The Truth About Multi Level Marketing

[Cynthia]

The Truth about Multi Level Marketing

Too good to be true?
My friend wanted a passive income stream, which means making money
without actively selling a product or service. A business associate
suggested a product line, explained that customers would order online
and she would make money. She went to an information session, was
sold on the products and signed up without having a lawyer look at the
documents.

She sold the products, and then wanted to known when she would be
collecting her payments. It was then she was told she would not be
paid, but instead received points towards products. It was not a
passive income stream she was looking for, but instead a multi level
marketing company or MLM.

MLM
Multi level marketing is a system where one business person, the top
of the pyramid, receives commissions of their sales and the sales of
others they get to sign up under them. It is sometimes referred to a
pyramid scheme. This is not to say that they are all illegitimate,
they are money makers for some.

What you should look for?
If you want to sell product, you have been approached and are
interested, then there are some things you should keep in mind.
• Recognize that you are signing a contract. You may want to have a
lawyer review it.
• Is there a penalty if you decide to terminate it?
• Can you easily terminate the contract?
• Next, look at how much money you have to give up front.
• Is the only way for you to make money to find someone else to sell
with you so that you gain their commissions?
• Can you just sell the products in your office and do a markup. In
this way you are treating the company more as a distributor.

There are opportunities in multi level marketing, but there are also
risks. You need to have a good understanding of what it expected for
you to make money before signing the contract.