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How Much is Too Much? Tips on How to Identify an Illegitimate Multi Level Company

Jul 15, 2008
Although there are certainly a number of legitimate multi level companies are there, unfortunately for consumers, there are more bad and poisoned apples than good ones. As such, if you wish to avoid putting your finances to sleep, make sure that you're transacting with a legitimate networking franchise before signing on the dotted line.

Tips on How to Identify an Illegitimate Multi Level Company

Most multi level companies require you to pay an up front fee which will represent your investment. This is normal, so you should be wary about those asking to join them for free as they could simply buttering you up for an even deeper deception.

Nevertheless, you're still not entirely safe when the multi level company offering you a contract is asking you for an initial investment. If the payment's substantial enough to place a big dent on your bank account then you should be very worried indeed!

Most if not all legitimate multi level companies will only require you to pay for a small sum of money to serve you as investment simply because their owners are conscious of the fact that most of their down line will be from the working class, and their main motive for establishing such companies is to help other people and not bankrupt them!

The second lesson you need to imprint on your mind is that multi level companies are not synonymous to pyramid schemes. The former is legitimate, but the latter isn't. Pyramid schemes are simply that: schemes; and they're used to con you out of your money. If you hear somebody referring or expressing doubts about your multi level company and labeling it as a pyramiding scheme, do step back for a moment and study the company with an open mind.

If it's asking for a substantial sum of money, ask yourself why it has to do so. Better yet, ask the multi level company's representative why. If the other person's pressuring you to pay right away, take that immediately as a bad omen. It's highly probable that he's pressuring you not because he doesn't want you to miss out on all the profit but because he doesn't want you to think too much on what you're about to do.

It's possible that the substantial amount of money required to join the company is perfectly reasonable, but that depends entirely on where the money goes. If the representative's unable to show credible proof on how the money's used for your interests then don't sign up for membership for that company!

If the multi level company is requiring you to sell products, make sure that they're offering you a buy-back-inventory guarantee. Most legitimate multi level companies are willing to offer their clients as much as 90% buy back inventories to show their clients that they're truly trustworthy. If your company's not willing to do that for you, do spend some more time thinking about your decision.

Also, keep in mind that buy-back-inventories are even requirements in some states so an absence of offer can immediately make a company operating illegally.

Always be careful with every transaction you make. Money's hard to come by these days, so negligence is no excuse. Be careful most especially about the contracts you're signing as you could be unconsciously signing away your life instead. Good luck on finding that multi level company!
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