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Is your "business" based
out of one of these?
A UPS Store?
Image via CrunchBase |
Rod Cook, who runs the MLM Watchdog website, has been a long-time player in the MLM scene, and he's well known for his blunt style when it comes to suspicious schemes. His website reflects its style, in that it looks like it came from the 1990's. None of the flashy menus or such.
He has a
list of 12 questions you should use to check into any MLM company you want to join. It's a good list, but there's a few items I don't agree with. Let's take a look at his test, and see what we can learn from it.
1. SIMPLEST MLM DETECTIVE INVESTIGATION: LOOKING FOR THE BEST? Get into the "BRAIN & PUSHBUTTON" When you are look for the Best or Good MLM or Nework Marketing Company! A friend told you that MLM Company XXX is the very best. First Look at the MLM Company’s website. First GOOD suspect clue would be no street or city address, worse yet, only an email address, no phone number. Then look for the pictures and names of the owners of the company. Not having these on a website is a quick absolute reason NOT to join. Also A GOOD TOOL in your search for a good or the best MLM - Networking company:
A. DRIVE BY THE OFFICE - Wise, seasoned MLM distributors doing their good Due Dilligence Investigation will use Google street view to save gas. Go to Google street maps and do a good electronic drive by!
B. A really good clue the Picture on Google above not the same as website = run! Address = trailer house or home? That is a 911 = Run!
This is a good tip, though I do have one thing to add... Search the address and make sure it's not something offered by Regus as a "virtual office". In general, if it doesn't have a suite number, it's somewhat suspicious. If it does have a suite number, make sure it's not a Fedex or UPS Store.
Also keep in mind that increasing number of these shady companies are registered overseas. Cyprus, Malta, British Virgin Islands, Belize...
Then search the owner's pictures through TinEye and/or Google Image Search and/or Bing Image Search to make sure it's not some random photo stolen by scammers to look legitimate. Once I found some scammer who used picture of Pepsi's CEO as some random "testimonial" picture.
2. RUN FROM A COMPANY TAKING ONLY BANK WIRES, MONEY ORDERS OR CHECKS: Use your MLM Detective Investigative "BRAIN." Only use a Good credit card that will accept charge backs. Returns? Good honest companies allow refunds within 60-90 days (8 states require a year)! It is NOT GOOD to allow deductions from your bank account unless the company passes every test on this page for a Good or the Best MLM - Network Marketing Company!
A. Money by Fedex - UPS only? Yikes! Best Scam Time not any good MLM! A good trained MLM Dectective will tell you the scam artists do this to avoid USPS Postal Fraud charges! Many good MLM - Network Marketing have found that U.S. Postal mail is the best way to ship products!
B. A PMB (private mail box) address (in a mail box store) is a good indicator of dodging USPS Postal Fraud Investigators = 911 run a SCAM! Never for a good-best MLM Company.
Just one thing to add... Watch out for people who insist on getting paid through odd payment processors such as Liberty Reserve, Payza, Solid Trust Pay, or some payment processors you never heard of... or worse... Western Union money transfer.
Also, anything that insists "no refund" is automatically suspect.
3. GOOD EASY MLM INVESTIGATION TRICKS: Next in your search for the Best - Good Company MLM Detectives will go to the Internet and enter the following into one or two of the major search engines:
A. The MLM Company's name (owners too) and the word "scam". Go through two pages! Look for forum message comments for legitimate complaints (see D below). A good hint is that some sites have phoney information on them.
It's standard SEO tactic now for someone to register a domain name, and also the "sucks", "scam", "fraud" related domain names just to make sure nobody else does. I've even seen a few scams that even created their own "verified authentic" websites, "review" websites, and of course, the "___scam" websites that insist it's not a scam. So you'll have to go through 5 to 10 pages of results just to make sure the comments you should be reading wasn't buried under those "white noise" SEO techniques.
B. Then do the same for "complaints, lawsuits, and news articles archived on search engines. In this day and age of lawsuits good MLM Companies will have a lawsuit or two. If they have a lot of MLM lawsuits this may NOT be the best MLM - Network Marketing Company to join. Another good trick is to use the GOOGLE searchengine on this website (NOTE: mlmwatchdog.com, not this blog) for a good search of MLM lawsuits! What is good about it is that it is fast and we have a good collection of lawsuits.
C. Another good trick check who registered the website domain of any new company claiming: amazing, incredible, proprietary, never seen before in the universe, revolutionary, products, services or technologies! Check Whois.net for the domain lookup (WEBSITE NAME). MLM Companies with good offerings would register a name 6 months to a year ahead of time (shows good planning).
The date is a good point. However, earlier or later date does not add any credibility.
A lot of these shady deals use "private registration" where the domain is registered through a proxy so the WHOIS records show nothing useful.
D. A warning on MLM due diligence for MLM Researchers for good MLM's! There are sad sites and forums that are unfairly negative toward all MLM - Network Marketing companies. Ignore these "Anti -MLM Zealots" and only look for appropriate information. A good MLM Detective will ignore 99% of their B.s. in their search for A Good or "The Best" MLM Company.
There are people out there who believe ALL MLM are illegal. They are just as ideologically dumb as the people who believe ALL MLM are legal. There are legal ones, and there are illegal ones. That's why we're giving you the tools, such as what really separates pyramid schemes from Multi-level marketing, so you can make up your own mind.
4. GOOD SECRET DUE DILIGENCE TOOLS: Compete.com and Alexa.com are good Internet tools because it can show you how much traffic a Best or Good MLM Network Markeing company is getting, by individual hits. The person you talked to may be ignorant themselves. This trick for finding the Best or a Good MLM only 1 out of 10,000 know about. If the traffic is headed down? A GOOD indication? Under 2000 hits on a decreasing curve and this is supposed to be a Good or Best MLM Company? Tell the person bye! Go to Compete.com or Alexa.com to see their traffic
CLICK HERE: TO JOIN GOOD MLM COMPANY
I do not agree with Rod Cook on this one. Both are easily manipulated through botnets and viral buzz marketing. This is best used as a negative signal (i.e. low traffic? forget about it!) It should not be used to justify the legitimacy of anything. Many scams, including TVI Express, have tried to use Alexa ratings as "proof" they are going strong.
