Whenever the economy slows, the big pitches from multi-level marketing operations (MLMs) emerge.

Clark wants you to know that MLMs can be a legit opportunity. It is possible to make money by selling products or services to strangers or by recruiting others to do the selling.

But here's the rub: You need the gift of gab and you'd better not even have a trace of shyness. You must believe in the product or service you're shilling; how it's priced; and you've got to be willing to approach total strangers with your pitch. You also need a great deal of time to dedicate to the whole process.

Forbes magazine recently did an analysis of a hot MLM of the moment called Team Leadership Development. It turns out that only 1 out of every 100 people could recoup their expenses. So you have a 99% chance of losing money if you get involved!

Again, there are legit MLMs out there -- but only a handful of people are making money.

A lot of folks get pressure from relatives or friends regarding MLM pitches. Clark recommends countering by saying, "I don't have the selling ability you do." Or you might try, "Clark Howard doesn't want me doing that." That way they're mad at Clark, not you. Don't be pressured to get involved because you feel obligated. If they're really your friend, they'll still be your friend when you turn them down. And you're stuck with your relatives!

So, yes, amid all the hype there is a kernel of truth. The brains behind Team Leadership Development is making unreal money. But the silent majority isn't making a dime. So be careful out there.