A Real Business or a Pyramid Scam?

Whether you are a college student, a stay-at-home mom or dad, or just someone looking to make an extra income on the side, online businesses and network marketing businesses can be a great way to make some money. These business systems are flexible and allow you to work when you want as much as you want, and can usually lead to a lot more income then cashiering or waiting tables. Unfortunately, it can be hard to tell which of these businesses are legit and which are scams (usually illegal pyramid scams) until it's too late.

If you are looking into starting your own small internet based or network based business, here are some things to look for to differentiate between a legit business and a scam:

1. How did you hear about the business? Very rarely will you find a legit business on an internet link or in a flyer saying "business partners wanted." True businesses want to know who is getting involved, and will train business owners to only refer people they know. If you just hand out flyers or post internet links, anyone can respond, and you won't know their integrity, their sense of professionalism, or anything about them. If a friend approaches you saying they've gotten involved in a business and are looking for partners, you might have a better chance at a legit business, especially if your friend can identify a group of uplines that they know personally.

2. Where are the products the business sells? If a friend presents you with a business opportunity, they should be able to offer you some kind of sample of the products the business sells. Also, always ask if you don't want to actually become a part of the business, if you can still purchase the products as a customer. A product that you can only get by being part of "the business" is a sure sign of a pyramid scam.

3. How much information do you get before you make a decision? No legit business should pressure you to decide whether or not you want to join at any time. You will probably attend a party or a quick "interview" with a business owner to get a taste of the business, and then be given literature or CDs, an invitation to a meeting, or a chance to meet leaders in the business. A true business will let you take all the time you need to get questions answered and decide for yourself if you want to be involved. You should NEVER be pressured into making a decision after one or two meetings.

4. What does it cost to get started? Yes, even legit businesses will usually include a start up cost. This could range anywhere from 10-200 dollars (I have yet to hear of a legit business that costs more). However, the important thing is not so much what the business costs as to where your money is going. A legit business usually requires payment for training materials, a starter-kit with samples of the products, and access to a website or virtual office. This money should be refundable, too, if the business just isn't right for you. If any of the money goes to the person who gets you started, run away as fast as you can!! This is called a head-hunter fee and is a 100% illegal scam!

5. What does the person who sponsors you get? As I mentioned in my fourth point, the person who signs you up should NOT get any type of compensation just for doing so. Once you start making money, your sponsor will probably get an increase based on a percent of what you make...but this increase should come from the company, not out of your paycheck. This is the company's way of rewarding your sponsor for taking the time to sponsor you and mentor you. In addition, you should have the opportunity to "pass up" your sponsor (aka make more money than they do!) if you are working harder than they are. If you are constantly tied to your sponsor's coattails, or if money is being taken away from you and given to them, you guessed it...PYRAMID SCAM!

6. What kind of training is offered you? You should receive ongoing training when involved with a business team. This may involve attending weekly or monthly meetings, receiving a CDs or MP3s, or receiving literature. (There is usually a cost involved for these materials). If you are left on your own to flounder, or if the only help available to you is a never-updated website OR the person who sponsored you, it's a sure sign of a scam.

7. What does the better business bureau have to say? Regardless if a business is legit or not, if you try googling it or even asking people about it, your going to hear half the people bash the business and half say how great it is. Check the better business bureau and use your own judgement.

8. Does it sound to good to be true? You really can make more money with a network company than you can with most 9-5 jobs...but it won't happen instantly. If you are guarenteed to make thousands your first month in business, or if the business promises to be no work at all right off the bat (not no-work-at-all after months and years of getting the system up and running), it probably is too good to be true!

Here is a list of business that you might be approached with. I know people who have worked with each of these businesses and can testify that they are legit businesses:

Mona Vie- A Health drink made with acai berry. Easy to build in that you only need to get two people up and running before you can start making money.

Arbonne- Bontanically based health and beauty products. Great business and very high quality products.

Mary Kay- Cosmetics...although I do have to say since the death of Mary Kay Ash, the products have gone somewhat downhill. This business can cost a lot to maintain, too, so it can be hard to break even or make money.

Avon - again, health and beauty. This business is also very cheap to start, too. The last time I heard it was only $10.

Lia Sophia - Jewelry. I don't know much about how the system runs but I have several friends who are Lia Sophia customers and love the jewelry, and I have to say it is cute stuff!

Pampered Chef - Sophisticated cookware and kitchen utensils. My mom and several of my friends have hosted parties and bought their products, and they have some really neat stuff. The parties are fun to host, too, because you get to make all kinds of yummy samples!

Home and Garden - decorations and supplies for your house or garden. Again, some fun parties to host!

Amway Global/Quixtar - Previously two seperate companies that have merged. They sell virtually everything except for alcohol, perishable food, and weapons. There are several smaller "training systems" that buy supplies from this company and create their own CDs, books, and seminars to train you. I work with one of these training systems and I have been both impressed with the quality of the products, and I have learned so much from the training that is valuable not just to my business but to all areas of my life. In addition, my teammates are quickly becoming some of the best friends I've ever had!