MLM How-to: Sifting the Gems from the Scam and Scum

Multi-Level Marketing (MLM) and its promise of "get rich quick" seems to bring out the worst in people.

Over priced products, promises of quality that doesn't reveal itself in the testing lab, and the "make a killing and bail to a new company" pattern of these companies' organizers keeps public skepticism on "red alert."

But, there are a lot of people who make honest livings with reputable companies in the MultiLevel Marketing field.

Here are the ways to tell these good companies from the bad. i.e., most of the companies.

MLMs, a Legal Pyramid Scheme?

Some critics would have us do away with all MLMs.

But, this is silly.

And, we can't put all MLM company organizers in jail just because they get rich off the gullibility of highly motivated, but naive folks that want to invest in their own future.

In deciding what MLM to invest your time and money and more time and more money in, here are some guidelines.

• Study the company before you get involved with them, and don't trust the Better Business Bureau (BBB)


The BBB only tells you if there have been complaints against a company
• With MLM scams, most folks that have been "fleeded" are too em-bare-assed to report the company
• There is powerful protection in making people look stupid
• Besides, it takes weeks or months before the BBB gets another report
• In the meanwhile, unscrupulous operator have moved to another operation
• Pay attention to your intuition and to your conscience
• If you suspect anything at all, look for another opportunity, there are plenty available
• If the recriting process is geared up to fire up your greed glands, throw a monkey wrench into the sales machine and run
• If you are desparate and need money now, look for gainful employment somewhere else. You will not be thinking clearly
• Find out what kind of training program is available and find out the cost
• Legitimate companies invest in the training of their sales staff
• Disreputable companies make almost as much or more money on their "assocates sales training" than they do on product sales
• Check to see if you are required to purchase front loaded products
• Front loaded products are mandatory purchases of products that you don't need and can't sell
• Reputable companies provide the products for you to sell, and pay a living-wage commision on the sale of those products
• If the price that you have to pay for the products is above retail, you know that the offer is a "rip off"
• Beware of paying to attend fancy "motivational" gatherings


• Ask to talk to successful associates who have been students of the upline guru that is supposed to mentor you
• Discover what the training was actually like
• Ask to tag along, listen in, be a fly on the wall during a typical day with this person


• See if the amount of work that is required by the successful person matches the amount of work that you were told it would take


• Some MLM recruiters promise one hour of work a day and $10,000 per month, when the real equation is 100 hours of work per week and $1.00 per month


• This will also help you determine if your "mentor" has enough time to train you, or is that person so busy making money for themselves that you are left to fend for yourself (most common scenario)


• Check to see if your upline sponsor believes in the "quick buck, make a killing" approach. If so, run!


• The quick buck that these money-grubbing, leaches that attach themselves to your wallet make are the bucks that you used to own

More Help

There are other honest Blogs that can help you, and many that are scams, personified.

Here is a Blog that seems to provide honest information and value&hellip'

target="_blank">Link to the "I am my own Boss" Blog

And while you are at it, send your friends to this Blog…

MLMs are Scams: Make Money Anyway.blogspot.com

MLM are Scams: Make Money Anyway

Recruiting the Life Blood of MLMs: Translation--"Bleed the Suckers Dry"

Multi-Level Marketing (MLM) is driven by recruitment. Products are only an excuse that are used to recruit new distributors.

In some ways, products are irrelevant.

In fact, we have coined the term, "ill-relevant" to describe the negative effects that products have on MLM distributors.

In some ways, it would be cheaper and less of an economic burden if distributors just gave money to the people in their upline, instead of having to buy products.

Note: Being forced to buy products to either…

• Stay in the program
• Maintain commissions
• Continue to qualify for independent distributor status

...are all semi-legal ploys to continue to drain money from the MLM associate.

Recruitment Under False Pretenses

What pushes Multilevel Marketing schemes over the line from being barely legal to being illegal is whether the recruit stands any chance at all of being profitable.

In most cases, unless the recruit gets into the company on the first leg as one of the organizers, or, unless the recruit "jumps ship" from another MLM organization and bring their entire organization; the independent associate must work without ceasing, allow the recruiting process to consume them, and bend the truth.

The Ethics of Full Disclosure

The way that someone who is not on the top rung of the "MLM Pyramid" makes money is by…

• Telling the eager crowd of recruits that they will make money, while knowing that over 90% of them will loose money
Selling training
• Selling Promotional materials
• Forcing automatic sales of unneeded products by the recruits in order for them to remain eligible for commission payments
• Replacing downline associates with new recruits when existing ones drop out

Some critics state that the only way that upline folks can make money is by bending the ethics of full disclosure, and convincing a never ending stream of recruits to join their organization.

The unethical issues crop up when upline folks continue to harvest recruits even after they realize that the market for the products that they are selling is "saturated."

In this case, saturation means a saturation in the number of independent associates that are signed up, past the level where the market can create income for only just so many people.

Legitimate businesses control the number of their sales force so that the earning ability of their representatives is not watered down. Disreputable MLM companies continue to expand the representative base because the money comes, not from new customers, but from the induction fees and front-load product purchases that are required of the new associates.

in this way, the customer (new recruit) is being tricked into thinking that they are sales representatives, when in fact, they are the customers.

Further Proof

For additional proof, follow these links…

• How MLM Companies Misrepresent during Recruiting
• Ten Big Lies of MLM
• Skeptic's Dictionary of MLM

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MLM are Scams: Make Money Anyway

21 Ways to Tell if an MLM Offer is a Scam

Multi-Level Marketing (MLM) success requires common sense and education.

We need more common sense in the MLM field because MLM folks look too gullible to their customers…their greatest sketpics.

We also need more education.

The reason that so many folks fail at MLM is that their "so called" upline fails to train them.

Here is a link that will add to your education.

21 Ways to Spot an MLM Scam

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MLM Aspects of Affiliate Marketing

Multi-Level Marketing (MLM) and Affiliate Marketing share many traits in common.

Here are the similarities…

Both types of marketers:

• Cover all their own expenses
• Invest in their own training
• Expect training from their upline or sponsors, and never get it
• Devote their own (uncompensated) time, energy and effort to the task
• Jump from one new product or company to another
• Grab after "instant riches" instead of building a real business
• Come to believe that the problem is "themselves"
• Are blind to the real value that they can create

In addition, only a handful of either entry level Multi-Level Marketing (MLM) "independent associates" and folks with entry level Affiliate Marketing skill sets will ever turn a profit…yet alone make a living from these opportunities.

The Reason: Thinking Like a Customer instead of Like an Entrepreneur

You see... the myth of making money fast seduces the common sense of these folks, and they buy into the hype. They are hooked by slick sales pitches that leave them bereft of their own cash.

The riches that they hoped to "hog up" get gobbled up by the higher ups.

In a way, this is like a farm, where the farmer feeds on the pig that it raises. Well, maybe it is more like the farmer milking the cow. The upline raises the downline, i.e., the farmer raises and milks the cow.

The upline milks the downline cash cow.

Real entrepreneurs Know what They are Doing: They have a Plan

Multi-Level Marketing (MLM) and Affiliate Marketing hopefuls wish that their "ship would come in." But, real entrepreneurs know that their hard work on high payoff tasks will bring in the bacon.

Real entrepreneurs know that…

• You need to know what you are doing
• You have to be persistent
• Every action must be focused on making money
• Every expense must be focused on making money
• You pick one strategy and focus on it until you finish


• You sell to customers, not family and friends
• It takes money to acquire customers
• You have to measure everything
• Your business plan must be in writing
• Marketing is different than advertising, and you have to have a testable marketing plan that you follow

Without a solid business foundation, it is next to impossible to earn a living as either an Affiliate Marketer or a MLM Distributor.

Why? Because there is lots of competition, and both Multi-Level Marketers (MLM) and Affiliate Marketers need to offer products, services or programs that "do their competition one better."

So, don't believe the hype that this is easy.

Thinking and planning is hard, and testing is expensive and time consuming if you do it right.

And, what is the way of doing testing right?

Slowly and Carefully!

Think and Do Differently

The answer to entrepreneurial success is think and do things very differently from the "run of the mill" hoard. But, these folks are not really your competition. You need strategies and techniques that are different (and better) than the successful leaders in your business or industry.

You have to beat the folks who know the secrets at their own game. And, these folks won't share enough of the tricks and techniques to allow you to make it.

Want to see how a "pro" does it. Then, check out this resource

Click here to see marketing genius in action. Don't buy, Study!

Click to find out.

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Affiliate Marketing: The Online Equivalent of MLM?

Is Affiliate Marketing the online equivalent of Multi-Level Marketing (ML)?

Here are the similarities, although these seem to go against the grain of current thought.

You see... There so many folks believe that they can make a living online by marketing affiliate products online that they sign up to be affiliates (Independent Distributors?). You see the claims all the time.

But, here is the truth…

• You need to know what you are doing to be successful in affiliate marketing, just like MLM


• You have to be persistent until you break even, then make a profit, just like MLM


• Most affiliates fail to make any money at all, just like MLM


• Lots of people join, then bail out left and right, just like MLM


• Most people can't make any money on an affiliate program after the first promotion that they make to their family and friends, just like MLM

So, if it is next to impossible to earn a living as either an affiliate marketer or a MLM distributor, why is there so much hype that claims that this is the "easy street" to riches?

The Realm of the Possible

Well, it may be almost impossible to make money with either affiliate marketing or MLM, but it is possible to make money, and to make money ethically.

But, let's explore the false claims.

Let's see if we can still tap into either industry, even though the whole market is now saturated.

How are top affiliate marketers and MLM distributors making so much money, when the ordinary person can't?

And, how is the online market place different than the hard-goods, MLM market place?

Each market holds niches, have you found yours?

The answer is that the people that are successful do things very differently from the "run of the mill" person. And these strategies and techniques are different than you might think that they would be.

What happens is that newcomers to either field are told some of the story, but not all. In fact, they are not told enough of the story to make it work.

But, some affiliate programs are different, and some upline sponsors really teach the folks in their downline what to do. Most don't.

Here is a program that will show you exactly what happens "in the back office."

And, what happens in the back office is not that difficult for your to replicate, if only you knew what to do.

So, when someone shares these strategies and techniques (no need to call them secrets), you should pay attention.

A Real How-To

Here is a source of real, how-to information…

An Affiliate Secret How-To Project that Really Shares the Secrets

If you want details before you decide whether you have what it takes to succeed in affiliate of MLM marketing, check out this resource.

Can this information change your life, your attitude, your finances?

Can this resource improve your business?

Follow the link to find out.

An Affiliate Secret How-To Project that Really Shares the Secrets

And, check out this resource, too.

Just what would you do with a million visitors to your site?

Click here to get 1 Million Guaranteed Real Visitors, FREE!

Click to find out.

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Multi-Level Marketing: Online Marketing Equivalent That Works

business opportunities, mlms, multi-level marketing scams

Multi-Level Marketing (MLM) schemes that involve money are questionable, but, there are other schemes that work.

The T2000 Ultra program, is an example of one of these.

Why, because the payoff is not in money, but in Website traffic.

Question: What difference does this make?

Answer: A lot, because traffic on the Web can expand, and expand.

Look at this ad…



Of course, this scheme has a catch. What is the catch…

The catch is that once you get the people to your site, you have to convert them into believers, buyers, fans, advocates of your offer.

But, that is a story for another day.

The other catch is that you have only one ad to place, so it better be good.

Your ad must promise a believable benefit in only one line.

But, you can test different ads, and find one that works.

Then, you have to have a "back end offer" that your visitors want.

There is no sense luring people into a marketing funnel if you don't have a system created and ready for them to buy from you.

This doesn't have to be huge or elaborate, only something that people want.

Just what would you do with a million visitors to your site?

Click here to get 1 Million Guaranteed Real Visitors, FREE!

Click to find out.

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Reason to Avoid MLM-Schemes: Paypal will Kill your Account

Want to Establish a Web MLM?: Beware!

If you want to start a Web Multi-Level Marketing (MLM) because the entry costs are cheap and the pickings are great, beware.

You will be unable to use a PayPal™ account.

PayPal™ does not allow the use of its service with MLM and pyramid schemes.

The reason for this is that PayPal™ has determined that all MLM systems are "illegal."

Paypal™ interprets MLMs to fall under its, "Get Rich Quick" policy.

Here is the link to the PayPal™ Get Rich Quick Policy…

Link to the PayPal™ "Get Rich Quick" Policy

Of course, people in MLM programs and systems do not believe that they are doing anything illegal.

But, they are expecting to "get rich quickly."

But isn't it the American Dream to get rich?

And, don't the folks that get in on the top of a pyramid scheme get rich?

Well, yes, but at some point other folks, and lots of them, fail to get rich.

The pyramid is supported by a base of payees (the downline) who prop up the rich lifestyle of the pay grabbers (upline).

The key here is to "build an organization." This means collecting enough people (both distributors/ agents, and customers) that contribute their work to the upline's leisure.

The problem here is that the sales-soldiers work a lot and receive little pay, while the sales-generals work a little (or not) and receive a lot of pay.

Working for the hope that you will eventually get a lot of money is OK. People that start their own businesses do that all the time.

The problem starts when the pharaohs look down from their pyramid perch and can see that the market is saturated. What do they do?

The ethical action would be warn everyone that is involved in the organization, halt the enrollment of any new folks, improve the product, cut prices, and increase training and support to the existing sales team. However, the typical response is to continue raking in cash, starting a new business and bringing over anyone with a downline, and launching an exit strategy before the lawsuits and regulators close in.

So, while it is not illegal to "fleece" economic "sheep" by leading them down the hype-rose path to the shearing, PayPal™ frowns upon the practice, and will kill the account of anyone who uses their service in that way.

Whether this policy is fair to Multi-Level Marketers when the government does not label all MLM systems as illegal is the subject for hot debate.

But, PayPal™ made its money in an ethical and legal manner, and can set its own rules.

Besides, PayPal™ offers buyer's protection, and PayPal™ would loose it proverbial corporate shirt in court with each MLM lawsuit it tried to defend against.

If you don't like the PayPal™ rules, the solution is simple. Use another service, and don't worry about the business that you will have lost by not providing a system for accepting PayPal™ payments.

So, if you are about ethical business, think clearly about participating in a MLM scheme. If you want to make a quick penny, while loosing nickels and dimes later, go with MLM.

If your reputation isn't worth a nickel, do all the MLM that you want. Only, forget about doing it using your PayPal™ account.

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Skeptical about Online MLM?: After you have been Burned Offline, You have to be...

You don't believe that online Multi-Level Marketing (MLM) holds any more promise than the offline "opportunity" that burned you the last time, do you?

Well, who can blame you?

Your trusting nature...taken advantage of.

Your money

Your hopes and dreams of easy money...dashed on the rocks of a cutthroat reality.

Instead of being easy to sell; those cleaning supplies, that cookware, those vitamins, that high-end knife set, those over-priced skin-care formulations, that marked-up by 40% to 100% gadget...you were left with credit card debt, products you couldn't sell, and no commission on the odd sale that you did launch because you couldn't afford to keep up the monthly purchase requirements.

And, when you stop paying monthly the commissions that you are owed from the work of your down line dry up. This is the case of "fat money" going after "thin money" until you work your way up.

But, the problem isn't that your down line "partners" aren't doing their job, the problem is one of "time to positive cash flow."

In reality, you are the victim of "up line road kill." The people at the top of the MLM Pyramid ride easy street and are "making a killing," while you are on the trod the road to debt.

The problem is that MLM independent associates are really selling product plus overhead. This accounts for the inflated, premium prices that MLM products must carry.

Ordinary prices, normal wholesale, and honest markup that provide a reasonable profit are missing in the MLM model. Instead, the markup migrates "up," with each successive layer above siphoning their "share" of your effort.

This model works "great" until the market hits saturation, then, more work at selling and prospecting leads to diminishing returns.

At this point, the "higher-ups, the president's circle dudes and triple platinum gals" cash out. They abandon the static (or sinking) company, take their down line with them, and move on to a new company where they can pick fresh fruit.

Such a process leaves lots of hurting people in its wake. People that are eager to recoup their losses and restore their dignity and self-worth.

This group makes an ideal market, as long as you actually have a product or system that can help them.

But, this group has been burned once, twice. or more...first, second or third degree MLM burns. They are suspicious, and maybe even bitter.

Your first job is to eliminate all risk, perceived or otherwise. Then, you build their confidence by telling them a story about your own life, one that they can relate to.

Once you gain the trust of this group, avoid high-pressure tactics, instead...

* Pre-sell
* Recommend
* Show other people obtaining benefits

The indirect approach is always superior to full, frontal sales with "MLM-Wars" veterans.

Alleviating pain and suffering makes you a trusted advisor, rather than a sales person.

And, when you are trusted. Never do anything stupid and self-serving like drag them into another MLM scheme.

Lead the only to systems where they actually can make a living.

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Ethical MLMs: A new way to Financial Freedom

Multi-Level Marketing schemes (MLMS)abound with the promise to make you a lot of money.

Trouble is, you don't have enough rich friends to sign up, and your family members are always strapped for cash.

In fact, if you tell them how much money you are making on your MLM business, they always seem to get around to asking you if they could borrow some money!

But, what if you could make one of these systems work? What would that be? Would that be a sustainable business?

Here is the simple answer.

You don't make money trying to sell MLM products yourself. No, what you do is help the endless supply of people who are baited, cajoled, seduced…promised the Moon...maybe even promised the stars and the planets…for joining a downline.

Basic marketing is simple:

1. Find a desperate, rabid crowd that lusts, hungers, thirsts, longs for your product
2. Find a huge "want" in the members of that crowd
3. Pander to that want or resolve the biggest "pain" that the crowd members anguish over

With cleaning products, high-end vitamins, exotic berry juices, Internet marketing eBooks; the hunger, thirst, i.e., "lust" is to make money. And, the pain is the problem of building a downline.

The upline sponsor made hard-to fulfill promises, painted bright and sparkling scenarios, touched the "G-string" in the prospect's greed gland and shared the secret treasure map to the "Fountain of Wealth."

But, after salivating by expecting a chauffeur-driven excursion to the savory meal at the Wellspring of Wealth; the prospect finds themselves trudging the Road of Hard Knocks. And, the only "load lightening" that the sponsor offered was the light-touch that excised a substantial "chunk of change" from their bank account or wallet.

And, what remains tattooed upon the psyche and tattered self-esteem of the downline, down-hearted, down-in-the-dumps fleeced dumpling that is your prospect is plenty of pain.

Pain that you can use to your advantage to make plenty of easy money. Money of the kind that the poor chump that you are going to help dreamed of. Easy money. Fulfill your dreams money.

And, you are going to help in an ethical manner…help eliminate the pain and shame from your prospect with the dumpster self-image feels.

Whether they have have a stash of vitamins that will feed a family of 12 for a year, a garage warehouse of cleaning fluids that could sanitize the NYC taxi cab fleet, or enough tropical berry juice to float a boat; they are in over their financial heads.

You could...

• help them cut their losses
• coach them on how to start and run a real business
• refer them to MLMers Anonymous
• Help them sell this stuff to other losers

A Better Idea

A better idea, and one that is the subject of this Blog, is to provide resources that help people that were snared in the glittering trap baited with the possibility of riches; i.e., MLM Independent Distributors, to actually make money.

These goals can be modest of grandiose. But, you can help them save face after making a monetary health threatening decision like joining the MLM-de-jour.

Or, you can help them make real money.

The choice is yours, and your conscience will remain "squeaky" clean.

Help them Look on the Bright Side

People that you help don't have to remain shackled to guilt for squandering their savings. Their children can receive a real inheritance, not some equity in a "pyramid-plan" search for the "money-oasis" scheme that has no chance of paying out.

You can show these lost and confused souls the way out of debt, the way to financial freedom. And, your goals do not have to be major and earth shattering. If you can get the "distributor" to call a halt to the $150.00 a month product shipment (you make them $1,800 that would have been lost in unsalable inventory).

Show them how to liquidate and offload the stack of products that they accumulated by selling on eBay™, and show them how to actually recruit people that want to take on the product sales role.

Nobody would mind being a MLM Independent Distributor if it wasn't for the recruiting and endless telephone calls.

The Key

There is only one key to success in the MLM arena. That is, "Make Recruiting Easy." Automate the recruiting, and you have a "do-able" business.

Try to recruit the way that the rich owners of the MLM companies suggest, and you become a slave to the telephone and your prospect list.

Tell your friends about this "Tell it like it is" MLM Blog and our ethical MLM approach to self-respect and financial freedom.

Consider this Blog the online equivalent of helping someone out of debt by cutting up their credit cards.

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