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Watch out for people who try to get you involved in something when there isn’t a product or service being offered that you or your consumers can gain from. It’s definitely a pyramid scheme if there is nothing being offered that you can provide as a service/product to consumers. I’m all for MLM’s I’m involved in one that is definitely solid, has longevity, and offers a legitimate product/service that people can benefit from and I earn an income off it whether I choose to recruit people into the business or not.
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When you research a business opportunity make sure that it does not fall anywhere in the lines of the definition of a pyramid scheme. If you see an opportunity that you only gain benefits or an income from only and solely off of you recruiting people into the business and not because you offered or sold a product or service to someone and earned a commission or income off of what you sold, beware, more than likely it is a pyramid scheme. People please, be wise in the decisions you make. Do your research on what a pyramid scheme is and use that information to make informed decisions when and if you decide to join an MLM.
Most legitimate MLM’s will cost you money to get started. That’s a given. The only opportunity that doesn’t cost you any money to get started is a JOB. But if you want to start a small home based business without having to invest hundreds of thousands of dollars a legitimate MLM with a proven track record is the way to go. I’ll give you the definition of a Pyramid Scheme per the Webster dictionary website:

-a usually illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants.

Based on the definition here is how you can spot a pyramid scheme or a company that may be one. First of all you will have to pay money to get involved in the opportunity and the ONLY way you can “make” money is by getting other people to join the “business/opportunity” and have them pay the same initial fee you paid. In addition, you will notice that companies that present themselves as legitimate MLM’s (multi-level marketing) opportunities will offer you some sort of “product” in return for joining the business, yet you are not offering anything as far as services or products are concerned to anyone unless they also join the “business.”

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In other-words you can’t make any money unless people sign up under you in the business and there are no other ways to generate an income if you don’t want to have people join the business with you.
When you are researching MLM opportunities ask yourself these questions:
1) How long has the business been in operation?
2) How many people have gained success in this business?
3) Is there any proof of their success?
4) Does this business offer a service or a product that consumers need?
5) Is there a market for the type of service or product that this business offers?
6) Can I earn a profit from this business without having a down-line, or getting people to join under me, and gain tax write off benefits?
7) How much am I willing to invest in this opportunity, is my initial investment worth it?
Does this business fall within the definition of a “pyramid scheme”
(ex. of a pyramid scheme – you solely earn an income/commission/bonus by recruiting people into the business without any type of product or service to earn an income off of whether you recruit people into your business or not)?

I hope this helps you when you are looking into MLM opportunities.

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