5 Ways To Spot A Legitimate MLM

Here are the 5 key ways to identify whether a multi level marketing opportunity is genuine –

  • Does it offer real products at fair prices?
  • Are you presented with enough information to make an informed decision?
  • Is product training available?
  • Are you provided with resources to aid in selling the product?
  • Is recruitment of further distributors optional rather than mandatory?


Pyramid Schemes Are Illegal

With the huge array of multilevel marketing opportunities available today, it can be extremely difficult to determine which opportunities are legitimate and which ones are a little shady, or even downright illegal.

In the past, many ponzi or pyramid schemes thrived until law enforcement acted to make them illegal.

Unfortunately, some such schemes still operate today, many under a thin veil of legitimacy granted to them by offering a product for sale.

Fortunately, the signs above can aid in determining whether a particular multilevel marketing opportunity is legitimate one with a genuine chance of profiting from the sale of real products.

Learn Before You Take The Plunge

The best time to learn about legitimate multi level marketing opportunities is before you join any of them.

Read as much as you can, from free resources, so that you know what you are letting yourself in for and, also, have at least a basic idea of how to get started.

Many dubious MLMs offer product sales in order to appear legitimate.

If a company requires you to buy their product in order to be eligible for sales commissions, then that may be a red flag.

If they require you to recruit new members before being eligible to earn commission then stay well away as that is definitely an illegal practice.

You Want Facts, Not Fiction

Any information provided to you before you sign up should be factual, based upon how much the average person may earn, details about the products, potential pitfalls, etc.

If the entire pitch to you is based around how much you could make and includes pictures of cars, mansions and yachts then take it with a pinch of salt – pictures are easily found on the internet or taken with rented property.

Is The Product Any Good?

The main focus of any mlm should be the product that they are offering for sale.

Would you buy that product?

Would you buy the product at the price it is being offered at?

Do you think you could sell that product yourself?


If the mlm company want you to make them profits via selling their product then they should be offering support and other resources in order to make the job of selling as easy as possible.

Spread The Word

Recruiting further distributors to work underneath you is a common practice within multi level marketing companies.

That said, it should be a means of earning additional income and not be the sole source of your profits.

Recruitment should never be mandatory and there should be no minimum recruitment conditions attached to getting your first paycheck.

Additionally, if it is stipulated that the first commission or two that you earn goes to the person who recruited you then you should, once again, beware – if you earned it, you should keep it.

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.


  1. You mean some of the mlms actually are legitimate? :O

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