<h2 class = 'uawtitle'>Beware of These Network Marketing Swindles</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Larry Franklee</div><br /><br />
<div class='uawarticle'>How are you able to notice the difference between a valid MLM opportunity and one of those network marketing scams or ponzi scams everybody has warned you about?<br />
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What's the difference that makes all of the difference? Is there a fast way to sieve the wheat from the chaff, chew the protein and spit out the bones, and defend you and your pocketbook from being taken for a ride? Let's dig a little deeper into the subject to hand and discover.<br />
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Network Marketing Tricks Defined<br />
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MLM compensation plans, also known as "network" or "matrix" marketing, are a way of selling goods or services thru a network of independent contractor, distributors or direct sellers. Amway is one of the biggest, most well-known network marketing firms. They have millions of active distributors worldwide and produce annual sales in the billions.<br />
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Historically, Amway has fallen prey to the "network marketing cons" label a number of times. But in each case, including a 1979 FTC inquiry in the U. S. , a 1997 Belgian court case and a 2008 court judgement in Britain, every fake claim was discharged.<br />
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In short , the FTC found Amway not guilty of being an illegal pyramid scheme or just another one of those network marketing stings because "distributors are not paid to recruit people and have to sell products to get bonus checks, and the company was committed to buying back its distributors ' inventory overstock.<br />
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Network Marketing Scams Made public<br />
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In a legitimate network marketing opportunity, commissions are earned only on sales of the company's products or services. Commissions can be paid on both high street and wholesale sales. But no cash might be earned from hiring other people as a distributor. To paraphrase, you can't make a dime from sign up costs. If a company pays out an indication up fee, possibilities are it'll fall into that dreaded network marketing stings category as it then becomes an illegal pyramid or ponzi scheme.<br />
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Protecting Yourself Against Network Marketing Scams<br />
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Each year there are many hundreds of new network marketing companies launched across the planet. Like most little businesses, most of them will not survive a full year in business. Others will drop by the end of year 2 and very few will continue to be around by the end of year five.<br />
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The best way to safeguard yourself against falling victim to one of those network marketing swindles is to get together with a proven company that has passed the test of time and legal scrutiny. For instance, Nexera.com hosts an annual list of the top twenty-five MLM companies that fall into this factors :<br />
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* The company supply a multi-level compensatory plan. * The company must be in business for a minimum of 10 years. * The company must have a Google Page Rank of 1. * The company must have an Alexa Rank. * The company must show up in Google Trends.<br />
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Naturally, much of this factors has nothing whatsoever to do with the lawfulness of any special company or its marketing model, but if you align yourself with a stable company that has been around more than 10 years and has a well-known online presence, you greatly minimize the chance of falling in one more one of those "network marketing scams".<br />
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<div style='font-style:italic;' class='uawabout'><br />
About the Author:<br />
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<div class='uawlinks'>The following is where you can find out much more. <a href="http://teresagriffith.com/network-marketing-scams/">Network Marketing Scams</a>.</div><br />
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