Ways To Spot A Legitimate Mlm Opportunity

MLM has a bad name among the general public, and many people are quick to label all MLM companies as a scam

. Many network marketing companies are legitimate businesses, but unfortunately there are some companies out there who are unscrupulous and who do operate pyramid schemes or scams. This article will show you how to spot a legitimate MLM opportunity and a scam.

Savvy marketers who have been in MLM for a number of years know how to spot scams a mile away, but newcomers to the industry usually do not. So before you clear out your savings account to invest in an MLM company, take a look at this list.

First, research the company. Never sign on to a company the first time you hear about the opportunity, especially if you have never heard of the company before. Go home, break out the computer and do some research. Find out how long they have been in operation. Are they profitable? What is the general buzz. Never sign on to a company who has been in business less than three years. Scams won't last that long, as they will collapse on themselves. You only want to invest with reputable companies with long track records of success.

Next, find out how you get paid. If the only way to make money is by referral, avoid the company as it is most likely a scam. True MLM companies focus on selling their products and building downlines. Also avoid any company who promises they will build your business for you. This has scam written all over it. MLM is a business and in business you have to do the work yourself. Remember, the old adage says it best, if it sounds too good to be true, it is.

Next, consider the start up fees. Legitimate, legal MLM companies have low start up costs. Scams will have high buy ins and very large, mandatory, up-front inventory costs. Front loading inventory is a huge sign of a scam.

Ask about training. Legitimate MLM companies offer free training and access to large online libraries of materials. MLM scams typically charge a lot of money for training programs and usually require you to pay for your travel expenses to get there.

Finally, is there a product? This seems like a simple question, but most every MLM scam operates without a product. Again, do your research. Even if they show you products at a meeting, go home and search for reviews. Now, many savvy scammers will set up fake sites, so dig deep into your search results. But if you feel the slightest bit unsure, avoid the possible scam and move on to a legitimate MLM company.

by: Neil Ashworth

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