5 Signs that MLM “Business” Might Be a Pyramid Scheme: Bad Option to Make Money

Most MLM (Multi Level Marketing) Companies are Pyramid Scam Scheme

Mlm ScamEveryone wants to Earn Money through very easy way so he can Get rich quick. That’s why much MLM (Multi-Level Marketing) or Network Marketing Companies growing in the market. These companies claiming extraordinary high income against very little work and easy work. In other words, do part time job and earn millions in few weeks. But the truth is totally different. Most of the MLM companies are Scam. These pyramid schemes just playing with your desire of money earning, grab your money and disappear.

Here is an Important Question you should ask yourself first?

Do you think is there any work in this world who can pay you millions for part time work.

Mlm Scam

Sorry to say but it is not. There is no existence of Get-Rich-Quick Schemes. but Yes, Scams are there undercover in such schemes, wanting your money.
MLM are usually Pyramid Schemes. Many countries of the world banned Pyramid Schemes because they source common men saving and will Disappear after some time.
Network Marketing makes unbelievable promises to trigger your Dreams for Luxurious Lifestyle and Extortion money from you, to make their Dreams come true.

Here I am telling you 5 signs MLM Pyramid Schemes or Scams…

1. Product/Service

Every Multilevel Marketing company should have product or service. In absence of product/service, it’s illegal Many countries Especially in India. As you can Check Govt. Guidelines


If a product is not there, its a money circulation scheme just type on google “The Prize Chits and Money Circulation Schemes (Banning) Act, 1978” and you will get lots of results regarding MLM or Network Marketing Guidelines.

2. High Pressure to recruit members Only

MLM Scam

If MLM/Network Marking company pressuring you to recruit more and more members its also sign that its Pyramid Scheme. As you start asking that how you can Earn, they suggest you and pressure you to add your relatives and friends under you. As the chain will grow you will earn more and more.

3. No Training / Access training

Either they provide no training and asking you to recruit new members, or they only giving you training to how to recruit new members, Both situations are wrong. If they Don’t provide you training then it is clear that is Pyramid Scheme.

And if they training you access, means they want to sell their educational materials to you like books, DVD,s or tickets of Seminars/meeting. Top management of those companies earns Millions through this. And in this education system, Finally, they are teaching you only one thing, “HOW TO RECRUIT MEMBERS”.

4. Illusory Products:

Pyramid system companies normally introduce Illusory Products to meet out legal Requirements, Like Online magazine, any online course, Facebook Page Promotion package etc… These companies running Pyramid Schemes undercover of Illusory Products.

As you must be sawed in news about Social Trade recently. It was based on facebook page like and did more than Rs. 3,700 crore scam. This product itself has no value. Kind of free. They just created artificial jobs. People pay to increase likes on the facebook page and get to like others Facebook page at very high cost.

MLM Scam Pyramid Scheme

You Must read This too Social Trade Scam Or Not: Yes It Is

Speak Asia was selling Subscription of Online Magazine, Fraud was over 2200 Cr. INR. QNet Scam – Rs. 425/-Cr.,  Stock Guru India Fraud – Rs 500/- Cr.

5. Talking about Only Dreams

If in any company is talking mostly about Drams over and over again it might be a Pyramid Scheme. They don’t have products to talk about, they have only on way strategy that is recruiting new members. So MLM/Network Marketing Companies based on Pyramid Structure, talking about your dreams to motivate you to do so.

Scam Mlm

Normally they say “If you want to fulfill your dreams, You should share this opportunity with others, Our motive is, Everybody Make Money, Just share with others this plan and be a Milliner.” With Lots of other Motivational Stories.

You can watch this video for better understanding

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