| INTRODUCTION | | | | |
| | | | It is best to ensure that you can be a sales |
| A legitimate multilevel marketing business is | | | | representative with little or no more than |
| a great way to get a legitimate residual | | | | the purchase of a sales kit or demonstration |
| income that could change your life from the | | | | materials. |
| 9-5 rut to a life of financial freedom. But | | | | |
| there are many pitfalls out there that will | | | | COMPENSATION PLAN |
| make achieving this difficult. (Or even | | | | |
| illegal depending on the MLM you decide to | | | | Looking at the compensation plans of your |
| sign up with.) | | | | prospective multilevel marketing company is |
| | | | one of the best indicators as to whether or |
| There are several ways for a person to | | | | not it is a scam. Check whether the |
| ascertain whether or not a multi level | | | | compensation plan pays bonuses or commissions |
| marketing company is or is not a legitimate | | | | purely on the basis of recruiting more people |
| MLM. There are a few things that can be | | | | into the company. If it does, it is illegal. |
| checked to make sure you are not going to get | | | | It is also not a legitimate MLM if it pays |
| involved in something that breaks the fifty | | | | headhunting fees as this is also illegal. |
| or so statutes that govern this type of | | | | |
| company. | | | | A home business idea such as a legitimate MLM |
| | | | is great because of the relatively low |
| INTRODUCTION | | | | financial risk involved. This may not ring |
| | | | true to the work at home business ideas you |
| A legitimate multilevel marketing business is | | | | have seen but the good multi level marketing |
| a great way to get a legitimate residual | | | | companies will buy back the sales kit and any |
| income that could change your life from the | | | | re-sellable materials from any of those who |
| 9-5 rut to a life of financial freedom. But | | | | wish to cancel. This is actually required by |
| there are many pitfalls out there that will | | | | law so have a look at this before handing any |
| make achieving this difficult. (Or even | | | | money over. |
| illegal depending on the MLM you decide to | | | | |
| sign up with.) | | | | PERSONAL USE OF GOODS |
| | | | |
| There are several ways for a person to | | | | The FTC also rejects the idea of personal use |
| ascertain whether or not a multi level | | | | of the goods or services that you will be |
| marketing company is or is not a legitimate | | | | providing as a legitimate retail sale. But |
| MLM. There are a few things that can be | | | | the debate continues over whether or not the |
| checked to make sure you are not going to get | | | | sales to non-participants and purchases in |
| involved in something that breaks the fifty | | | | reasonable amounts are retail. There are big |
| or so statutes that govern this type of | | | | grey areas in the world of multilevel |
| company. | | | | marketing so keep abreast of the laws and |
| | | | statutes in your state. |
| TYPE OF PRODUCT | | | | |
| | | | TRAINING |
| One of the ways to separate the legitimate | | | | |
| MLM from the scams is by looking at the type | | | | Probably the single best way to ascertain |
| of product that the multilevel marketing home | | | | whether or not a company is a legitimate MLM |
| business will provide. Many multilevel | | | | is to look at the training that will be |
| marketing home business ideas work on the | | | | provided in the way of sales and recruitment. |
| principle that they will be charging way too | | | | Any company worth its salt will want to have |
| much for the service or product they will | | | | people who know what they are doing. So they |
| provide. So check that the company is | | | | will provide training to those who have |
| charging a fair price for their product. Also | | | | little or no idea how to sell or market a |
| check that you can become involved with the | | | | product. |
| company without having to pay for a huge | | | | |
| amount of inventory. This is also the way | | | | Also, having a clear idea as to what you will |
| that many scams operate, on the idea of | | | | be doing is important in choosing a work at |
| selling to people who think that they will be | | | | home multilevel marketing business. It is |
| selling in large volume from the get go and | | | | astounding to see how many companies do not |
| not caring what happens to the investor after | | | | stipulate whether or not you will be in a |
| that. If you have to invest thousands in a | | | | selling, supervising, distributing or |
| multilevel marketing idea then it is best to | | | | soliciting role which is required under |
| head in the other direction fast. | | | | federal law. |