You will not be far off if you have been approached with legitimate business opportunities but because they seem to be too good to be true, you were skeptical enough to believe that they were in actual fact part of the network marketing scams that you so often hear about. So how can you differentiate between a legitimate network marketing company and a network marketing scam? MLM scams are abundant in the market which is why there is also the MLM watchdog to keep an eye out for such MLM business opportunities that are not quite legitimate. Thus, before you join any MLM company, you have to do your due diligence and research on the company and their products before you join them if you do not wish to get burnt.
Listed below are a few tips which you can use in order to avoid falling into such MLM scams.
- Does the company require front loading of products? This means that you are required to purchase a huge amount of products upfront when you join the business before you can start making any money. These companies will die in the long run as business cannot be sustained and everyone has tons of products to get rid of. What will happen is that soon there will be a flooding of products in the market and those desperate to get back some money will start selling off the products at super-low prices, before saturation point is reached.
- Does the company have a management team that is solid and honest? A background check will reveal more information on the management team and the way they run previous businesses as well as the current network marketing opportunity that you are looking into. More information can be found on the MLM watchdog site.
- How safe are the products? This is critically important especially if you are dealing with consumable items such as health products. Imagine what will happen if you are promoting a product that is later discovered to cause health problems such as organ damage? You definitely want to steer clear of such unsafe products.
- How consumable are the products? Are the products saleable and useful for consumers? You do not want to join a company where the products are only consumed by the distributors and nobody else.
- How reasonable are the prices of the products in comparison to the value they provide? Many companies tend to overprice their products just so that they can pay the various levels of distributors as well as keep a healthy profit.
Once you have found the right network marketing business opportunity, always look for the right upline as well as this can sometimes determine your success or failure in the company.
Doing your due diligence to find if the legitimate business opportunities are real or just network marketing or MLM scams will save you lots of heartaches in future.
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