The New Stuff


Liars, scam artists, cheaters and failures call MLM a scam

Without much browsing online, you’ll encounter articles and posts labeling (or labeling) a given network marketing business — “This is a scam” or “That’s a pyramid scheme.” As the majority of multi-level marketing companies are respectable (or respected) do business by the book, complying with laws and best practices, such derogatory Internet items are often long on opinion and short on fact.

As best-selling author Robert Kiyosaki says: “Network marketing is the business of the 21st century.” The truth, alas, doesn’t stop liars, scam artists, cheaters and, well … miserable failures from spouting out their disapproval for a rapidly expanding business model.

MonaVie, an international network marketing company, faced a massive scare in August of 2010. A German law firm announced that a court decision was reached outlawing the MonaVie compensation plan. This libel caused concern amongst distributors and ultimately created a negative buzz through Europe. The misleading part about the story was the law firm lied, completely lied, as it has done many times against other MLM companies.

Pre-Paid Legal Services, a 39-year old publicly traded network marketing company, had similar difficulties from scam artists who practiced “short-selling.” These scammers would spread false negative information causing Pre-Paid Legal’s stock price to fall, then the scam artists would buy the company’s stock and when investors learned that the negative information was incorrect, the stock price would rise. This created a profit for the scam artists, yet dramatically hurt the reputation of a rock-solid American company.

Network marketing is a forthright business that requires real effort and time, even a few years, to result in success. Don’t embrace an MLM opportunity thinking you’ll get rich overnight; anyone claiming instant riches is misrepresenting the industry.

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