MoneyWise

Rob West

How to Avoid MLM Pyramid Schemes

December 28, 2020
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How can you tell when a multi level marketing opportunity is legitimate and not just a scam to steal your money? Today on Money Wise, Rob West and Steve Moore discuss what you need to know on the subject. 

Some (but certainly not all) multi-level marketing operations are really just pyramid schemes. They produce a return on investment for people who get in early, but at the expense of those who come in later.Usually, there’s very little actual demand for the company’s goods, so it’s almost impossible for participants to make money unless they recruit new victims. They would then get a percentage of whatever the newcomers purchase.Be brutally honest when you assess a product. Would you buy it at the offered price? Have you ever bought it or anything like it … at that, or any other price?If the person trying to sign you up says you can make a bundle without working hard, again, walk away. Every legitimate business requires a lot of effort to be successful, especially when you’re just starting out.If a pitch is geared specifically toward believers, that’s another reason to check it out thoroughly.

Next, Rob and Steve answer your questions at (800) 525-7000 and Questions@MoneyWise.org about the following: 

I am 70 years old and I am going to be selling my business for 300K. What should I do with this money?My wife and I are looking at buying our first home. My wife is leaning towards getting a traditional loan. We are 100% debt free and I’d love to keep it that way. I am thinking that I should use my skills and build a home over the next 5-7 years. Advice?My husband and I are thinking of taking out a life insurance policy on ourselves for our daughter who is dependent on us. Advice?

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About MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West

Rob West is the host of the nationally syndicated radio programs MoneyWise and The MoneyWise Minute heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


 

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