The Federal Trade Commission (FTC) warns people to take note of, and avoid, MLM promoters who: Make extraordinary claims of enormous earning potential Try to persuade people that recruiting others is where the real money lies Pressure people to get involved without learning more about the company Make it clear that an opportunity will be lost unless people get in immediately Another warning sign is seeing existing distributors who continue to buy products that they can never sell so that they can qualify for some kind of reward.