Scams

None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.

How this was put together

If you only read a few

  1. Avoid jobs where you must pay for a startup kit or pay to work, as this makes you a customer rather than an employee.

    Paying to work or purchase products to sell them is a sign of a scam.

    one person who lived it

  2. Treat job postings that explicitly claim to be 'not a scam' as likely scams.

    Legitimate employers do not need to preemptively deny being a scam.

    one person who lived it

  3. Do not lend money to MLM participants who claim they are 'about to hit it big' and will pay back plus interest.

    one person who lived it

    • Understand that MLMs are zero-sum games where participants must lose out for others to make money.1
  4. Tell friends directly that they are being scammed by MLMs, prioritizing their financial safety over their feelings.

    To prevent others from following their path into the scam.

    • Friends may become defensive or claim you only contact them about negative things.

    one person who lived it

  5. Avoid MLMs if income depends primarily on recruiting new members rather than retail sales.

    If money is made only by recruiting others who then recruit more people, it is classified as a pyramid scheme.

    2 people, independently

  1. Set firm boundaries with anyone who tries to manipulate you by preying on relationships to sell products.

    They exploit the difficulty people have saying no.

    one person who lived it

  2. Ban discussions of 'get rich quick' schemes in financial advice communities.

    They target poor people by luring them with hope and wasting their limited money.

    one person who lived it

  3. Be wary of dates with strangers who may actually be employees trying to recruit you into selling their products.

    Some companies use attractive employees to ask women out under the guise of dating while intending to sign them up as sellers.

    one person who lived it

  4. Search for the company name combined with 'MLM' to identify if it is a pyramid scheme.

    This search will reveal if the company is identified as a pyramid scheme.

    one person who lived it

12 more on this
  1. Be wary of companies using the term 'network marketing' instead of 'MLM'.

    They often use this term to avoid the MLM label.

    one person who lived it

  2. Do not attempt to educate friends about why MLMs are scams.

    They are taught marketing rhetoric to counter criticism and will likely become offended rather than listen.

    one person who lived it

  3. Refuse to pay any business in gift cards.

    No legitimate business requires payment in another business's gift cards.

    one person who lived it

  4. Avoid posting your resume on general job boards like Beyond or CareerBuilder to prevent spam emails.

    These sites have been associated with spammers flooding users' inboxes.

    one person who lived it

  5. Research MLM companies online to verify their claims before engaging with them.

    Online resources often contain analyses and scientific debunking of company claims.

    one person who lived it

    • Search online for scam alerts associated with MLM companies before engaging.1
  6. Be skeptical of publicly shared 'revolutionary' money-making schemes.

    True secrets are kept private to get the most from profit.

    one person who lived it

  7. Be suspicious if a recruiter hides the name of the company they represent.

    Hiding the company name indicates something is wrong.

    one person who lived it

  8. Recognize that 'business owner' claims in MLMs are false; participants are customers paying for the privilege to sell.

    one person who lived it

    • Remind participants in multi-level marketing schemes that they are customers, not entrepreneurs, because such businesses perpetuate themselves by recruiting new members rather than selling products.1
  9. Ignore job titles like 'Marketing Associate' or 'Event Coordinator' if 'Sales' is listed as a responsibility.

    If sales is listed, it will be your actual job regardless of other titles.

    one person who lived it

  10. Be aware that MLMs often use 'commissions breakpoints' to incentivize higher sales.

    Breakpoints encourage overbuying to reach higher commission tiers.

    one person who lived it

  11. Be aware that MLMs often use 'everyday millionaire' rhetoric to attract aspirational recruits.

    This rhetoric appeals to desires for wealth and status.

    one person who lived it

  12. Reject multi-level marketing opportunities if the initial presentation is vague or uses high-pressure tactics.

    2 people, independently

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