This presentation and video link will provide information on how to avoid being pulled into Multi-Level Marketing Scams https://www.youtube.com/watch?v=KMxcuH9C7PE

1. How not fall for
marketing/pyramid scams
By: Paul Young, CPA, CGA

2. What is multi-level marketing
• strategy in which the sales force is compensated not only for sales
they generate, but also for the sales of the other salespeople that
they recruit. This recruited sales force is referred to as the
participant's "downline", and can provide multiple levels of
compensation

3. Signs
• Fancy House –
• Fancy Clothes
• Flash moneys -

4. Why are Multi-level Schemes difficult to turn
profit
• Supply Chain
• Complication of supply chain, i.e. ecommerce and brick/mortar retailers
• Competition
• Consumer products is competitor. Resellers are competing against companies
that have more money/distribution.
• New product updates and/or warranty are difficult to managed
• Pricing
• MLM has to price competitive
• Marketing starting
• Brand Recognition – Does the company have brand Recognition

5. Compensation
• You can make lots of money? (99.9%) of MLM schemes faile
• Over exaggeration of product – key words “Best product in the
market” or “product will sell itself”
• Use of high pressure tactics including sex appeal or other methods to
entice people to sell the product

6. Overall
• If something is to good to be true then do not believe it
• Research the company and product including owners/manager
• There is no such thing as easy money.