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.

Clark recently received a postcard in the mail from an "award verification center," which trumpeted that he won a guaranteed prize. The prizing included his choice of either a couple of cars valued at $49,000; a massive shopping spree; a luxurious vacation; or a cash award.

But when he looked closely at the postcard, he noticed the words "commercial solicitation" printed in very small type.

In order to redeem his "prize," Clark needed to call the verification center within 3 days. They would then arrange for him to receive his prize on the day of his visit. Therein lay the key. This was obviously a solicitation for selling a timeshare or something similar.

Needless to say, Clark didn't call. So when you get a similar solicitation, do not bite. Throw it away.

For the past three years Clark has been raving about Internet telephone service, also known as VOIP (voice over internet protocol). It will eventually be the only phone system used in the United States, but for now it’s still growing. Vonage is the largest of the VOIP services, and there are others including Packet8 and Skype. Well, telemarketers are catching onto the new trend and they’re creating new start-up VOIP companies and selling service over the phone. The problem is that the people who jump on the bandwagon to help sell are sometimes blinded by the promises and the idea of making lots of money. If you are asked for money to join one of these start-up VOIP sales teams, run the other way. You should not have to pay anything to get involved if the company is legit and the main priority is to sell the service. Some companies may be fronts for sales companies that are really trying to make money by recruiting fresh blood. Be careful!