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Evaluating The Multi Level Business

Aug 17, 2007
If you think that an MLM business might be for you, you will probably need some guidance in deciding which firms are legitimate and which multi level marketing companies are really disguised fraudulent pyramid schemes. Here are a few questions to ask yourself, to separate the good business opportunities from the bad.

Is the marketing and management of the MLM firm legal and ethical as far as you can tell?

Is the company well known and in business for at least two years?

Is there really a product or is this a pyramid scheme that relies for its profit the proceeds from signing up new distributors?

What are the company's history and its track record for customer service to consumers and distributors? Are you able to talk to current or former distributors to determine if they are treated well and honestly?

Is the company's product consumable, unique and of sound quality? Might I buy and use this product if I saw it available at the price this company is asking? 
Is the market for this product or service expanding or saturated? Are its prospects for growth sound?

Does the brand name of the product or products have a readily recognized name, and good reputation? Is it packaged attractively?

If the MLM company is global is your compensation plan as a distributor set up seamlessly, so you don't have to sign up more than once?

Are the products costly enough and priced highly enough that you can make a good income with a reasonable amount of sales?

What are your requirements for having inventory on hand? You don't want to get stuck with a house full of MLM products you can't get rid of should you change your mind about working for the firm.  

Is the upfront cost reasonable, and one you can afford? Are you compelled to work a number of hours you'll be hard pressed to complete on a regular basis?
If the multi level marketing firm requires an upfront fee to join you should be receiving something tangible for your money, such as advertising and marketing materials and help, and sample packs of inventory. Find out what you get for your fee.

Ask if the MLM will provide a Web page or site, or help you set one up? Whether the site is your own or an extension of the MLM firm's site, determine how easy to navigate, professional looking and comprehensive that site is and will be. What kind of technical support and bandwidth will be included? Is there an administrative tool that lets you keep track of your customers, your sales and your compensation? Is it customizable so you can change your contact information and other details as you need? Will this includes artwork for marketing and advertising? Would your customers be able to access online information about products and pricing, and a way to contact you?

Would you, as a distributor for this MLM firm, receive news and product updates on a regular basis?  
The last question you must ask yourself before you decide on this firm and its products as your MLM of choice is do you like and are you enthused about its product or products? In other words, can you believe in it enough to sell it convincingly?
About the Author
Dustin Cannon is owner of JustArticlesVIP.com and writes on a variety of subjects. To learn more about this topic Dustin recommends you visit:
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