How to Spot a Scam

Wednesday, January 7, 2009

Multi Level Marketing Business

It is sometimes difficult to distinguish legal and reputable MLMs from illegal pyramid or Ponzi schemes. MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses.

In the coming year, we are going to focus on the gray area that many of these so called " sports marketing" companies operate in. These businesses all have common elements, which include:
  • 100% Commission Jobs
  • Business to business solicitation (most often uninvited)
  • Eventual door to door sales (a suprise not mentioned in the "interview" process)
  • Promise of promotion within 6-8 months
  • Top Performers get to "open their own office"
  • The expectation of using your own car and gas on a daily basis with no expense account or reimbursement.
  • 65-80 Hr. work weeks with $300 or less take home after taxes
  • Promise of Sports Marketing (usually requires selling coupon books door to door)

As a final word, we encourage people to stay clear of any MLM business or its practices. There are better ways to earn a living, and better ways to start your career. MLM jobs are not about living life and enjoying it-its just getting by. Its not about money -but it is about being happy. Seek a creditable company -find one that is going to pay you what you are worth. Commission is not bad-but find one that you can actually make money on.

Business to Avoid:
US Marketing Alliance (USMA)
9227 Haven Ave. Suite 220

Rancho Cucamonga, Ca. 91730
Wanis Naguib
Phone: 909-483-3000
Fax: 909-483-3019

1 comment:

Anonymous said...

I recieved an email from a Leo Chung who was interested in my item on Craigslist. He had three email addresses the first was ( ) the next was ( ) and the third was ( ) I think this is a scam in process. This is straight from his email to mine; "Thanks for the quick response,I'll be sending you a check via my bank for the cost of the item.because of the nature of my job,I'll not be available for the pick-up of the item, with this,i will be sending some one come pick up of the item on my I'll like you to provide me with the following information so as to notify the payment for the item.
1.Full name to be on the check
2.Home or work address (Ups doesn't deliver to P.O Boxes)
3.Phone number
4 The final price As soon as you have cashed the check I'll make arrangement with my mover concerning the picking-up. Pls do me a favor of removing the Ad from CL as I'm committed to buy it. Have a nice day.

Leo "
I knew something just wasn't right about his requests and actions. Please post this name and emails to the scam blog so no one gets scamed.