Some other business opportunity schemes aren't even illegal. For example, millions of Americans have lost money in multi-level marketing (also known as network marketing, referral marketing, or direct selling). The companies that promote multi-level marketing sell participants products or services that their "independent distributors" are supposed to re-sell to others. Participants are also encouraged to recruit more people, with the promise that these new recruits will form a "downline" who will share profits with the "upline" people who recruited them.
Some multi-level marketing companies are very large, and you might hear testimonials from friends, family, or neighbors. But please remember this: Research indicates that more than 99% of the people who join multi-level marketing schemes lose money, and most abandon it within a few months.
The Federal Trade Commission offers more information about multi-level marketing.Another type of job search scam involves identity theft. Although most jobs require you to provide personal information for a background check, don't do so without first being sure that the job is legitimate.