MLM Scams – Are MLMs All Scams?

mlm scamsThere are thousands of claims regarding MLM scams everywhere on the internet.

If you have been looking to join the MLM industry, you would have most likely gone on the internet to research the particular company you are looking to join and you would have found a lot comments or reviews about MLM being a scam.

So in this blog post, I am going to dig a little deeper and look into why so many MLM’s are considered scams and some of the reasons why people are paranoid about MLMs.

Hopefully at the end of this blog post, you will have a better understanding of the so called ‘MLM Scams’ and will be able to have a balanced opinion.

There are 2 kinds of people who make claims about MLM Scams

1. Those who have failed in the industry

A lot of people jump into an MLM company with absolutely no idea of what the business entails.

Some people actually have a delusioned idea that once they join a company, the money just starts pouring in.

So they get in, speak to a few family and friends and when they no sales and no signups, they conclude that their company is an MLM scam.

What do they do next; they get on the internet and bad mouth the company and the industry in every forum they can find.

If you look at this critically, these people had no mlm marketing skills whatsoever so they were destined to fail in that business.

Most MLM companies will give you their products and also give you some basic mlm marketing training but at the end of the day, it’s your business and it’s up to you to get all the marketing training that you can lay your hands on even if you have to look outside of your company to get it.

2. Those who have never even attempted any MLM company

A lot of people who have these MLM scam claims on the internet have never even joined any company themselves. A lot of what they are saying is hearsay and is based on other peoples’ opinion.

Many times, when I see people bad mouthing an MLM company, I’ve come to find out that they never joined the company in the first place, so I get a bit wary of the foundation of their claims.

So my point is, don’t believe everything you read face value. Dig deeper before you make your conclusions.

There Are MLM Scams Out There Too!

If you’ve been reading this blog post, I’m not trying to say that all the MLM scam claims are false. There are a good number of scams out there too.

So it’s up to you to beware and do a well balanced research especially if you are new to the industry.

Here’s what I recommend if you are looking to join an MLM company:

  1. Make sure the company has a product. The products could be physical products like juices, health products etc or they could be non-physical like memberships. But there has to be a product. If there is no product, chances are that it’s an MLM scam.

  3. Research the company owners, make sure that they have a track record.

  5. Research the team you are looking to join and make sure they have good training in place, especially on how to generate leads.

If people knew how to market effectively, there would be fewer claims about MLM scams

A lot of people who hate MLMs, feel that way because they have lost money in the industry.

And the reason why they lost money is because they didn’t have the essential marketing skills that would help them get leads and sign ups and of course more money!

Basically, if you don’t have more leads than you have time, you will be out of business or will be losing money every month.

So in conclusion, yes, there are MLM scams out there but many of these claims are based on the fact that the people involved didn’t make any money and this problem can be solved by having effective marketing skills.


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