Multi-level marketing (MLM) schemes have gotten a bad rap in recent years, and for a good reason. There are more than a few MLM companies out there that are nothing more than scams, preying on people who are hoping to make some extra money. 

So, how can you tell if a company is legitimate?

And just what are a few warning flags to take into consideration? Keep studying for any useful guide regarding how to find the correct company-and steer clear of being scammed.

Tips to check out:

1. Do Your Research: Before investing in any company, it is important to do your own research to determine whether or not the company is legitimate. This includes looking into the company’s history, checking if they are registered with the reputed business bureau, and reading Market America review from past and current members.

2. Look for a Product You Believe In: It is important to have a product you believe in when joining a company in order to feel confident promoting it to others. If you don’t believe in the product, you won’t be able to sell it effectively.

3. Watch Out for High Recruitment Fees: One of the biggest signs of a scam company is when they charge high recruitment fees. This means that new recruits are required to pay a large amount of money in order to join the company, which is often not worth it in the end.

4. Be Wary of Promises of Quick and Easy Money: Another warning sign to have an Multilevel marketing scam happens when the organization makes impractical promises about how much cash people could make. Whether it sounds too good to be real, it most likely is.

5. Make Sure the Company Is Transparent: A legitimate company will be transparent about how its business works and what members are expected to do in order to make money. They will also provide information about how much money members can realistically expect to make.

6. Check If the Company Is Registered with the business bureau: A good way to determine if a company is legitimate or not is to check if they are registered with the authentic business bureau. Accreditation is not a guarantee that a company is legitimate, but it is a good indicator.

7. Don’t Get Pressure into Joining: One sign of a scam multi-level marketing company is when they put pressure on potential members to join before they have time to think about it. If you feel like you are being pressured into joining, it’s probably best to walk away.

What to do if you are scammed?

Multi-level marketing (MLM) companies are not illegal. However, many MLM companies use unfair and deceptive practices to recruit members, making it seem like an easy way to make money when in reality, it is very difficult to make money with an MLM company. If you have been scammed by an MLM company, there are a few things you can do.

  • First, try to obtain your money-back from the organization. This is often difficult, but it’s worth a go.
  • You can also contact your state attorney general’s office or the Federal Trade Commission (FTC) to file a complaint.
  • Finally, you can warn others about the company by writing reviews or posting on social media. By taking these steps, you can help protect others from being scammed by an MLM company.


The bottom line is this: if an MLM company sounds too good to be true, it probably is. Do your research, look for red flags, and trust your gut instinct. By following these guidelines, you’ll be well on your way to finding a legitimate MLM company that you can believe in—and making some extra money in the process.


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