Is your home business opportunity a scam? It may be if these 3 warning signs are true.
WARNING SIGN #1: Is there a legitimate product being sold? Or is it a questionable product of low value? This key area separates a true opportunity from just a pyramid scheme. Some unscrupulous MLM company operators only look to make money from sign up fees and monthly fees by moving as many people as they can through a pay plan. Some refer to this type of opportunity as a ‘money game’. To these operators, the product is irrelevant. This is a critical warning sign you want to look for.
WARNING SIGN #2: Does the culture of the company emphasize only recruiting new distributors? While they may have a quality product, there’s little attention on actually retailing. This is a trigger for FTC action. Your opportunity may not be a scam with the intent of ripping off the unsuspecting public – it does violate FTC guidelines and your company can come under legal scrutiny.
WARNING SIGN #3: Do the owners or top leaders have a criminal record? Don’t laugh. Anytime there’s big money to be made it attracts the criminal mindset. Some Internet searches, especially on the FTC website, and State government sites can clue you in.
If any of these warnings signs are true you may want to proceed with caution. While your intentions are legitimate, getting in with the wrong crowd can bring guilt to you by association. With the ‘Clawback Law’ you can even come under the eye of Federal Agencies and have to pay hefty fines.
Something to consider.
