Is MLM a scam? This is one of the questions I asked myself when I began researching ways to earn money from home a few years ago. In this day and age of the internet, it's hard to know what 'opportunities' are legit and what ones are scams.


I'd often hear stories in the news of people who had been scammed out of the money or when I'd tell people what I was considering they say, "Is that one of those MLM schemes?" But then I'd think if MLM is a scam why have companies like Mary Kay, Avon, Pampered Chef, and so many more been in operation for decades. If these companies were operating illegally, why are they still around?


I've come to the conclusion that MLM is not a scam for a few reasons.


First of all, MLM does not work for everyone and when it doesn't work, they stop and say "MLM is a scam; I didn't make any money." I look at it this way, not everyone who starts a MLM home business works the opportunity.


It takes dedication of time and effort to work and grow an MLM business. It is not a get-rich-quick scheme. Yes, you can make immediate income retailing a product or service, but to create residual income takes time. You can't expect your business to work itself. You have to determine what action steps you're going to take to grow your business and be persistent in taking these steps every day. You wouldn't eat an elephant in one sitting and your MLM business will not grow overnight. Making steps consistently everyday will create success in MLM.


Another reason why people view MLM as a scam is because they are not educated on the concept of MLM. They do not understand what it is and how it works, and they automatically equate it with a pyramid scheme.


When you look at the MLM model, it is shaped like a pyramid but it does not operate like a pyramid scheme which is illegal. You start at the top with a single person, and as more and more team members join, a pyramid shape begins to take place.


What differentiates a legitimate MLM opportunity from a pyramid scheme is that an MLM company will have a legitimate product that people can purchase. A commission or bonus is not received for recruiting an individual into a program, however they may earn a commission on the sales made by the recruited individual. A legitimate MLM company will offer a starter kit for a small fee (sometimes as little as $50 or less) and its value is greater than the fee paid for the kit. Also, legitimate MLM companies will encourage retailing and will have programs that will encourage the purchase of products without being involved in the business.


You can learn more about indentifying legitimate opportunities by visiting the Direct Seller's Association website at http://www.dsa.org/.


If you're searching for ways to make money at home, be careful because they are many scams out there. But also know there are many legitimate MLM companies offering an opportunity to grow a successful home business and there are many people out there who are already successful in doing so.


Find a company that's a right fit for you, do your research and trust your gut!


Expect SUCCESS because Life is Too Short to Pass Up Opportunity!


Kendra Rahne