Being able to spot which MLM business opportunities are scams and which ones are legitimate is a priceless skill to have that will save you tons of time and thousands of dollars. When researching MLM companies, be sure to keep an ey out for these 7 MLM red flags so that you can feel 100% comfortable with the company that you decide to partner with:

1. First and foremost, be sure to check to see if the MLM company is recognized by the Better Business Bureau (BBB). If the company does not have the stamp of the BBB, then I would be a little cautious about moving forward with them.
2. Next, be sure to do background checks on the founders and CEO's of the company. Do they have a healthy reputation that would worth ruining with a fraudulent MLM? Do they have a trail of short-lived, closed companies behind them?
3. Where are the headquarters of the company? Are they located in the US or is their headquarters offshore? Offshore addresses are a little fishy when dealing with MLM.
4. Take the previous red flag one step further and be extra weary of a company that doesn't provide any physical address or contact numbers. If you see this, walk away.
5. Find out if payments are only accepted with check or money orders. If this is so, then you should be asking yourself what kind of MLM company doesn't accept credit cards? Sounds like a scam to me.
6. Warning: If the company does not have a tangible product, then that is a good indication that the company is some sort of fraud or scam just looking to take advantage of people. The product or service is usually the reason that the company has decided to use the MLM platform. It doesn't matter if it's a juice or vitamin or technology service or magic chocolate, there just needs to be a product that provides some benefit to the public. So, does the company that you're researching offer a product that will provide a benefit to its customers? If not, then walk away.
7. The last red flag has to do with a minimal or non-existent refund policy. If the company doesn't offer anyway to get your money back especially if you're unhappy with the product or service, then that's a serious red flag and whoever is behind the company is after your money.