the greater number give up or don't put in the work needed to build a business.
This video gives some balance.

There are also a number of mlms who have had deceptive trade practices and it's good to know what the legal requirements are for an mlm so you know if the opportunity your looking at measures up. Just be assured that there are many legitimate mlms out there.

We also decided to include controversial mlm's here. Some people don't know to do research before they join an income opportunity and some companies are steeped in problems, whether it be its owners, its members or leaders or its products or product claims and testimonials.

A couple of good websites to have in your radar for mlm happenings are Rod Cook's MLM Watchdogand Troy Dooly's mlm help desk

​​You should also know that any complaints you have about mlms can be given to the
FTC Sentinel. To learn more about the variety and current worldwide scams to help protect yourself, view the listings at Consumer Fraud Reporting and The FTC Consumer Alert websites.

​To learn more about possible scams, pyramid and ponzi schemes consider:

​Here is the link to the BBB list of top scams for 2013. Go HERE

If you want the latest information about Ponzi Schemes check with Patrick Pretty.