Are MLM Scams? Find out more in given article

You might have heard about networking marketing company scams / MLM? What are these scams?
Why and how are people attracted towards these companies? For getting answers of these
questions read given below article for more details

What is MLM Company?

MLM is a Multilevel Marketing company. For the past 3 years these companies have grown
themselves massively. These types of companies ask people to join more people, who will
work under them by which they will receive some amount of commission. These companies
are also called Pyramid marketing, direct selling network marketing companies. As they form
pyramid shapes, more people join them.

Are all MLM companies scammers and fake?

Not all of these types of MLM companies are scams. Some of these companies are genuine.
But you might have heard about scams happening related to these MLM companies. But
99% of people face financial loss in these scams.

Who all are the targeted audience of these MLM companies?

These MLM companies target mainly for the students, poor – middle class youth and
unemployed people.

Why are people getting trapped into these scams?

Mostly people are getting trapped into these types of scams or companies because they are-

• They are unable to support their family financially and might be worried.
• Youth have big dreams which require money and they find it easy by investing in these
  types of MLM companies.
• Everyone nowadays is in a hurry to earn money.

Has the government taken any action against duplicate MLM companies?

There are some guidelines passed by the government. After witnessing so many scams the
government came with some guidelines, rules and regulations 28 December 2021.

What were the guidelines passed by the government?

There are some basic guidelines provided by the government. Some of the important factors
are given below-

• Company has to fulfill every promise they have done to new joiners.
• Company can not over state any condition they can’t fulfill. For example – many companies
  offer things like: Earn lakhs per month even if you’re a housewife, Be a financial independent
  student etc.
• If company is promising something on their guarantee they have to fulfill their promises.
• If person who has joined company is not satisfied, they have right to get refund.
• Everything about investment should be discussed with new joiners before joining.
• MLM Companies can’t pressurize other for selling their products or asking them to join more
  people to the network.

How can we differentiate between original and duplicate MLM companies?

There are several ways listed below by which anyone can easily save themselves from getting
trapped into these duplicate companies –

1. When any company is original they provide their customers with solid products which are of good quality and by which
   customers are satisfied. But duplicate companies focus on selling products rather than their
   quality or customer satisfaction.
2. Original companies offer reasonable prices to their customers. Whereas, Duplicate
   companies offer high prices without good quality.
3. If you wanted to start your journey with original MLM companies they will never ask you
   for any entry fee but Duplicate companies charge some amount to be their members.
4. If customers are not satisfied with products sold by original companies they can easily ask
   for a refund but refund unavailable in duplicate companies.
5. Original companies offer commission as per sale to their products. Whereas Duplicate
   companies offer commission only when to make more people their members.

Also read: TRUTH BEHIND NEW CONTROVERY OF VIVEK BINDRA:क्या विवेक बिंद्रा BOUNCE BACK कर पाएंगे या नहीं?

Are these Duplicate companies still available in the Market?

Yes these types of duplicate companies are still operating in the market. These companies
have changed their approach of trapping people.

After the law passed by the government these companies acted as if they were original ones
and started selling products rather than taking money directly.

These companies told people that they’re distributors and they have to ask more people to
join these companies as distributors just like them.

These companies ask people that they are not taking joining money but if they want to join
they have to purchase something from the various products company offers. They also
provide an amount limit so new joiners have to purchase products above that range provided
by the company.

FAQ’s related Network Marketing/MLM?

For more such information do checkout out other articles. Don’t forget to share it with your
family and friends and do save themselves from getting trapped into these companies.