How to Spot Network Marketing Scams

In most cases, it isn't very difficult to spot a network marketing scam. The biggest one is the organization that asks for a fee for you to become part of the network but with nothing in return. Known as a Pyramid Scheme, these type of schemes have been around for many years, and that is actually the way the money flows to the organization is by each new distributor paying a few to join. Some people today refer to all network marketing schemes as pyramids if you even pay anything in the way of a sales kit. For example, if you pay for a sales kit as a condition of your distributorship, that does not constitute a pyramid because you are getting something for your money. Paying for a sales kit introduces you to the products your organization distributes and gives you an introduction into using your own products. For example, before network marketing hit the Internet, how would it have looked if you were a distributor of XYZ Corporation, you brought a potential distributor to your home for a marketing demonstration, and you had none of the products in your home? It certainly would not make you very credible as a recruiter, would it? That's why the sales kits were provided to introduced, so that new distributors could begin using the products of their organization.

Network marketing is not immune to scams by any means, and it's important that you be aware of anything that sounds unethical or illegal. Paying something for nothing is a red flag off the bat, but there may be others as well. Scams crop up all the time, so you need to make yourself aware of their existence. Follow the adage that if it sounds too good to be true, it probably is. In

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