Avoiding Network Marketing Scams

by Andre Vatke

Beware of ‘Robbing Hood.’

The Internet is filled with false rumors, unsubstantiated dirt, and rampant plagiarism.

A recent article in the ‘Scotsman’ reported, “The Scottish Parent Teacher Council said pupils are turning to Web sites and Internet resources that contain inaccurate or deliberately misleading information before passing it off as their own work.” As a result, grades are down.

The same holds true for network marketing.

The ‘Robbing Hoods’ are everywhere - copying articles, concepts, and ideas and posting them as their own - often to promote their own network marketing scams.

By itself it’s an annoying byproduct of web publishing. Yet in reality the statistics are clearly telling us that from 2002 to 2007 there were less people successful in network marketing, than there were from 1997 to 2001.

The main culprit is reliance on fiction over fact.

On the web anyone can say anything. That doesn’t make it true. Simply being popular does not make something right. Network marketing by itself is not a scam - but many marketers promote scams under the guise of legitimate network marketing.

The ‘Robbing Hoods’ of network marketing promise to reveal great success secrets when you buy their eBook, or use their system. However, the success secret turns up vague rather than specific, or is always one more affiliate program away. Income never rises above a trickle for close to 100% of those who participate.

In this reverse Robin Hood system, money, ideas even downline and prospects only flow one way… to the top. It’s the epitome of pilfering and thievery. They steal from the poor ‘good faith’ struggling network marketers by lifting attractive phrases, selling to their prospects even cross recruiting to their downlines. All in an effort to lure in the innocent and fleece the desperate naive flock. Once the trusting marketer’s pockets have emptied out and their hopes have vanished, they are thrown back out into the cold.

One such organization publicly stated that it was their goal to ‘steal’ distributors from other network marketing companies. They do it by spreading lies and rumors about other companies. They often promote a bizarre notion that companies and uplines have a vested interest in keeping you from being successful. While it is a fact that over 97% fail in network marketing, it’s far from an industry conspiracy or even on purpose.

The problem with ‘Robbing Hoods’ is real and such an issue that the Direct Selling Association has published a directive condemning these renegade groups.

How can you know whom you can trust?

Now more than ever, it makes sense to do your due diligence before trusting an individual or even an organization with your success. Here’s a quick guide on how to do that…

1. Start by looking at the claims. Income claims, pictures of checks, bank account screen shots even posing with your $250,000 car are all considered by the FTC as fraudulent unless it is clearly stated what average earnings are. Any claim that represents only 1% of those involved should be completely disregarded, chances are the underlying promotion is a network marketing scam.
    
2. Look for real data. Often numbers representing income are freely thrown about while numbers regarding expenses are left out. Earning $60,000 a month is much less impressive if it costs $58,000 or more in advertising and marketing expenses. Specific examples, data, even network marketing case studies on how a product or service can help you are important to making a sound decision.
    
3. Research the history. Google has made it easy to find out about any public person or organization. If an organization has been around for a while you’ll find both good and bad comments online. It’s important to look for specifics and track the history of the owners or key players. Some public figures have even spent time in jail for fraud. Few take time to discover it, allowing the ‘Robbing Hoods’ to continue their cycle of scamming the desperate.
    
4. Follow sound business guidelines. If you don’t know what they are, you need an organization like Leaders Club. (And yes, the above principles apply to us as well!) Check us out risk free for 30 Days.
    

About the author: Andre Vatke, is an independently certified marketing strategist and has created profitable marketing campaigns for numerous network marketing and traditional companies. He’s the founder of Leaders Club which has taught tens of thousands of network marketers how to create lasting professional businesses since 1994.

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