Questions to Ask Before Joining MLM Businesses

Mlm business opportunity network marketing – it seems like you can barely turn around without bumping into one of them, promising to make you rich beyond your wildest dreams overnight, without you having to lift a finger. They often sound like they could be too good to be true, and often, they are. Having said that, there are mlm businesses that are legitimate and really do offer entrepreneurs a good way to earn extra cash from home. The problem then becomes – how do you tell them apart? Here are some questions you should consider before joining any mlm businesses.

The first question involves the top tier of the company. Who are they? What do you know about them? Are they the founders of the company? Many mlm businesses give you a song and dance about the company founder being some poor, down on the luck man or woman, who took a chance one day with little investment and now runs around with a fleet of private jets and vacation homes. Sounds a little suspicious, doesn’t it? Although it will be nice if that happens, what you really want to know is that the company is headed by business people who are willing to have an honest and realistic discussion about the company. Beware there, the “I was once just like you,” pitch – it’s just emotional manipulation.

The next question regards the product you will be selling. First of all, if no one seems to be concerned about the product, run away. That is a pyramid scam, and getting caught up in it is costly and illegal. Once you know what the product is, do your market research. Is there a demand for it? Who are your competitors? If it would sell well in a normal retail environment, why isn’t the product placed there? This research will help you determine if this plan could really be one of the few money making systems that will work.

Next, find out more about promotion responsibilities. Is the company actively promoting the product, as a franchise would, or do you have to cover all advertising and promotion costs yourself? That could get costly fast, and send your budget well into the red.

Last but not least, figure out when you will see a return on your investment. If the company gives you a lot of talk about long term visions, turn and walk away. There’s no reason you should wait for years for a return on an investment in this kind of venture. You should be looking for something in which you could start making your money back within a few weeks of starting to sell. If things are going to take longer, either the initial investment is out of whack or the mlm network marketing opportunity is one that is destined to fail.

Answering these questions will help you clear up any confusion you have mlm businesses and help you zero in on a mlm network marketing opportunity that is right for you or one that is for the birds.