Is MLM A Scam? Let’s Find Out For Sure!

When people mention MLM (Multi Level Marketing), the first thing most people want to know is MLM a scam!

What Multi-Level Marketing is which some people refer to as Network Marketing is a strategy many sales companies use to encourage their existing distributors to recruit new distributors by paying their current distributors a portion of their new recruits sales, this is what is known as the distributors “Downline.”

Is MLM A Scam?

Is MLM a Scam?There are many legitimate Multi-Level Marketing companies the world over with fantastic products that are beneficial to the consumer, however where MLM gets a bad rep is when the MLM companies are just illegal pyramid schemes. A pyramid scheme is when money from the new recruits is used to pay people at the top. Very often you can spot a pyramid scheme from the legitimate MLM companies out there by the expensive joining fees and the vast amount of time focused on recruiting more and more members instead of investing the money in product development.

Now that you’ve seen the differences between Multi-Level Marketing and Pyramid Schemes lets take a look at the Pros and Cons of this business opportunity

Check out an even greater business opportunity than Multi-Level Marketing that’s free to get started here!


  • Low Barrier to entry.
  • Flexible hours.
  • You can begin part-time.
  • Pre-existing business and marketing plan when getting started.
  • Leveraged Income.


  • You can potentially alienate a lot of people, especially in the early stages. When starting out a lot of friends, relatives, and other people that you may not regularly be in contact with can get aggravated by your need to get them joined in on something that they’ve zero interest in.
  • It takes constant effort and energy to motivate your downline so you can make a decent income off MLM.
  • It takes a real financial commitment to get started between the joining costs and then there is the purchasing of the products before you go to distribute to potential customers.

Summary of MLM

There are many great Multi-Level Marketing companies the world over but like I was saying at the start but there also some sneaky pyramid schemes out there! All that being expressed in any business opportunity it’s important to do your due diligence, so you know full well what you’re getting into as far as the structure of the company and how it’s all set-up.

Multi-Level Marketing isn’t the only option!

With all of the talk I’ve been doing on Multi-Level Marketing from my research, I found there to be other business opportunities that are on an equal level to MLM and in some cases in my opinion far greater. One business opportunity, in particular, is Affiliate Marketing.Is MLM a Scam?

Unlike Multi-Level Marketing, there is no downline in Affiliate Marketing. No matter what the product is and regardless of the niche everyone gets rewarded equally for commissions earned when they refer a product or service through their webpage from traffic generated online that the owner of the product probably would not have found on his own.


  • Everything you do is online, so there is no door knocking or anything like that.
  • It’s completely up to you, so there’s no worrying about other people or having to motivate a team.
  • It’s very cheap to get started and in some organizations, it’s free to get started.
  • Similar to Multi-level Marketing you can begin Part-time and as your business grows you can go full-time when you get to a point where you’re potentially earning more than in your day job!
  • The world is your market; there’s around 2.8Billion people online, and that’s a pretty big crowd to sell to!

Br careful though as like with Multi-Level Marketing or with any industry there will always be frauds and cowboys ready to rip people off by taking their hard earned money and not delivering on what they promise. Affiliate Marketing is no different but there are some great companies out there for sure and if I could recommend one company to learn the ropes and achieve success the proper way by building a successful business that will last for years to come it is without question Wealthy Affiliate above all others.

Is MLM a Scam?

From my experience they are a company of integrity, it’s Free To Get Started, and it will provide you with the platform to build a solid business from the ground up. It’s my number recommendation over every other course of its kind in the industry.

To wrap it all up, I hope this post answered your question is MLM a Scam?, and if you have any questions or comments, I’d love to hear them below and I’ll get right back to you!


Stephen, owner

Stephen McGouran

Hi all Stephen McGouran here and I hope you're enjoying this post. This is my site Honest Affiliate Income and I got it started to help new people online make the proper decisions when getting an education online about how to build an online business around something they love doing! Enjoy and if you have any questions just let me know, Stephen!

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