Each one has to be understood properly.

Scam. Multilevel are pyramid scams. The government put regulatations in place to help prevent them but there are ways around them like only having a max of 6 tiers under someone. Dont waste your money.

I know several people who have got involved with these.

THEY ARE ALL SCAMS. Someone will make money, but it will not be you.

There are many MLM programs. I suggest that something that takes $5000 to join is a hoax. You can find out information about them from the BBB as well as the Direct Selling Association. If there is that type of investment, I'd also order a Dunn and Bradstreet report on them.

I am in a DSA company, make over $60000 per year, and it cost me about $75 to get started. They have a home office that I visited and have been in business for about 40 years.

If it smells bad or like a scam, it probably is one.

Cheers,

Mike D.

Scams

The only way to succeed in an MLM is to be the first.
Any system that relies on getting others *to compete against you* is going to fail.

The next question would be 'what do I get for my $5000?'.
If it's 'sales and training manuals', then they are selling sales and training manuals, not success.

If it's product, chances are the 'product' isn't worth anywhere near $5000.

Scam! Scam! Scam! No doubt about it.

Before you 'invest' check out - they have a list of resources regarding MLM schemes, what to watch out for, consumer complaints, and recent government action against MLM companies.

Also check out the Federal Trade Commission warning/alert on MLMs

Here are the main points from the FTC:

The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision:

Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.

Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly — and also may be thinly-disguised pyramids.

Be cautious of plans that claim you will make money through continued growth of your downline — the commissions on sales made by new distributors you recruit — rather than through sales of products you make yourself.

Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.

Beware of shills — decoy references paid by a plan's promoter to describe their fictional success in earning money through the plan.

Don't pay or sign any contracts in an opportunity meeting or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.

Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering — especially when the claims about the product or your potential earnings seem too good to be true.