How to Make the Right Choice
We have all been invited to this home party or to that home party by friends and family. We have all had that friend or family member tell us about that new business opportunity or new products they have found. How do we know which ones are for real and which ones are scams? How do you know which ones are the right fit?
What an MLM Business is
A multi-level marketing business is simple. It is a business where you are paid a commission on people you enroll and who buy the companies’ products. It is commonly referred to as word of mouth marketing, or direct marketing, or even network marketing. As you enroll people into your business they are put on different levels of your team. You goal is to help others build their business as well so that you ultimately are able to make more. The MLM business plan takes advantage of personal sales so that these companies are able to eliminate their advertising budgets because it is all about personal contact. This type of business plan is responsible for more millionaires and six-figure incomes than any other business model. There is potential but there are also some things that should be considered.
Beware of the Pyramid Scheme
The pyramid scheme is illegal, however, quite common under the guise of MLM. There are a few things to look for to protect yourself from a pyramid scheme. When you are talking with someone about their MLM, if they continually refer to the executive level and their earnings, you might want to be cautious. These companies usually only worry about signing people up and pay the most on the amount of people that enroll. These companies usually are not long lasting, as the executives face jail time if caught, so they are not around for many years. If you want to be safe pick a company that has been in business a minimum of 5 years. If a company’s compensation plan is confusing and complicated and focuses on the executive level, you may want to move on. When you are looking at a company you should not be promoted solely on the number of enrollees you have, this should be a big red flag as well.
What to Look for with an MLM or Home Based Business
When looking at a home business opportunity you need to look at the businesses structure and where the focus lies. Is it on the common person or is it based on the higher level and executives? The compensation plan can tell you a lot about a company. The compensation plan should not be solely on the number of customers a person has. I know personally of two companies, one is an MLM and one is not, where the compensation plan is based on customers, sales and mentoring. They are also compensated on customers that their team enrolls. The plan should be easy to understand and should not be complicated.
When looking at a company check out their return policy and how easy it is to cancel your membership. There should be a fairly simple return policy either by returning the unused product or even some have an empty bottle return. Research their products and find out what others think and how they work. That is why many companies require their representatives to use the products.
It would be a good idea to also check with the Better Business Bureau and see what they are rated at and how they handle complaints. Obviously the better the rating the better the company’s policy on handling complaints. Make sure that there is a benefit for your contribution. Legitimate businesses will have a service or products for your money.
Home based business opportunities are out there with low start-up costs. Many of these opportunities are MLM’s. These can be great opportunities with hard work and time.
For further information on home based opportunities click here.