Catch MLM – Network Marketing Frauds

The potential of Network Marketing and MLM is huge. Many people have made it big with Network Marketing / MLM both online and offline. This industry is definitely capable of generating high commissions and income for you.

Due to this, there are many MLM and Network Marketing Scams around, online and offline. Thus it is very important that you choose the company very carefully.

How to evaluate a Network Marketing / MLM Company


The foundation of all Network Marketing / MLM company is having good products and/or services. Having good products will ensure repeat sales from customers, thus long term sustainable income.

Without clear product and service lines, the company may be operating on a quich money earning scheme. These are scams. In the long run, you will not be able to sustain your income and company may close due to the reduction of new incomers.

Compensation Schemes

There are many types of compensation plans around, and they all have their different characteristics, and may suit different people. But when assessing companies you should look at the company’s maximum payout, on one sale.

If the maximum payout is more than 70%, you probably happy for only a short while. Such high commissions are not sustainable in the company’s point of view. In most cases, the maximum commission pay out should lie between the range of 50-60%.

And anything below 30% should make you think where did the rest go to?

Company Background and History

You probably want to check out the history of the company, and background before you join. A reputable company should have a good length of history in operation in this industry. And what was the company doing before this. It may not be the main consideration factor, but it is good to know.


Look for the company’s accreditation award. Some of the basic ones are Direct Selling Association (DSA) in the respective country. When the company has a lot of accreditation, it signals that the company is in good health, and should be safe to join.

Source by Jane Quek

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