In Part 1 of this article I mentioned about my own experience with MLMs, what most people would call a high risk business by virtue of high incidences of scam involved. I must admit there's a difference between the legit ones that sell real products and ones that merely ask you to recruit new distributors so that you may gain commissions off their membership fees. High risk merchant providers are aware of these. They will certainly not accept your application if they learned you had been previously involved in a MLM fraud. To learn more about this topic I wrote, see Insider Tricks to Successful Merchant Application.
PYRAMID SCAMS VS. LEGIT MLMs
I was then in my college days and seeking some help for my university fees when I saw an ad about scholarship opportunity on the local paper. I contacted the number and was told to attend a meeting to find out more about it. Soon I realized it was some sort of MLM business with a variety of benefits for the members. In my desire to get the scholarship, I joined. I paid a downpayment for my fee but it took long for me to realize that the scholarship I wanted from them would never materialize. Why?
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