Work From Home Blog

Work From Home in 2013 – Avoiding Network Marketing Scams

Avoiding Network Marketing Scams

If you’re looking for work-from-home opportunities, you’ve probably come across jobs like these:

  • $1000 a day from home!
  • Automated-No Sales
  • Work from home part time-make $10K extra every month

And, if you immediately wrote them off and moved on, congratulations…you avoided what could have been a very costly mistake.

Jobs that promise you everything on the surface are frequently multilevel marketing, or network marketing, jobs. These aren’t really jobs as they much as they are opportunities to make money after putting in an initial, or even monthly investment.

Network marketing dates back to the 1940s. The structure of network marketing is relatively simple: primarily sales-based jobs that pay commission, with the promise of additional commission from sales made by recruits.

Network-Marketing-ScamsWhile this may sound like a great idea, it’s not—especially according to the United States Federal Trade Commission (FTC). The FTC, in a 2000 special report on multi-level marketing, stated: “Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They’re actually illegal pyramid schemes…plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people – except perhaps those at the very top of the pyramid – end up empty-handed.”

So, how do you know if a job is legitimate, and not a multi-level marketing scam?

You can look for obvious warning signs:

  • Job requires that you pay money up front
  • Job requires that you purchase a product, or products, for resale or personal retention
  • Job requires you to “recruit” other people in order to receive compensation
  • Interviews are conducted en masse, online or via teleconference

Read the fine print, if there is any. Jobs that aren’t really planning on delivering what they promise may use disclaimers in tiny font sizes that state “results may vary” or “results not typical”.

Heed the FTC’s warning—and approach jobs that make promises that seem impossible to achieve with great caution. There are real jobs out there that you can make real money from—they’re pretty rare, but they are out there. Avoid the scams…and keep searching for the good jobs out there.