Many GreenGeeks users have questions about running their websites for the purpose of running a MLM business. However; most payment prodivers don’t support these kind of businesses because, most MLM businesses are pyramid schemes. Unfortunately, legitimate MLM businesses are subject to being targeted by FTC, and other consumer-protecting companies/agencies. Everyday, MLM companies are often sued by customers who lost lots of money. For this instance, any kind of a company what you think of,–connected to any MLM schemes has been dissolved, or removed from the internet altogether. Most hosting providers don’t support MLM businesses because, pyramid schemes can lead to serious loss of money, and scammers often disguise their businesses as legitimate businesses.
Why MLM Businesses Are A Problem?
Typically, it works like a pyramid scheme. My Ally, Ethan Vanderbuilt has been writing about scams what you should avoid! And he’s been writing about these scams that are popping up on the internet. These common scams what he wrote about are the following:
- Multi-Level Marketing Businesses
- Get Rich Quick Schemes
- Money-making schemes
- Network Marketing Schemes
- Random Scams
- And Even Other Scammers
Typically, most website owners who write blogs, and other content don’t support MLM, I don’t support Multi-Level Marketing because, this is one example of a pyramid scheme.
Hosting companies may look like their hosting websites each day, but most MLM companies often go around policies what hosting providers put in place to prevent abuse of their system. However; most scammers often use money from customers to keep their servers running, and attempt to evade customer’s right to report possible scams. The another common form of MLM scams are supplements, and even other products that are part of a MLM setup.
What You Should Do
Don’t let MLM businesses use your hosting platform. Always implement easy to read polices on your website, before you enable customers to use your platform. If this is the case; take the following steps to prevent MLM schemes from popping up on your platform:
Implement Your Advertising Guidelines Page
If you host a blogging platform for your users; and you enable ads to be posted by advertisers; write your advertising guidelines page, and add the following text to your policies on your webpage, you can use this text below:
Ads that promote MLM (Multi-Level Marketing) should NOT be posted on our platform, most MLM schemes are illegal... those are pyramid schemes. In some countries, MLM businesses are illegal.
If you received reports about scammers promoting MLM businesses/products/services; remove these ads from your platform.
If you are a reseller for hosting
Expand your TOS page with an agreement for your users to accept. This is necessary to prevent MLM businesses from popping up on your platform.
If you added more policies to prevent MLM businesses from using your service, be sure to have policies in place to let these companies know about your policies. If these companies violated your policies, you can terminate them altogether. Be careful when hosting a platform for your users who wanted to host their websites.