A lot of people consider taking on some part time work once the kids go back to school. This sometimes means working for themselves and maybe becoming involved in multi level marketing companies that offer various business opportunities.
Basically multi level marketing companies encourage the distributors of their products and services to encourage other distributors to join, who then get a percentage of the sales that these newly recruited distributors generate. It can be a fine line between pyramid sales which is an illegal form of selling.
Companies that promote multi level marketing claim that they are implementing a form of direct selling to the consumer, which relies on different levels of sales reps to take the sales approach. Some companies call their multi level marketing tactics a compensation program. There is a lot of controversy surrounding this type of selling, and it makes it difficult for the individual who is thinking of entering into this type of potential income producer.
Companies that are into the multi level marketing schemes will promote their particular program as offering the best incentives for bringing in new recruits. They sometimes tend to focus more on this area of the business rather than the products/services they offer, and this is when there may be some need for concern.
While you may be more interested in the money that you can make from MLM you also have to be vigilant at what it might cost you to become part of the company. For example, are there membership fees, or are you responsible for buying substantial amounts of inventory?
Based on the controversy that surrounds multi level marketing your commitment is going to be two fold. First you are really going to want to do your homework to make sure that the Company you are thinking of joining is not a classic pyramid scheme. You want to know that the company’s main interest is in selling their products/services and not in recruit building.
There have been several big companies in the US that have been involved in multi level marketing to make their company a success. There have been a lot of distributors affiliated with them that have made a good living as being part of their sales team. At the same time there are a lot of other companies that have found innovative ways of staying on the legal side of the fence for MLM and yet their goal tends to be that of the pyramid schemes.
Final Multi Level Marketing Review
We are going to give multi level marketing opportunities a try/buy rating, but only on the conditions outlined in the above commitment. Ideally you want to go with a company that has been established for many years and is not under the scrutiny of legal authorities because of their marketing tactics.
We recommend that you really educate yourself on the differences between valid multi level marketing and pyramid schemes so you will know what to avoid. When an employment opportunity sounds too good to be true, then it usually is. We have taken a look at some various business opportunities in the past that you may want to check out.