Online Pyramid & Multi-Level Marketing Scams

The Multi-level Marketing scam which is more known as the pyramid scheme describes the situation where individuals are recruited by other individuals to pay a monthly fee to recruit other individuals into a program. There are not usually any goods or services that are to be sold. Individuals are promised money based on the number of individuals they are recruited only to find in the end that the organizer disappears with the monthly fees. This scam has been practice and outlawed for years outside the web in many countries around the world. Now this scam has arrived on the web scene.

Here are some tips to follow to avoid falling into this scam:

Never invest in something which yields a return based on recruiting other individuals. This is a telltale sign that you are dealing with a pyramid scheme. If you are not selling a product or a legitimate service then be on-guard.
Don't be fooled by a company with a flashy website. Websites can be established quickly and cheaply on the net. Such sites can disappear as quickly as they appeared.
Be wary of programs that require you to purchase a great deal of inventory upfront. If you can find buyers for these goods, you might find yourself with inventory and no buyers if the program disappears.
If the program represents that you will not have to spend much time or that the program relies on the effort of those you recruit, then chances are that the scheme is a pyramid scheme.
These programs rely on "singers" who tout the plans as earning them a great deal of earnings with little effort. These people are usual paid by the company or are involved in the scams themselves. They are paid to entice you into the program.
Never be pressured into doing anything hastily without the time to think it over and to discuss it with your partner or advisor. If the opportunity is worth it, it won't disappear overnight. Further don't be lulled into a false sense of security even if a friend of yours has been recruited. They might not have had the benefit of this information.
Finally, if you think you have been scammed, report the scam to our Complaint Centre and your local Better Business Bureau. You may also want to contact your local Enforcement Agency to assist you in investigating the scam

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