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How can I Detect a Network Marketing Scam?

Article Details
  • Written By: Patrick Roland
  • Edited By: A. Joseph
  • Last Modified Date: 07 November 2016
  • Copyright Protected:
    2003-2016
    Conjecture Corporation
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The internet is full of money-making offers that appeal to people looking to earn extra income. Some network marketing resources actually are legitimate, but it can be hard to differentiate between them and a network marketing scam. Fortunately, there are a variety of tactics, ranging from research to communication to using simple common sense, that will help you determine whether you can earn money or lose it with a network marketing program.

If you receive an offer that sounds too good to be true, some simple research can help you determine if the company is operating a network marketing scam or not. An Internet search engine query is a great way to learn about a company or a contact person's history. There are many watchdog websites that will discuss possible threats and companies. If any name associated with the company you are searching for is attached to past transgressions related to their job, there is a fairly good chance that the offer is a marketing scam.

Communication is another simple way to detect a network marketing scam. Write emails or talk on the phone with the person offering you this marketing opportunity. If they avoid answering questions or provide unsatisfactorily vague answers, you should be highly suspicious. If they do answer your questions thoroughly, you could be dealing with a legitimate organization.

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Any time you see impressive photos of bank account numbers, images of large checks and other claims of big earnings, this can be a sign of a network marketing scam. In the United States, the Federal Trade Commission has ruled these tactics illegal unless it is clearly stated what an average earning is, along with all of the impressive claims. Any group not providing this data should be considered possibly fraudulent.

Use your common sense when you are asked to buy products or services in order to make money. It is a popular network marketing scam tactic to require participants to purchase a certain amount of products, pay for a conference attendance or even make money by providing bank account numbers in order to reap the benefits. In the physical world, these claims would be highly suspect if someone told you this on the street corner, and that same skepticism should be used online.

There are many legitimate marketing network opportunities to help you make money. Any one of these flags does not automatically disqualify a company, but it should make you highly suspect. Always do your homework on an opportunity, and if you do not feel completely comfortable, don't do it.

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MrsWinslow
Post 1

Here's the main question you should be asking: How does this company make money?

Do they make money by selling the marketing supplies or information to would-be entrepreneurs, or by actually selling products?

And just because an opportunity is legitimate doesn't mean that it's for you. Not everyone is successful as a salesperson. Some marketing opportunities do not require an upfront fee or purchase, and it might be wise to start with one of those to see if you have what it takes to actually make money that way before making an investment.

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