The name pyramid sales schemes were given to various dubious multi-level marketing schemes that resemble a pyramid in their hollowness and their tendency to collapse. Fraud websites extend various lucrative offers to people wishing to get rich quicker, only to flee with the first round of collections turned in by people. Every year hundreds of fraud MLM websites, usurp the life savings of people who are in pursuit of building their own marketing pyramids.

What is MLM?

Multilevel Marketing is not an illegitimate activity in itself. It is an activity where a brand entrusts and delegates marketing efforts to other people, who in turn continue the process, till a full-fledged marketing channel is created. By incentivizing the addition of new members to the pyramid, the business optimizes its mounting marketing costs. Fraud websites are promoted by scammers who wish to fool people, by faking MLM opportunities. A fraud website for MLM does the following:

  • Coerce people to force down over priced products into the shopping carts of consumers
  • Deploy fraudulent means in overstatement of benefits
  • By not conforming to compliances and legal requirements, the online MLM soon becomes defunct, leaving its trusted allies in the lurch
  • As against it claims that unlimited earnings is possible for everyone associated MLM, the truth is that only a few at the top of the pyramid get enriched.
  • The tall claims that working hours for less than 1-2 hours a day can lead to sizeable income, are surreal, since, even in legitimate cases, it possible to make profits with MLM, only when one spends long hours of work.

Fraud websites that extend false MLM promises

Following are the tell-tale signs of fraud websites that lure people into the fake cycle of MLM, who lose their time and energy, without any material gains:

  • Fake projections of incomes earned by people in the past, which are quite in disproportion to quantum of time spent and investments made
  • Hidden terms and conditions that will conveniently shift the blame on lack of understanding of the MLM system. The ground reality is that these fraud websites fabricate a flawed system from the beginning, which can never be perfected
  • A legitimate MLM website will not ask for heavy investment. Even marketing collaterals are distributed free of cost. Fraud websites, on the contrary, ask for investment under various heads, which obviously cannot be recovered.

Fraud websites promote illegal hustling, not affiliate marketing

Affiliate marketing is a respectable and genuine marketing opportunity, where quality products are sold at affordable prices and most importantly, the marketers have freedom to sell products and services of their liking. Fraud websites for MLM instead, only promote hustling:

  • Hustling is nothing but attracting attention to sub-standard products
  • Fraud websites promote boasting and false promises that can put in your reputation in question, even among friends
  • Hustling is the promotion of exorbitantly charged products, which possess none of the genuine features that they claim to. It is like making super profits by taking advantage of the emotions of the buyers and by exaggerating the after-sale benefits.