MLM opportunities alone are not bad.
In fact they are a very good way to earn money at home.
Unfortunately, due to the high income associated with MLM opportunities, there are some unscrupulous companies that give the industry a bad name.
These companies concoct a scam, disguise it as an “incredibly successful” work-at-home or MLM opportunity, and start their own company to make money…by diverting your hard-earned money from your pocket to theirs.
It’s not right… and you need to know how to protect yourself.
If you know a few things to look out for, you’ll be able to distinguish genuine MLM opportunities from all the work-at-home business scams out there.
Here are some tips:
Beware of pyramid schemes
A main reason why the reputation of work at home and MLM companies has been tarnished is pyramid schemes.
Pyramid schemes look like MLM opportunities by copying the MLM concept of sponsoring others and building a network. And, just like a real MLM opportunity, each person who signs up for the network has to pay to join the company.
But that’s where the similarity stops.
With a pyramid scheme, there is no product to sell – “selling” the opportunity is the only way to make money. The only intention is to attract as many people as possible to the network.
The goal of the company is for people to recruit other people…recruit other people…recruit other people…to continually collect more and more money that flows to the top of the pyramid…to the “organizers”. .
Make doubly sure that the MLM opportunity you’re planning to join has a real product or service to sell and that you’re getting paid to make sales…not recruit.
What is the Membership Fee?
It is normal to pay a registration fee when you sign up for MLM opportunities, but you should carefully check how much you are paying.
You can get involved with most major MLM companies for less than $200.
Now, this is not to say that there aren’t great MLM opportunities out there that require an initial investment of over $200, it’s just that they may not be the ones you choose until you have some MLM experience.
Also, keep in mind that the main goal of a work-at-home scam is to get as much money into the company as quickly as possible…and a quick way to do this would be to charge high registration fees.
The Compensation Plan
Is the payment plan for the MLM opportunity compelling?
Is it too convincing?
When an opportunity seems too good, trust your instincts and do a little research before joining.
Go to Internet forums and see what people are saying about the company and the opportunity.
If possible, meet with a representative and go over the details of the MLM opportunity. If it is not possible to meet in person, please contact your distributor or team leader by email or phone.
Most legitimate MLM opportunities have successful people who are willing to share their success and help others… through the contact information on their website or company profile.
Ask questions and seek answers.
Do some background checks
What is the reputation of the company?
How long have you been in business and/or has the MLM opportunity been available?
If possible, find out how many people are already in the MLM network and how many product sales are being made.
These are important items to know about.
It will be much easier to be successful with the MLM business opportunity if your members can believe in both the product they are selling and the company that will pay them.
Without both, it will be more difficult for you to find people who trust the opportunity enough to join your organization.
Once you are convinced that the MLM opportunity you are looking for is genuine, then there is no reason not to go ahead and join the company.