Let's first look at what makes a company a scam. There are hundreds of web sites out there that flame just about every single mlm company and label them as a scam because they have been let down over one issue, or simply did not read the fine print. Generally speaking however, if a company has directly contravened there own terms and conditions which results in them receiving payments without delivering as promised, then they may be a scam. That's not to say of course that if a company misses a monthly payment or is late with a payment then they are a scam, I am talking about a consistent and blatant breach or their own terms and conditions.

So, how do you know if a company is legitimate or not? The best place to start is Google. Simply search for the mlm company name plus the word scam (e.g. Widgets Online scam). If your search turns up several pages talking about the company in a negative way, then you should certainly do some more homework on them before investing any time or money.

One of the best websites to do your investigation on is www.scam.com. They have forums on just about every topic you can imagine, and if you are still unsure, then post your own article asking for people's opinions. Remember that the forums are fairly open, so you should not take everyone's opinion as gospel, but then again if you get 5 negative responses, and no positives, then I would steer well clear.