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What's The Difference with MLM?

Feb 4, 2008
Choosing an Multi-level marketing program can be quite challenging. There are many programs out there and it is sometimes hard to find one, which will work, for you. MLM has a bad name with some people, because they confuse Multi-level marketing with outright scams and ponzies. In reality the MLM business model is quite similar to that in the real estate industry. Despite the misconceptions, most MLM programs are reputable. It is important to do your research properly before you invest your hard earned money in any program - MLM or otherwise.

Scams VS genuine opportunities; Multi-level marketing has a bad reputation due to the immense amount of scams that are associated with this business model. Although there are few bad programs there are also some very good and profitable ones. There are MLM opportunities in every industry. There are a growing number of these MLM programs in the Health and Wellness industry. They range from long standing publicly-traded companies to smaller startups.

How do you find out if a program is valid or a scam? If the opportunity has a genuine product that is saleable it is considered a legitimate Multi-level market. If there is no product and you are just expected to build a team or down line for monetary gain then it is known as a "Ponzi Scheme". These are illegal and you should not join them. By definition, these are NOT MLMS but just scams. You will be unlikely to get anything from them anyway. Usually the owners collect a certain amount of money and close the business without paying anybody.

A few things to be careful of:

It takes work to make money; there is no such thing as doing no work and earning a lot of money. If you cannot contact the owners, or there is no proper contact information, then be careful of joining. Do as much research as you can before you join.

If you want to find out about a program you can go to a business forum in your industry and ask about it. There are some quite knowledgeable people who use these forums and you will probably get some useful feedback.

Before you join a program be very careful, after all your hard earned money is on the line. Make sure it is a real Multi-level marketing with successful sales reps - not just another chain letter pretending to be an MLM. These few points will help you research your program well and enable you to join good solid programs that will allow you to build a profitable Multi-level marketing enterprise.
About the Author
Zach Thompson is a 23 year-old network marketer & marketing consultant. Why Residual Income?
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