Multilevel Marketing companies have long prompted immediate skepticism and accusations of fraud. Fortune Hi-Tech Marketing has been in business since January 2001 and has not escaped the stigma. This article will discuss and clarify the allegations of fraud and anger aimed at these companies and why.

The Better Business Bureau of Central and Eastern Kentucky does not list Fortune Hi-Tech Marketing as a member on its website (www.lexington.bbb.org). As of March 2010, the Bureau has graded the company a B- business rating. According to the website, the size of a company, volume of business and the quantity of transcations made by the customers directly impact the amount of complaints being made.

In the past 36 months there have been 39 complaints received for this company. In the last 12 months, the total has been 16. To keep this in perspective, Fortune Hi-Tech Marketing brings 400 to 500 new representatives into the company every single day. This number of complaints is actually quite small considering the number of FHTM representatives.

In December of 2009, North Dakota's Attorney General's office filed suit against the company for alleged violations of consumer fraud law, transient merchant law, solicitation sales law, and the North Dakota Schemes Act. By January 19th, 2010, just three weeks later, Fortune Hi-Tech Marketing assured voluntary compliance with the North Dakota Attorney General's office.

Both violation of the law as well as admission of guilt regarding unethical solicitation by FHTM was never proven. Furthermore, the voluntary agreement that was established ensures that Fortune Hi-Tech Marketing is legally able to do business in North Dakota state.

Pyramid Schemes, Scams, and Fortune Hi-Tech Marketing

No, FHTM does not fit the traditional definition of a pyramid scheme. Real products and services are being sold to consumers through the network of Fortune Hi-Tech Marketing representatives. These products and services include cell phone plans, internet telephone service plans, nutritional supplements and travel discounts.

Since each representative is independent from the company, it is not known if the company is making exaggerated claims of impending wealth.

The problem with MLM's is the similarities in the business structure of Multi-Level Marketing businesses and the Pyramid Schemes. The difference is that a legitimate MLM focuses more on the sale of their actual products and services, while a pyramid scheme focuses more on attaining new distributors and building massive down lines.

Spotting an MLM scam can be as simple as asking yourself if it sounds too good to be true. Is the product something that is relevant in the market today? Is the business opportunity communicated in the product or service information? Is it something people buy regularly or need a lot of? Concrete business foundations are built and founded on repeat business. Make sure the potential product is not a flash in the pan fad or an overly specialized line of goods.