Multilevel Marketing Business Legitimate
TYPE OF PRODUCT
TYPE OF PRODUCT One of the ways to separate the legitimate MLM from the scams is by looking at the type of product that the multilevel marketing home business will provide. Many multilevel marketing home business ideas work on the principle that they will be charging way too much for the service or product they will provide. So check that the company is charging a fair price for their product. Also check that you can become involved with the company without having to pay for a huge amount of inventory. This is also the way that many scams operate, on the idea of selling to people who think that they will be selling in large volume from the get go and not caring what happens to the investor after that. If you have to invest thousands in a multilevel marketing idea then it is best to head in the other direction fast.
It is best to ensure that you can be a sales representative with little or no more than the purchase of a sales kit or demonstration materials.
COMPENSATION PLAN
Looking at the compensation plans of your prospective multilevel marketing company is one of the best indicators as to whether or not it is a scam. Check whether the compensation plan pays bonuses or commissions purely on the basis of recruiting more people into the company. If it does, it is illegal. It is also not a legitimate MLM if it pays headhunting fees as this is also illegal.
A home business idea such as a legitimate MLM is great because of the relatively low financial risk involved. This may not ring true to the work at home business ideas you have seen but the good multi level marketing companies will buy back the sales kit and any re-sellable materials from any of those who wish to cancel. This is actually required by law so have a look at this before handing any money over.
PERSONAL USE OF GOODS
The FTC also rejects the idea of personal use of the goods or services that you will be providing as a legitimate retail sale. But the debate continues over whether or not the sales to non participants and purchases in reasonable amounts are retail. There are big grey areas in the world of multilevel marketing so keep abreast of the laws and statutes in your state.
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