Most MLM (Multi Level Marketing) companies that advertise on the Internet are fully legitimate and reputable online based businesses. They have to be. After all, the name of the game is to recruit as many affiliates as possible, in order to make as much money as humanly possible. In this day and age of instant information sharing via the Internet and social mass media, you simply can’t afford to rip hundreds or thousands of people off. News travels fast -faster than ever before- and any company that engages in such behavior will quickly be called out and brought to account.

However, there will always be a few “bad apples” in the barrel that potential customers and affiliates alike need to steer well clear of. Here are a few handy tips that will enable you to identify such potential scam artists before you get wrapped up with them.

If It Seems “Too Good To Be True”, It Very Likely Is

Simply put, if you read an advertisement placed on the Internet by an MLM company that seems “too good to be true”, then it probably is. Beware of MLM companies that make inflated claims, such as enabling affiliates to make $10,000 in under 30 days. There is always fine print attached to such claims. Break out your microscope, read that fine print, and do a bit of research on the Internet to investigate the veracity of these claims.

Issa Asad's Simple organizational structure

Did The Job Interview Seem Strange To You?

If you answered the ad the company placed on the Internet, and went to a job interview, how did the interview go? Did the person you spoke with (either in person, over the phone, or perhaps through Skype) seem legitimate? Were they forthcoming and honest sounding when you asked questions about their company and their business practices? Did they evade any questions which seemed to them to be “too personal” or “top secret industry information”? The bottom line is, if the person who represents the company to outsiders such as potential new affiliates seems “dodgy”, then the company they represent may also be less than legitimate.

How Much Do They Expect You To Pay To “Buy In”?

Almost every MLM will have some “start up” costs, some of which will be passed on to each new affiliate who begins to work for the company. This is simply the way that MLM businesses tend to operate. However, before agreeing to shoulder your share of these costs, make sure you know exactly how much the amount is. Never sign any agreement without having your part of the costs clearly specified. If you do not insist on this, you may end up signing a “blank check” which the company can then cash, draining your finances completely dry.

These are only a few of the common sense rules you should observe before agreeing to work for any company. If the company makes any demands or insists on you agreeing to practices which sound odd, it is best to move on to another potential employer.