Sunday, August 15, 2010

Business Opportunity MLM-How to Avoid Getting Sucked Into A Scam

Due to the state of the economy, there are many business opportunity seekers who are considering joining a network marketing company to build up a residual income. While this is great thing, the sad fact is there are a lot of mlm scam companies out there. The last thing you want to do is sucked into one of those bad deals!

I thought I’d share with you the top three crucial things you MUST o study before you join a multi-level marketing opportunity. Skip these at your peril.

#1: How stable is the network marketing company? There are a couple of ways you can do this. You can “Google” the company management and see what comes up. You can also get a credit report Dunn and Bradstreet. You can also look at how long the company has been promoting a mlm income opportunity. This is important because most companies don’t last two years. Therefore, the more stability there is the better.

#2: Does the company sell valuable products which are backed by research? If you want to build a great team of distributors/partners, there can’t be any hype, smoke, and mirrors that the company uses to sell products. There should be validation regarding the effectiveness of a product. For instance, does a weight loss product have clinical trials done by an independent laboratory? Also, what is the home based business return policy and buy-back policy related to its products? Another good test is for you to buy the products and try them. Do you like it? Did they help you with your problem?

#3: What is the work from home’s company’s business climate? Do they want you to focus primarily on recruiting distributors, selling products and services, or both? If the sole goal is to recruit people, your scam alert should be on high!  Many times this very well could be an illegal pyramid scheme with no real product being promoted.  Plus, how is the company’s staying afloat in this scenario? Are the distributors using enough products to keep the company going? Your state attorney general will always pose the question, would you have joined this home based business opportunity if there was not a compensation plan attached to it? If the answer is “heck no”, run, run, run! So, with any legitimate mlm company, there always should be a nice balance between recruiting and selling product.

These are just a few areas to carefully research before you join any mlm company. Remember, there are a bunch of mlm scams out there and the attorney generals can’t keep up with them all. Therefore, always make sure you do your part to avoid being scammed.


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