It’s not unusual if you are reading Internet forums or discussion boards where business opportunities are discussed, to find members posting quite often that they got scammed by an online MLM opportunity. If you combine it with the bad reputation that the network marketing industry already has it is a wonder why still people are joining multilevel marketing businesses.

But are all online MLM companies scams? And is the best solution to try to avoid getting into one of them no matter what?

Well, the truth is that many of the multilevel marketing business opportunities that operate online are nothing but disguised scams with no real product. Money passes from the one member to the other through the company that is taking a cut under the name of network marketing, when in reality it is only a ponzi scheme destined to collapse sooner or later, or get shut down from the authorities.

Another percentage of online MLM businesses while they do appear to have a product, in a closer look it is only an excuse for money to be changing hands and at some point they would be investigated and get shut down from any Attorney General. Of course, there is also another percentage that are scams by definition, as they operate for a short period of time just to collect fees from their members and then they get vanished, with their owners probably relocating to a tropical paradise to enjoy their loot.

With all those examples, it’s no wonder why someone may try to avoid Internet opportunities under the network marketing business model. But unfortunately that approach is not the best solution, as at the same time it excludes multilevel marketing businesses that operate online and are legitimate at every sense, with a lot of happy members that are creating a better financial future for them and their families. Not everything on the world wide web is a scam and by allowing yourself to fall into generalizations, by treating all as equal, you miss on great opportunities, not only in network marketing, but everywhere in life.

Your only solution to this is knowledge. You have to educate yourself on the works and whereabouts of this industry in order to know what to avoid and how to protect yourself from companies that are only after the money of the gullible. Avoidance is never a solution, nor it would be in the future in the world of business. Those who are better informed are always those that spot the best opportunities and protect better themselves from potential pitfalls.

Similarly, you have to try to be yourself well informed about the online MLM world and the whole network marketing industry in general. Investigate and seek further information than what’s available from the company before you attempt to join any opportunity.

Sometimes the signs of the dollars and marketing tactics can cloud your judgment and lead you to rushed decisions that may get proved wrong. Take your time when evaluating and never rush yourself to get in somewhere that you don’t understand well. If something is so good and once in a lifetime opportunity, it would still be a few days or weeks latter. So there is no need to skip your due diligence process and proper investigation of the multi level marketing company.