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Is It A Legitimate Multi-Level Marketing Opportunity?

Nov 20, 2007
When investing in a multi-level marketing opportunity, it is often difficult to weed out the legitimate businesses from the scams. Companies offer unlimited profits for minimal effort with 'multiple streams of income' and 'passive income' becoming the new industry buzz words. New opportunities are constantly arriving in your email inbox, your home mailbox and on your late night television stations, how do you find a worthwhile multi-level marketing business opportunity? You look beyond the sales pitch and examine the facts. There are several characteristics that are universal to every legitimate business opportunity.

Legitimate businesses are honest and up front about the details of their opportunity. They clearly explain what is expected of you, what the earning potential is and what it will cost you to get started.

If a business does not have unbiased testimonials, public financial statements or some form of guarantee, they are most likely not a business that you want to be involved with.

Fly-by-night businesses crop up every day. A legitimate business opportunity should have an actual street address and a working telephone number. Companies that advertise that you are getting a great deal by getting in on the ground floor of the opportunity should be researched extensively before joining. These here today, gone tomorrow companies set up shop with the goal of getting money quickly from unsuspecting entrepreneurs then closing up shop and leaving with your hard earned cash.

Is the business' product/service so revolutionary that there is no proof that there is a market for it? Sales are the bottom line of any business and if there is no interest or need for a new product/service, sales will be slim.

Does the company have a proven track record and are there opportunities to gather unbiased information from people other than those who will profit from your decision to sign up? Testimonials can be fabricated and bad reviews can be conveniently lost. Getting firsthand knowledge from an impartial individual is always best. An excellent venue for compiling this type of information is one of the many online business forums.

If the deal seems too good to be true, it most likely is. How many times have you heard that? Well, it is and will remain true. Why would a business owner give away his money or time for free, to a complete stranger? Multi-level marketing companies with a free sign up often have hidden costs that are incurred soon after signing a contract. Always get the bottom line figures before signing up. Hidden fees, extra charges and incidentals can all add up to a rather large sum. You have to consider if the opportunity is worth your time or if you will just be wasting your money.

How many hours a week will you have to invest in your business? Multiply this number by what you would consider to be a reasonable hourly wage for your time and determine what your profit margin should be at the end of every month to help determine if the profit potential is worthwhile.

While some diversity is good for business, a company that dabbles in unrelated products or services is not likely to succeed. The concept of multiple streams of income is great in theory but very few entrepreneurs can actually make it work.

These eight characteristics should be present in any worthwhile multi-level marketing opportunity. If even one quality is missing, you may be investing your money in a scam. 'Buyer Beware' applies to the business world as well as consumers. Invest your money in an MLM opportunity that displays all of the characteristics of a legitimate business.
About the Author
Mike has been online since 2004. He can show you 3 simple steps to turn your Internet Marketing Business profitable. http://www.profit-unlimited.com/info/l/pips_one. Mike also publishes "Profit-Unlimited Team Newsletter". Take a look and receive some bonus ebooks.
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