Watch out for MLM business opportunities
Any MLM business opportunity worth considering will either have a track record
that you can investigate and evaluate or it will have a clear statement of
the plan, the potential, and the up-front costs.
Before investing any time or money in a specific MLM business opportunity,
there are some questions you should consider first.
How long has the business opportunity been in business? Before investing time
and money in marketing an MLM business opportunity, it is important to determine
how long it has been operating.
If it is a new concept that has not been proven in the marketplace, you have
no assurance that it will even work.
Does the company have a fixed address and phone number? This may seem obvious
to you, but the fact is, thousands of companies operate with nothing more than
a website and an email address.
Many of them are here today and gone tomorrow. Make sure the business you
intend to deal with has a fixed address, physical location, and established
Does the MLM business opportunity have some successful members you can talk
to? Most business opportunities will show you testimonials. But these are often
They could even be completely fabricated. Ask the owner of the business for
names of real people you can talk to. Call them on the telephone and ask them
to share their experiences with the program.
This will not only provide you with valuable first-hand information about
the program, but it will give you a list of advisors who might be willing to
help you along the way.
How much initial investment is required? In many cases a proven MLM business
opportunity with a successful track record will involve some kind of initial
You should not assume that a business opportunity that is free to join is
a better investment. Usually a free-to-join business will involve other costs
such as marketing and advertising fees. Just keep in mind that nobody gives
away “opportunities” for free.
What you have to determine is whether a specific MLM business opportunity
has a successful track record, is managed by honest people and offers you a
realistic chance of actually making some money. These are the things you must
weigh against the entry costs.
What is the realistic income potential of the business? Have a careful look
at the numbers and projections provided by the business opportunity. Then talk
with actual members who are using the program to determine if they have been
able to turn those numbers into reality.
Are there extra fees such as yearly or monthly subscription fees, shipping
costs, or minimum purchase requirements? Make sure to get a detailed list of
all the fees involved in operating the new business. These things may not seem
significant now, but they can easily eat into your profits later.
How much control of your new business will you have? Be clear on who owns
the business, and who controls the way it is developed and marketed. You may
want to diversify your product offerings in order to avoid being at the mercy
of a "head office.
The MLM business opportunity should require low initial investment and have
high profit potential both in the short term and in the long term. It should
allow you to build a profitable business of your own that will be a source
of income far into the future
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