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Home » Featured Posts, MLM

Watch Out For These 6 MLM Redflags

Written By: Patrick Ogunnaike on June 15, 2011 One Comment

6 MLM Red FlagsFasten your seat belts because what I’m gonna share with you
right now could easily save you thousands of dollars,
hundreds of hours and tons of emotional grief.
And maybe even a marriage or two.

So you’re searching high and low to find the
perfect home based business.  You’ve probably
heard about all the success stories of people going
from zero to millionaire at rocket speed.

After over 10 years of pain and punishment
here are  6 Red Flags that I’ve learned to look for
when looking at any opportunity. If you see any
of these things in a prospective opportunity then you
need to beware and start asking questions.

You can use this hard-won knowledge to help you
avoid the treacherous ice bergs that you’ll come across as you
attempt to sail over the ocean to financial freedom land.

1) Greed or Scarcity

Clue– You find yourself at an MLM opportunity meeting or webinar and
everyone around you is all hyped up because the business
looks so amazing.  Maybe it’s because there’s so much money
in the compensation plan or because you just have to bring in
2 people and you’ll be paid forever or they promise to pay you 10%
monthly interest on the money you put in.

Whatever the reason, if you find yourself so hyped up that you’ve
stopped caring if the opportunity even makes sense then that’s a

Especially if that feeling makes you want to join right now this


If it’s a real business then the opportunity will still make sense
after you’ve had time to cool down after the presentation.

2) Scarcity

In business there is often a best time to jump into an opportunity.
That’s a fact.  But if someone is pressuring you to join right this
second or they’re offering you incentives to join and telling you to
get your questions answered after you’re already in the business
then that’s a RED FLAG!

Sure you don’t need to know every minute detail about a
company to decide to join but if your questions are being
side-stepped that means you need to look deeper.

3) Unrealisitic Promises
->You only have to make 2 sales
->Get 5% per month interest – no work required!

I hate to be an old fogey but as the saying goes
“if its sounds too good to be true it probably is”.

I’ve personally lost over tens of thousands of $$$ learning this lesson.
If you’re sensing a theme so far then you’re pretty sharp.
Scammers always prey on your greed.

For instance if you could make decent ongoing money only doing
2 sales in a business then why isn’t everyone making tons of money?

4) Unnecessarily Complicated Comp Plan

If you need a phd to understand your company’s
compensation plan (aka: comp plan) then that’s a RED FLAG!
I’m not saying that the whole thing should be brain-dead simple but you should
be able to look at it and easily figure out what it would take
for you to make your start up money back. There shouldn’t
be a lot of crazy hoops for you to jump through to start making

I’ve been in the industry for a long time and there are
still some companies who have comp plans that I have sit and
stare at for hours to completely get through.  The bottom line
is that if the comp plan is complicated then it’s because the
company has created loop holes that keep people working while making sure
most people won’t qualify so they don’t have to pay out much money
for business created.

5) No Real Product
I don’t want to get all technical on you but if you’re
looking at a business opportunity then you need to look
at it like any business. Is there a real need for it in the real

Would people actually buy your companies products?
Or would people only buy them in order to get
into the business so they can sell them?

If the answer is no people wouldn’t normally buy these products if no business
opportunity was attached, or people may buy it but not
at that price then congratulations you’ve found another RED FLAG!

6) Have To Recruit to Make Money
Many pyramid schemes attach a product to their
“business model” but the simple way to clue in that they’re
just a pyramid is that the only way to make money is by

In MLM or Network Marketing recruiting is very important
because it’s how we gain real leverage to accelerate our incomes
but for it to be a real business there must be a way for someone
to join the business and simply promote the product get customers
and make a full time income. If that doesn’t exist then,
you guessed it RED FLAG!

Just so you see that I practice what I preach.
Here are the specs on the network marketing business I’m building.

Do you see it?

1) There’s no cost to become an affiliate
2) We’re very established with a track record of that’s over 10
years old
3) We have over 2 Million product purchasing customers that
have no clue that a business opportunity even exists.
4) You can build a business without recruiting a soul. In fact
we have a Media Advertising Co-op program where the company will
actually find customers for you.
5) You don’t have to bug your friends and family to buy products
from you.
6) You get paid commissions on every product your customers buy no
special qualifications required.

If you want to learn more about what I’m doing and
would like to apply to join my team.

Click HERE or go to the “Work With Me” tab up above
to learn the qualifications I look for in potential

Regardless though on what MLM opportunity you join
if you’ve followed these 6 simple rules you’ve instantly
set yourself up with a foundation for success.

To you success,

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