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5 Warning Signs That Multi-Level Marketing Opportunity Is Actually An Illegal Pyramid Scheme

We’ve all gotten that “hey girl” message from some random girl we went to high school with. But it rarely seems that she’s really trying to reconnect and reminisce. Instead, she’s offering you a great “opportunity” to make a ton of cash and retire by 30. Wouldn’t that be nice! But no, this casual meet-up is usually a multi-level marketing business sales pitch aka an illegal pyramid scheme. A lot of women try to pull others into pyramid schemes on social media by leaning into the #girlboss persona. 

If their MLM is a legitimate side hustle, then that’s great! But a lot of times these “opportunities” are just making money off of recruitments rather than selling a good or service. According to Texas law, making money simply by offering introductions or providing an opportunity is illegal. If you’re caught doing this, you could end up with a state jail felony which includes up to two years in a state jail and up to a $10,000 fine. So how do you avoid getting sucked into a Dallas MLM scheme? Today, A-EZ Out Bail Bonds in DFW has 5 tips to help you avoid unsavory business ventures. 

You’re not really sure what you’re selling

This is the #1 red flag you need to look out for. Reputable companies stay in business because they’re selling a product or service that people want to buy. If you have neither of those things, but you’re still being pushed to recruit new members, you may be dealing with a pyramid scheme. Real income can only be acquired through investors or sales, so take note if they’re only interested in scaling employees. Another warning sign is when their staff members write all of their reviews. 

It’s too good to be true

Whether they’re promising a bit too much money or asking you to sell miracle products, outrageous claims should send off warning signals in your head. There are a couple of issues with this element of a multi-level marketing business. First, the Dallas police could arrest you for recruiting people into an illegal pyramid scheme. Second, if you’re selling faulty or mediocre products to customers, they could sue you. 

That’ll drag your name through the dirt and could get expensive for you. Of course, A-EZ Out Bail Bonds in Dallas would do everything in our power to ensure a quick and affordable jail release so you could plan your defense, but the lawyer’s fees alone would be enough to put you in the hole. 

Someone you know is pitching you

The general sales tactic MLMs use is having their recruits target people they know. Meanwhile, traditional businesses make sales on an eCommerce website, in a store, through cold calling, or other forms of marketing. But if Haileigh from your senior history class hits you up out of nowhere and wants to share an opportunity with you, you might want to run in the opposite direction. 

They make you buy a ton of product

When you start a new job, sometimes there are a few upfront costs. People often have to buy a new uniform, laptop, or tools to do the work they’ve been hired for. But if you have to buy thousands of dollars worth of products, you might want to think twice. A lot of people get stuck in illegal pyramid schemes and can’t get out because they have so much product to unload. This forces you (the recruit) to use high-pressure sales tactics to recoup your losses or bring more people into the company. Ultimately, you may even agree to recruit more people to make some of your money back.

They can’t prove how much money they earned

Legitimate businesses record their sales, profits, and expenses. However, it can be pretty hard to prove company income when you’re not really selling anything. So if a recruiter is cagey about a business’ monetary success, it may just be best to move on to another job prospect. It’s also concerning if only a handful of people at the top of the company are making a lot of money, and everyone below them is struggling. 

Dallas Bail Bonds– A-EZ Out can get you out of jail fast

Not all MLMs are illegal, but many of them are. If you find yourself in legal trouble for misguidedly participating in one, you’ll likely be taken to a Dallas County jail. From there, an A-EZ Out bail bondsmen can help get your released but then it’s up to you to clear your good name. Call today to learn more about our affordable bail bonds and our recommendations for the best criminal defense attorneys in Dallas.

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