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How To Discern A Legitimate MLM Company From A Fake One

To some people, trying to discern a fake MLM company from a genuine one can be as difficult as finding a needle in a haystack. It's no secret that too many Ponzi schemes are fronting as direct selling companies ripping people off and making it extremely difficult for unsuspecting victims to see through their ruse.

Having seen the plethora of challenges people are exposed to in thier bid to sign up to legitimate MLM Companies, wfdsa.org has created the 8 Point Test .This test enables you to easily detect a mere pyramid scheme masquerading as an MLM company.

So before you sign up to that network marketing company, do well to ask the following questions as contained in the 8 Point Test.

  1. Is there a product?

2. Are commissions paid on sale of products and not on registration/entry fees?

3. Does the management have a visible track record?

4. Is there a direct correlation between the number of recruits and compensation?

5. If recruitment were to be stopped today, will the participants still make money?

6. Is there a reasonable product return policy?

7. Do products have fair market value?

8. Is there a compelling reason to buy?

RESULT: If the answer to all the questions is YES, then the company being evaluated is a legitimate company. But if the answer is NO, then there is a high probability that it is a pyramid scam!

Hope this article has helped clear some of your doubts regarding how to differentiate a fake MLM Company from an authentic one? If it did, do well to share with others.

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