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The Biggest Warning Signs of a Business Being an MLM Scam

MLM Scam

Are you ready to level up? Roughly one in 13 Americans have participated in multi-level marketing (MLM). Many MLM companies are looking for employees right now, and you may get dozens of offers for different positions. 

But you shouldn’t take one just yet. Though plenty of MLM companies are legitimate and lucrative operations, some of them are scams. You need to know the facts about an MLM scam right now. 

What claims do scam MLMs make about themselves? What should your job interview be like? What are the workplace conditions of scam MLMs like? 

Answer these questions and you can use simple MLM tips to find yourself a premium job. Here is your quick guide.

Low-Quality Services

Many MLMs claim that they are selling high-quality and important products. In reality, their products may be subpar or even dangerous to consumers’ health. 

Take a look at what your MLM is selling. Evaluate if the services or products are easy to use and address important problems in consumers’ lives. If it’s not clear to you that your MLM is selling any kind of product, you should not work for it. 

If your MLM claims that its products have health benefits, you should investigate the benefits. Talk to medical professionals in your area and see if they believe the products are helpful. 

Before you sign up with any network marketing company, you should go on Yelp, Glassdoor, and the Better Business Bureau’s website. Read reviews from customers and former employees and see what they say about the company. 

Bad Interviews

You may encounter many different red flags during interviews. It is okay if the interviewer runs a few minutes late, but running 15 or more minutes late is a bad sign.

The interviewer should know who you are and greet you warmly. When you sit down for the interview, they should give you their full attention instead of looking at their phone or computer.

Your interview may take different forms depending on the exact position you are applying for. But the interviewer should ask you specific questions about your qualifications, personality, and knowledge of the company. Generic questions like “Why are you here?” indicate the interviewer doesn’t care about you. 

You should ask the interviewer a few questions. You can ask, “What skills would I need to succeed here?” If they struggle to give you an answer, you should consider a different position elsewhere. 

Your interviewer should be kind to you. They should not push you to buy merchandise if you don’t want to buy anything. They should not become argumentative or take your questions about the company personally. 

An interviewer may say that you are exceptional and therefore do not need a second interview. This is a common tactic amongst scam companies. You should always speak to someone else and get more information about the company, and you should volunteer to submit additional paperwork.

It is okay for two or more company representatives to interview you, especially if you are applying for a senior position. It is not okay for you to be interviewed with someone else for the same position. This suggests that the company is more interested in filling the position than assessing your performance.

Aggressive and Confusing Tactics

While you are talking with your interviewer, observe how they refer to the MLM and your job. They should tell you what the expectations for the job are and what the company’s mission is. If they refer to the company as “the enterprise” or use another confusing term, you should take note of that. 

Training should never cost you money. You should not have to buy videos or training guides.

You should start training on your first day, and a senior employee should be with you to answer your questions and guide you. They should not just hand you some company materials and walk away, and they should not pressure you into making sales you do not want to make.

Treating potential customers aggressively is never okay. The best persuasion strategies are respectful and calm, not hostile.

An employee should never sign a person up for a service without their knowledge or consent. They should never pressure someone into signing a document if they understand what the document is about.

Cult-Like Atmosphere

Love bombing is one of the most common scam signs. An interviewer may praise you incessantly, even if they don’t know you well. You may be offered a “special position” after a few days of work, which may entail longer hours for less pay. 

Your boss should take steps to make you comfortable at the MLM, like offering paid time off. Perks like parties are nice, but they’re often a replacement for real benefits.

They’re also an excuse to see who is a “team player.” If you don’t go to a party, your boss may feel like you do not deserve a promotion or pay raise. 

Many MLMs celebrate their founders. But you should not be required to go to events celebrating them or do things like giving speeches admiring them. 

Try to have one-on-one conversations with as many employees as possible. If they don’t seem genuine to you, you should take that into account.

Trust your gut feeling about MLM tips and scams. Whenever a company seems too good to be true, you should walk out.

Spotting an MLM Scam

It’s easy to fall victim to an MLM scam. A company makes big claims about itself, saying that it offers life-changing products that you can sell for hundreds of thousands of dollars. 

But during interviews, the company stumbles. It may not give you information about your position, or an employee may pressure you into buying products. You may be forced into cult-like activities like venerating the founder of the MLM. 

Avoid these scams and look for better opportunities. The Network Marketing Team provides premium MLM guides. Read our network marketing tips today.

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