MLM Programs: What to Watch Out For

Before you get too excited about making all this money that the latest MLM programs promise, there are some things you need to watch out for before you spend your hard earned money, to make money.

All MLM programs aren't created equal and you will discover that some are actually better than others, and some are nothing but rip-offs. What I'm going to do is give you a list of things to check out or check into before committing yourself and your money to any specific program.

When you start investigating these multi level marketing programs, you will run across some of the old MLM programs that have been around for a while, and you will find some that are fairly new. Along with these programs, there will be testimonials about how well they have done and how much money they are making, but until this is happening for you, take these testimonials with a grain of salt.

Also be aware that it takes a special type of person to succeed with MLM programs, and unless you are persistent, eager, dedicated and willing to go all out to learn and succeed, you will probably fall within that 95 % failure rate that is so prevalent with these programs.

The way the program is suppose to work is that you recruit people to start a down line, that in turn start their down line and all the money that is being made from selling products always goes up the chain. But you may come to realize that recruiting people isn't as easy as you though it would be. So many people have already joined under someone else and become disillusioned, that by the time you join, there is no one to recruit who hasn't heard the "bad" rumors.

But if you insist on finding out for yourself how the MLM program you're interested in works, then make sure you use the check list below before you shell out your money.

1. If you receive any sales literature from this company, make sure it mentions or gives you detailed information about the products and or services you will be selling. If they only want to let you know how successful and rich you can become from joining their multi level marketing program, then you may want to give this one a wide berth.

2. What kind of products is this company offering? Would you purchase them? Will the public use them? Could you truthfully use them and give an honest opinion about their usefulness? Is there a demand for this product that can bring repeat business. If not, then you may want to pass this one by also.

3. Check the market for a similar product or products and see if they are better than what you would be offering. Is the product out in the public less expensive and can easily be purchased? You may want to forgo this one too.
Any product that is cheaper, better and can readily be purchased through the mail, the local retail store or health food store, then there wouldn't be a great market for what you're offering. If you and your down line can't sell the product, then no one is going to make money. Not you, your down line, your up-line or the company.

4. Is this product going to have people placing repeat orders? This is where the money comes from, repeat business. If you and your down line can't do repeat orders, then the money and the orders will eventually dry up and your down line will loose interest.

5. Make sure your MLM program is not a pyramid scheme. If they offer money or some type of reward for recruiting people, or you have to order massive amounts of merchandise to get into the program, or the company doesn't have any interest at all in selling to consumers, then run for the hills. True multi level marketing programs requires that you purchase only the items you want, and selling to consumers is what brings in the money.

6. Don't ever join programs that have more than 7 levels in the plan. These generally don't pay anything or they pay very, very low commissions, and their products are so over-priced that you would never be able to sell them.

7. Do not deal with companies that want to print and then mail any sells brochures for you. The chances of these companies taking your money and not delivering is very high. If you brochures need to be mailed, you can do your own.

8. If the MLM program you're interested in doesn't have a product that the public would be interested in, then you just lost your money. Another point is, if their policy is that you don't have to buy and try the product before you and your down line can sell it, then know that this would not be right for the consumers, because how can you recommend a product you've never tried. If your down line doesn't have to purchase and try the product, how are they going to make money to pass up to you?

9. You definitely don't want to deal with a MLM program that has a commission formula that is so difficult and convoluted that not even a mathematician can figure it out.

10. Lastly, stay away form MLM programs that promise you can make $50,000 in three days. The only one making that is the company.

I want you to think about one other thing before I close. If an opportunity comes along where someone tells you that if you duplicate what they are doing, offers you money to duplicate the process, where others in turn give you money, and others give them money, and the program just goes on with money passing hands and the program being duplicated, then what you basically have is a "Ponzi Scheme," or a multi level marketing scam at its worst.

So be sure to scrutinize your MLM program and use the guideline above before you pay out your money. There is no amount of success worth putting yourself in the poorhouse for.