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How to Identify Rotten Apples among Network Marketing Companies

May 19, 2008
Network marketing companies may seem to be a dime in a dozen today, but that doesn't mean you can just approach any one of them and expect yourself to be a millionaire in no time. If you want to secure your financial future through network marketing, you need to be a part of company that's trustworthy, reliable, and able to guide you all the way to success.

How to Identify Rotten Apples among Network Marketing Companies

It is completely untrue that there are no network marketing companies today able to offer people with legitimate earning opportunities. But, of course, thanks to the proliferation of illegal network marketing firms, the good ones tend to be buried underneath.

If you want to find out whether you're dealing with a rotten apple or not, here are a few factors to consider.

Place of Business

Those that operate legitimately always have a primary place of business. It may be the 24th floor in a high-rise building, a large office downtown, or even a office-warehouse around the corner. What's important to determine is that their office address is something they've registered under their business you can confirm this with your local government and know exactly how long they've been there.

If the company has been around for ten years, for instance, but it can only provide you an address for its current office, that's when you should start having doubts. Offices that constantly move around are rarely good news; if you're dealing with this kind of network marketing company then you're probably dealing with a rotten apple, too.


It's better to trust a network marketing company that was personally referred by someone you trust and have known for a long time. If none of your family, friends, or colleagues can, however, recommend a network marketing company for you then look for a company that's endorsed by a well-known and credible personality instead.

Avoid risking your hard-earned money on investing in network marketing companies whose histories and ways of doing business are completely unknown to you.

Compensation Program

Companies that can be classified as comparison apples are those with deceptive compensation programs that ultimately benefit the management alone but not the marketers themselves.

When evaluating a network marketing compensation structure, try to read between the lines. If someone is making a presentation to you, don't be afraid to ask questions. Always ask for examples and explanations as well. A lot of ideas sound good on theory but produce disastrous results when applied in real life.

Also, look for something that's flexible and diverse. The more options you're offered, the more chances there are that the compensation program has been truly designed to provide mutual benefits for the company and its marketers.


Another quality that rotten apples in the business commonly display is the way they treat the idea of transparency like it's a contagious disease to avoid. Transparency requires companies to show all pertinent evidence to prove that they're not doing anything suspicious. It would include but is not limited to showing your financial documents and other materials that can prove its legitimacy.

As a marketer, you can rightfully ask how the company survives and how other marketers generally fare. If they refuse to show you anything then it's certainly reasonable for you to doubt what they're hiding.

But if the network marketing companies you're interested in joining don't show any of these traits then good. Congratulations are in order because you've find a genuine moneymaking opportunity!
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