What is the Difference between a Network Marketing Scheme and a Reputable MLM

by Juan S. Social Networking & Blogger

There are many reputable MLM or network marketing opportunities available today. However, there are a number of Network Marketing Schemes out there that should be avoided. How do you tell the difference? You have to know what each one is and then you will clearly see the difference.

Reputable MLM Opportunities

Reputable MLM or network marketing opportunities are available from companies that promote and sell actual products or services to non-participants. These companies depend on independent distributors to promote and sell the products or services. Commissions are linked directly to sales. The companies providing these reputable opportunities are sustainable over the long haul. Mary Kay Cosmetics is one example of a reputable MLM or network marketing company.

Look at the makeup of the company. Do they have a dollar amount of products or services that you have to sell in order to collect a commission or do you just have to recruit a downline? The money for sales as a requirement for commissions is one of the main differences between a scheme and a reputable affair.

What is a Network Marketing Scheme?

This type of network marketing often is referred to as a pyramid scheme. The companies involved typically have no products or services that they sell to non-participating members. Instead, the premise of the marketing is to bring in as many people possible into your downline. A purchase of products, services or other things are required for people to join. The promise of profit is made often stating that it is a deal so good it should not be passed by for any reason.

There are many problems with these schemes. Once they are illegal in many states. Another is the fact that over time they implode in on themselves and do not last very long at all. These are not what you want to be involved in for long-term profits.

How to Avoid the Schemes

Research into the companies before you sign up with them to make sure their commissions are paid on actual sales to non-participants to avoid the scams. This is the main thing that signals a reputable offer from a scheme. In addition, look how long the business has been in business and talk to other people that have been involved with it in the past or at present. Do not take the word of just one person. Try to get various opinions.

There is quite a bit of information on the Internet today about these companies. If all the comments you run into being negative, look to someplace else for your venture. On the other hand, be suspect if all the comments are glowing reports. (No company is probably that perfect.) However, when the positive comments outnumber the negative ones proceed looking further into the company.

Can you track the company's history as you can with Mary Kay Cosmetics (and other big named companies)? If you cannot find any hard facts on the company Business Management Articles, be leery of doing business with that company.

You want your experience to be a positive one with MLM instead of negative. This is a way to steer clear of a Network Marketing Scheme.

ABOUT THE AUTHOR

Let Brian Garvin & Jeff West give you more information about Legal Consulting and Direct Sales at MLM Legal.