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