How risky are network marketing ventures?

Question by rosalind: How risky are network marketing ventures?
My aunt is constantly trying to get my family and me to invest in network marketing businesses. At first the idea of it sounds good. They are well thought out and seem to have the potential to be a lucrative financial move, however, my aunt and her husband don’t seem to make any money themselves. At the end of the day my conscience screams “pyramid scheme” and that can’t be good. Am I wishing upon a star by getting on this bandwagon? Or are my voices inside my head correct in telling me that this could lead to nothing or even worse, disaster?

Best answer:

Answer by Gaytheist Buddha
Most are scams.

If that is a multi-level marketing (MLM) company, save your money and avoid it. The only people making money in MLM schemes are the early investors or those who exploit enough downstream salespeople to support themselves.

Those people might insist, “How am I exploiting my downstream?” Answer: because your downstream should be allowed to buy from your upstream just like you; you add nothing of value to your downstream, but you take a large commission out of their sales.

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