You would have come across a lot of companies offering ‘unlimited income’ through their network
marketing models. This is often referred to as MLM (Multi-Level Marketing) companies where they have
all types of unique and creative ways of helping you earn an income.

Most of these MLM companies will promise you ‘unlimited’ income but you have to be careful not to be cheated into such scams as not all MLM companies are legitimate.

Legitimate MLM Company

So how do you identify if an MLM company is legitimate. The most important factor that you need to
consider with MLM companies would be on their products. A company will be doubtful if they are not
selling any tangible products. If they are only asking you to invest money and that they don’t have much
to sell, then you must be careful.

There are MLM companies which talks a lot about income and such but seldom deliberate on their
products. No doubt they have products to sell, but when you attend their talks and gatherings, nothing
much is being talked about the product. This means that they do not put any emphasis on their
products.

To know if a product is credible, you can always check the background in terms of origins, manufacturing and research. Many unscrupulous MLM companies source for cheap products through local OEM manufacturers and then claim to have a product to sell.

They usually have very little idea of what their products can do. When products take a back seat, the company is not interested in selling them at all.

Another rule of thumb that you can follow is that scam MLM companies usually use the word ‘Global’
in their company names. This is to create an illusion that the company is worldwide or international.

Although not all MLM companies with ‘Global’ in their name are doubtful, if you come across any of
them, it would be best to carry out a background check before investing any money with them.

Ultimately, the most ideal thing you should do before investing with MLM companies is to learn more
about them before starting. If their products are among the best in the industry and had won awards,
you can always verify them.

Below are more Malaysia MLM and investment guide topics:

  • Investing in Property in Malaysia
  • Investing in the Stock Market
  • Forex Investment in Malaysia
  • Investing in Gold
  • Unit Trust or Mutual Fund investments in Malaysia
  • Land Investment Scams – Are they true?
  • Usana Health Sciences Malaysia
  • MonaVie
  • Vemma Business
  • LeRoy International
  • Neways Worldwide Sdn Bhd
  • Zhulian Marketing (M) Sdn Bhd
  • Revell Global Malaysia
  • DXN Marketing Sdn Bhd

Factors to consider when you thinking of venture into MLM business

Understand the underlying principles of MLM

You sell a product and earn and commission. You also get some form of commission from your downlines.

Is MLM a scam?

A legitimate MLM is not a scam. It is purely based on the performance of the salesperson. The more you sell and the more recruits you get, the higher your income. In other words, there is no shortcut to success in MLM.

Does MLM deliver what it promises?

The hard truth is, not all that is promised can be delivered. The end result depends fully on the outcome of the hard work you put in.

What about the public perception of MLMs?

The society believes that MLM is a negative business. Bad cases reflect that MLMs betrayed friends and family members. As such, it is vital to choose names that are recognized and reputable.

Should MLM be selling tangible goods?

Yes. If an MLM company promises high returns in the short-term without selling any products, it is a scam. Always check for hidden costs before you proceed with them.