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Making money and avoiding scams

scams scams

So I was on Facebook last night when one of my contacts, Jay Torry, posted the following message.

jay torry fb post

jay torry fb post

Wow! The list I had to pick from was endless, but I was only asked for 1, so I left a comment saying Traffic Monsoon of course, as that’s the most recent I have heard of that was busted.

The thread however sparked a bit of conversation. I was reading comments that all MLM’s are scams that collapse, I was reading comments about mainstream corporations that collapsed, and and overall just lots of misinformation.

Avoiding MLM Scams

At one point, Jay Torry suggested it would be a good idea to make a bulleted list to help new marketers avoid mlm scams.

I told him I have done so many times before and would be happy to create something for him, which is where this blog post topic came from. However as I kept reading, I realized avoiding scams won’t help most people with the real issue at hand, making money.

So instead of just creating a bulleted list, I have decided to take it a few steps further and not simply tell you how to avoid scams, but tell you how to actually find the right companies to make money with.

The golden rule

The golden rule

First, there is truly only one rule anyone should ever need to understand to avoid scams.

This is THE golden rule to avoid scams.

Its single most important thing you can learn and if you follow it you shouldn’t ever fall victim to a scam.


Seriously I cannot stress the above rule enough. If you come across some plan and you have to study the plan and figure out how the money is distributed, don’t join.

Complicated plans, are always scams.

If you do understand where the money is coming from, then you should know if its a scam or not. However here are a few questions to ask yourself just in case:

  1. What is the product that is for sale?
  2. If there is no product and you are instead being paid simply to refer other people and get them to pay, its an absolute 100% scam. This is the absolute defining factor for all MLM’s. If there is no product it is a scam. This includes but is not limited to cash gifting programs, money matrices, high yield revenue programs, and countless other business models. Always look for a product first!

  3. Is the product sold to the public at large?
  4. If someone has to join the business to access the product, its absolutely a scam. Think of Avon as the prime example. You can purchase makeup from Avon without ever being asked, recruited, or joining anything. If an MLM requires you be a member to access products it is a scam.

  5. Is the product a physical product?
  6. If the product is not a physical product, its a scam. Seriously I cannot stress this enough folks. Advertising, is not suitable for an MLM model. Ad packs, are not suitable for an MLM model. Services are NEARLY always not suitable for an MLM model (web hosting, and domain names are the only exception I have ever found to this rule).

In terms of MLM scams, thats all there is to it. If you follow the above 4 rules, you should never fall for any sort of MLM scam again.

Finding Legit MLM Businesses

To find legitimate MLM businesses is actually a lot easier than anyone in your social stream wants you to believe. In fact, you can join legitimate MLM’s risk free. Its all about how much effort you put into them as to how much return you will get from them. However anyone who fails to make money in a legit MLM business, is not the fault of the MLM.

Finding legit MLM’s is as simple as doing your homework. Don’t join things pitched at you. Go out and do research and find the MLM that best suits you and what your interests are. Instead of falling for the pitches you see made by others, go and look for the lists of the top 100 most profitable MLM’s of the year. Go find the longest running MLM’s. Go research the most successful MLM’s.

Here is a place to help get you started: Top 100 MLMs – Stats not Opinions

Avoiding Investment Scams

investment scams

investment scams

Investment scams are everywhere these days. Its hard to be a marketer and not know of some investment scam or another.

So I am going to share with you all the facts of avoiding investment scams because believe it or not, its a lot easier than most people seem to understand.

The simplest way to identify an investment scam, is to figure out if its trying to play on your emotions. ANY BUSINESS THAT TRIES TO PLAY YOUR EMOTIONS IS A SCAM.

What does this mean?

It means if a business tries to invoke a feeling from you, its a scam.

If they try to make you feel like you are missing out on something, if they try to make you feel like time is urgent and you must act now, if they try to get you to join using large friendly images without lots of details on what you are actually investing in its a scam!

The next simplest way to identify a scam is in fact incredibly easy.

If the business promises a return on investment, its a scam.

Its that simple. Anyone that guarantees you anything in business, is a scam. There are no guarantees in life. If you want guarantees Walmart is hiring.

Moving on, the question to ask yourself is, does the business in question call itself an investment.

If a business defines itself as an investment opportunity, it must be registered with the SEC, or at the very least have filed with them.

Its a requirement of US law for all investment based businesses to register with the SEC.

If they are not registered, they cannot sell to US citizen by law, no matter what country the business may be located.

If they do not sell to US citizens its not a good investment.

If they do, search the SEC website to find out if they have filed. If they have not, its a scam.

The final way to figure out if something is an investment scam, is also the most popular way to define and investment scam. Its not as easy because it takes having a bit of knowledge about scams.

The final method, is being able to identify scams by business model name.

The business models that investment scams call themselves, fall under many names, but I will try to identify as many as I can.

  1. HYIP (High Yield Investment Program)
  2. Revshare (Revenue Share, Ponzi)
  3. Cash Gifting
  4. Straight line Compensation
  5. One Up Compensation
  6. Matrix
  7. Anything using the word Ad Pack
  8. Reseller Software
  9. PLR Software
  10. MRR Software

Finding Legitimate Investments

There are only 4 types of legitimate investments on the internet. Most of them are not relevant to average people.

Angel Investments

The first type of legitimate investment is an angel investment. Angel investors generally are private investors that invest $50,000 or more into a business.

The average person isn’t looking to spend that kind of money on an investment and if they are, its never something you will find on a business advertising on a website.

If you are looking to do an angel investment contact me privately.

Forex (Foreign-Exchange)

Honestly, Forex is very legit. Its also very hard to do and you will almost certainly lose your money. Truthfully, don’t do it. I have met 3 people in my life to be able to do Forex trading long term for profits. Its not easy. AVOID IT!

Stocks and Penny Stocks

These are clearly legit. If you feel the urge to play the stock market, it takes a lot of money to make a lot of money. If you are going to do penny stocks, learn to read charts.

It takes a year or so of day in and day out studying to learn how to read penny stock charts well enough to successfully trade but it most certainly can be done and doesn’t take lots of money to do

Crypto Currency Investments

Before getting involved with crypto currency investments, if you live in the USA you should read IRS Virtual Currency Guidance.

Crypto currency investments are the new kids on the block and they fall outside the scope of any laws except tax laws. There are many Crypto currencies to invest in. Some are good investments and some are not. Some are defined as pump and dump coins, and others are not.

There is no guarantee when you make such an investment. However countless people have made tens and hundreds of millions investing in Crypto currency. My recommendation is always read and research the coin and what its plan is.

If you opt to do Crypto investments ask yourself the following before investing in any coin:

  1. Why does the coin exist
  2. Do the coin developers have an actual marketing plan or strategy to grow the coin and its distribution?
  3. Is the coin part of a MLM? (avoid if so.. not a physical product)
  4. Does the coin have any long distance plans after the current plans are achieved?
  5. Do the developers have dreams of replacing bitcoin? (avoid if so)


If you are interested in seeing what a legitimate Crypto currency investment plan looks like, I would strong recommend looking into the plan we have created at Marketers Cooperative.

You can find a copy of our Crypto investment plan at the following link:

So overall the real advice to take away from everything on this post, is the Golden Rule. Just don’t join things you don’t understand. Research everything until you understand and then you will know exactly what not to join.

Bruce Bates is the original owner of the site where this blog originated. He is also owner of the marketers cooperative. He has been marketing for nearly 20 years and is well known in various marketing circles and social circles.

3 Comments on Making money and avoiding scams

  1. Great article Bruce
    I really enjoyed your honesty and the years of knowledge and service you provide..
    I’m very pleased to call you friend and highly endorse your professional insights on major topics you tackle.

  2. Great Article Bruce. You pretty much covered the entire spectrum of the industry with that.

  3. My Golden rule:

    If it sounds too good to be true, the it isn’t!

    Golden rule of my parents:
    Lies have short legs!

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