What to do when things don't go as planned. How to prevent a project scam

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According to statistics, many start-up projects close without even existing for 1-5 years. Knowing this, networkers are very wary of new and unknown MLM companies. In the Russian-speaking world, one-day companies are called "scam" or "hype". In this article, we will tell you in more detail what this is and how to prevent the failure of your business.

What is a scam
Scam (skam) in translation from English - a scam and fraud. In the network business, this concept is associated with companies that delay or completely stop making payments, violate the terms of cooperation twitter data and obligations to partners, clients and investors. In fact, scam speaks of the death of the project.

In the Russian-speaking space, such a reputation is firmly attached to investment hype projects and pyramids. Such companies most often use a pure matrix type of marketing , develop rapidly and close within a year.

For more details on the differences between honest MLM projects and pyramid ones, read the article Network Marketing VC Pyramids

Rarely, but there are situations when no one loses money - the project founders keep transparent accounting and gradually pay off their debts. But such organizations are an exception to the rule. Usually, the closure of a company entails significant financial losses for its investors and partners.