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The Truth about MLM’s – What No One Tells You

From the very first time someone wanted to sell something to someone else there have been good sales models and bad sales models.

Sadly, due in large part to the massive reach of the internet, some nefarious folks have used some pretty nasty schemes and called them MLM’s.

The truth is that Multi-level Marketing is actually a legitimate way to sell goods. By creating a network of people MLM’s create a sales force. The fact that people who get into the MLM early in the game tend to have a better shot at making a great living is due, in part, to that particular company’s inability to adapt to market changes.

There is a lot of bad press that has followed the MLM model around the net. The thing is, the legit companies are easy to spot, if you know what to look for.

The very first thing you should do while conducting your due dilegence into any business opportunity (online, offline, off shore, whatever) is to search for that company in the Better Business Bureau database.

The BBB has no affiliations with the companies they report on. They are simply a reporting service that reports on fraud or illegitimate business practices. So, if you’re thinking about entering the world of selling through an MLM model, look them up. It takes about 10 seconds and could save you a ton of time and money. (not to mention saving face if the company that your friend wants you to join ends up being a ponzi scheme 🙂

If you find that the company is legit you can move along in your research. Don’t just take everyone’s word for it.

Here are a few other things to look out for:
  1. What’s the company’s track record?
  2. What products does it sell?
  3. How does it back up claims it makes about its product?
  4. Is the product competitively priced?
  5. Is it likely to appeal to a large customer base?
  6. What up-front investment do you have to make to join the plan?
  7. Are you committed to making a minimum level of sales each month?
  8. Will you be required to recruit new distributors to be successful in the plan?

I would add to this list that it’s a good idea to determine the sort of company you’ll be working with as well. Companies that make grandiose claims about massive income potential with very little work are quite likely, quite frankly, baloney.

Due to the nature of online selling the parent company has little control over claims made by distributors or promoters. So, if you “really” want to learn about the company you should head over to their official site. Read the information put out by the actual company itself. If they are authentic, they will not have a home page splashed with claims like “make millions online in 5 days”.

I think though that the best advice anyone could give about MLM’s and selling a product online is to use your noggin. That’s right! In your head you must have a feeling whether something is legitimate or not. If you go against your better judgement and enter into something that your head tells you (and your research tells you) is shady then you really have only yourself to blame.

There really is no way to make a ton of money in only a month online. There are lots of claims that it’s possible but those people that are making great money have been setting up systems for many months. I have no doubt that some of them make what they claim. I do, however, doubt they do so in their first month of working online.

Learning the business of a home-based, online career is not easy but it is possible. There is a lot to learn and you need to give yourself the time to learn it.

September 13, 2010by jax
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