MLM fraud prevention must be of the utmost importance When you begin to build a MLM business because you have chosen to agree to some company's contract. Some people don't really understand that, but it is true 100% of the time. You probably don't remember, but you checked a little box agreeing you read and was in agreement with the Policies & Procedures. That is requirement before you can begin advertising or promoting any MLM product. So the question is ... did you actually read and understand the Policies and Procedures to avoid MLM fraud? (Most people don't.) The P&P is the legal contract between you and the MLM network marketing company. Do you have a clue what you have agreed to? It might take you by surprise. Really, you could be absolutely shocked. There's a good chance you'll find statements (the small print) making it clear that you - the independent distributor - may be terminated at any time for any reason with 30 days' notice. This is done by MLM companies on a regular basis. They wait until you have built a substantial income, and then they get rid of you. Guess where the money you built then goes? Keep in mind, this contract was written by MLM company lawyers. Your network marketing company probably will not terminate you to rob you of your check unless they get themselves in financial trouble. But it happens. If your plan is to build a future for yourself and your family and your team, then you definitely want a MLM contract that can't kick the chair out from under you through MLM fraud.

MLM fraud is avoided by little things which really decide whether you have a chance for long-term success in any MLM business. This is going to sound pretty way-out but, trust me, it is true. One decisive factor can be whether your company owns its own software. What possible difference can THAT make, you wonder? Well, here's how it works. Most companies when they start up are looking for ways to cut costs. One way to keep costs down is to rent the software to run the company. Rather than paying a huge up-front fee, maybe they're spending $10,000 a month on the software rental. So far, so good. But there are a couple problems that can come up that can lead to MLM fraud by a company

For one thing, every compensation plan is different. They often find out too late that you can't change the software to handle compensation plan changes. So if the company finds a great new gizmo to add, it can't ... because it's locked-in by the software. And second, most of these contracts specify that the software vendor is a co-owner of the database. The result is, if your company has tough times & can't make a payment, the software vendor can rent out the database if they want ... that includes all the names of the group you have built. Incredible, but it has happened and you have an MLM fraud on your hands. You don't run that risk if the company owns the sotware.

These are just a few of the topics covered in the ebook "Success In 10 Steps" by Michael Dlouhy. Dlouhy's book is very popular with network marketers, having passed 100,000 downloads. Many have used the MLM strategies to build their business. The book was written for frustrated network marketers who haven't had the success they've wanted in the business. Obviously, that is a huge market. The frustrated networker learns many key points for network marketing success,and gets a step-by-step plan for changing their results from failure to success. The book doesn't promote any companies or products, so it has been a very popular and effective lead generation tool for a lot of people in MLM.