If you’re looking for legitimate mlm companies, it can be a chore. It’s easy to become blinded by the flashy presentations, the huge promises of cash rewards and Caribbean beach holidays.
However, you need to swim carefully.
There can be sharks in those mlm waters…..
In this article I want to explain how you distinguish between a legitimate mlm business opportunity and an illegal pyramid scheme.
When you do your due diligence first, you have a much better chance of making an informed decision.
1. Do a background check of the company
Some companies such as Amway have been around years and are house hold names. Many are new and this is where the danger starts.
A lot of mlm companies are not in fact genuine and are created as illegal pyramid schemes whose aim it is to make some fast cash for the unscrupulous founders before they collapse.
Many new companies offer the chance to get in quick on the ground floor, but again beware, as many mlm companies collapse in their first year.
2. Jump online and research the company
First start with whois.com and see when the company URL was registered and who registered it. By URL I mean http://www.companyname.com
If it’s a legitimate business it should say who registered it
Search the owner’s names you find. You may find that they’ve been involved in previous pyramid schemes.
Search the company name and add keywords like review and scam, in order to find reviews of the company.
Check the review is legitimate and is not purely there to get you to click on their link and sign up to the company!
3. Look how the company is structured
Do they offer a comprehensive list of products you can promote? If not they are likely to be a pyramid scheme and you should avoid it like the plague.
If they just talk about recruiting, then again it could be a pyramid scheme.
Research the products and the prices. If it’s a pyramid scheme, then they probably won’t even mention the products.
Are they actual products that people will want to use or are they fanciful investment opportunities.
As a side note, even though It might be a legitimate mlm business, the products might not align with you, or they might be hideously expensive.
If they are vitamins they might be twice as expensive as buying them from your local drug store.
You might be uncomfortable with what the business sells, you are going to find a very hard time selling it to someone else to believe in.
If they say “The product literally sells itself” then also beware.
4. Check the compensation plan
A mlm company makes its money from the sale of its products, not from the contribution of new recruits.
Does the company provide a full compensation plan that shows how you will be rewarded for your hard work?
Does it talk about how you can be promoted within the company.
I hope this article about finding legitimate mlm companies has helped you.
Make sure you pick a company you truly believe in.
For training on how to market your new company online, make sure you download my free training materials.
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