Multilevel Marketing - Good Or Bad?
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If you’ve ever dreamed of running your own business from home, whether on a full or part-time basis...and are good with people but have very little business knowledge, then Multilevel Marketing (MLM) may be for you.This is especially true if you have a minimal amount of start-up cash.
MLM companies provide a product or service to the consumer via a network of “independent” distributors, who usually work from their home.
Reputable MLM companies also provide a low start-up cost, all the training you need, advertising in one form or another, and supply you with a product line-up or service to sell. They also allow you to recruit other distributors and make commissions on their total sales.
The United States Federal Trade Commission, however, cautions anyone from joining a MLM company that pays you for each distributor you recruit, as opposed to only paying a commission on the total sales they generate. This is called ‘Pyramiding’ and is illegal.
The U.S. FTC also encourages you to thoroughly research a MLM company before signing on the dotted line, and not to sign anything under pressure, but instead, take time to consider all the details. You can check out their Multilevel Marketing Caution Web Page at: http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm. On this page, they also list seven checks you should do before making your decision whether to join or not.
Research is always an important component of any business venture and considering a distributorship with a MLM company is no exception.
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