Finding A Legitimate Network Marketing Opportunity
Commonly referred to as multi-level marketing, network marketing is a
concept where individuals come together with a parent company and act
as independent contractors in the sales of a product or service. In
return for helping to promote and sell the parent company's product or
service, individuals are financially compensated in an amount that has
already been determined. The actual amount of compensation will vary
from one network marketing opportunity to another and will be strictly
dependant upon the company's policy.
A legitimate network marketing opportunity will not grant money for recruiting new members, which are required to pay sign-up fees. Instead, they should be paid based on the commissions that they earn from the sale of a product or service. One of the main problems that many network marketing companies face is their comparison to illegal pyramid scams. However, there are a large number of legitimate network marketing companies that operate regularly in every state and in dozens of countries. Today, they are commonly referred to as affiliate marketing or programs.
The best way to distinguish a legitimate network marketing program from a fraudulent operation is through the company's policy. First and foremost, questionable operations will require high entrance fees and/or the requirement for members to purchase expensive products. Typically, these types of companies fail rapidly when the merchandise cannot be resold for profit, which leaves the members in financial distress and the founders with a large bank account
With the increasing popularity of the internet, it is important that entrepreneurs be able to recognize the differences between a legitimate and fraudulent company. As a general rule, affiliates should never have to pay a sign-up fee in order to help a company sell it's products. Simply put, it makes no sense to pay money in an effort to help someone else promote and sell their products. Instead, it is more realistic that the sign-up be free and the individual be paid based on the sales that they generate for the company.
The majority of large internet retailers offer affiliate programs, which allow members to track their commissions and log in to their account at any time. One of the best ways to ensure a network marketing opportunity is legitimate is to know the parent company's reputation by checking with the Better Business Bureau and through speaking with other entrepreneurs and gaining feedback on their experiences. Every day, individuals find great success or simply a way to earn extra cash through a combination of the internet and a legitimate network marketing opportunity.
A legitimate network marketing opportunity will not grant money for recruiting new members, which are required to pay sign-up fees. Instead, they should be paid based on the commissions that they earn from the sale of a product or service. One of the main problems that many network marketing companies face is their comparison to illegal pyramid scams. However, there are a large number of legitimate network marketing companies that operate regularly in every state and in dozens of countries. Today, they are commonly referred to as affiliate marketing or programs.
The best way to distinguish a legitimate network marketing program from a fraudulent operation is through the company's policy. First and foremost, questionable operations will require high entrance fees and/or the requirement for members to purchase expensive products. Typically, these types of companies fail rapidly when the merchandise cannot be resold for profit, which leaves the members in financial distress and the founders with a large bank account
With the increasing popularity of the internet, it is important that entrepreneurs be able to recognize the differences between a legitimate and fraudulent company. As a general rule, affiliates should never have to pay a sign-up fee in order to help a company sell it's products. Simply put, it makes no sense to pay money in an effort to help someone else promote and sell their products. Instead, it is more realistic that the sign-up be free and the individual be paid based on the sales that they generate for the company.
The majority of large internet retailers offer affiliate programs, which allow members to track their commissions and log in to their account at any time. One of the best ways to ensure a network marketing opportunity is legitimate is to know the parent company's reputation by checking with the Better Business Bureau and through speaking with other entrepreneurs and gaining feedback on their experiences. Every day, individuals find great success or simply a way to earn extra cash through a combination of the internet and a legitimate network marketing opportunity.
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Comments (15)
Charles Obagho8
PET PROTECTOR
Wow!! reading through all your comments,I felt thrilled and happy because I get to learn some more from your agreement and disagreement which is done in love and care.Thank you all for your comment,its gives me joy to be a blessing just as you all have been a blessing to me.I appreciate.
Philippe Moisan16
Tutorial videos, sci-fi writer
@Joseph, nice reminder, thanks
JOSEPH CHACKERY13
Officer
We should always check parent company's reputation by checking the 'BBB' status whether this network marketing opportunity is legitimate before signing up for affiliate programs.
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
First concerning Robert Kiyosaki I am in the middle of reading his Book "The Business of the 21st Century" in which he specifically talks about NETWORK marketing.
Second concerning sign up fees every reputable ESTABLISHED MLM in business today requires a sign up fee. I'm talking about proven companies that have been around for 30 years or more and are still going strong but then again I look at the product lines that they sell and they are marketing products that had a wide public appeal; no
Philippe Moisan16
Tutorial videos, sci-fi writer
What ? I registered to all these programs which promise a beach house and travelling around the world, all I have to do is sit on the couch and wait while they recruit for me, I join for free, my downline all pay for joining, and you're saying it doesn't work ?
Darn, I must have been sleeping at the wheel. LOL
Michael Hayes6
Consultant
@Phillipe, For me it's all about the product. If it works, has a market, is well priced, has unique features then it will most likely fly. Most of what I see online has little substance. All form and no content. These products are easy to spot. Lots of scenes of hot travel spots, lounging on the beach, cash flying through the air, and little or no information about the actual product. "Caveat emptor"
Corey Blackmur8
Blackmur Global
@Kevin Brutschea, I appreciate and respect your thoughts and opinions referring to the previous comments I made to this article. In saying that I simply stated: "you can also ask Donald Trump and Robert Kiyosaki what their thoughts are or refer to their new book:" From there I simply quoted what was said by Donald Trump....
I did not indicate in any way that Robert Kiyosaki or Donald Trump are or were ever involved in a Network Marketing Company.
It is not my intent to discredit the integ
Meghan7
I tweeted :)
Philippe Moisan16
Tutorial videos, sci-fi writer
@Kevin, I have no problem with Corey's comment. Donald Trump is very well known. If you choose to call him a fraud, you better be able to back up your statement. The 2nd part of what you said about him is more reasonable, IMO. Let's not forget Donald Trump was the star od reality TV show. Some ( many ? ) people don't like his style, but if it was proven without a shadow of a doubt that he is a fraud, no respectable publisher would want to be associated to him.
Michael, if I may, there is a le
Michael Hayes6
Consultant
Yes in general a good article, however many very successful and reputable MLM's require the purchase of product to get started and the trend shows that the entry cost into these programs is increasing. For instance (and I'm not saying this to promote anything!) SendOutCards costs just over $400 to set-up a distributorship. A significant chuck of money for many people, however the company is reputable and was one of the best performing MLM's last year. The idea that entry cost should be a deterre
Kevin Bru7
It's All Up to YOU! Act NOW!
Very good article. Explains the subject without makeing any sales pitches. You are building credibilty with me now Charles, I'm not turned off to you as I would be with a unsolicited sales letter. @Corey I found your bringing up Trump and Robert Kiyosaki troubling. RK is not into network marketing, but affliate marketing. He sells his stuff through networks, but he doesn't "own" them. Trump is a fraud and is capitalizing on his name be lent to a network compnay.
Philippe Moisan16
Tutorial videos, sci-fi writer
@Don, It's not a rule of thumb, it's a pyramid, in most cases :)
Donald C.6
Freelancer
It's all so true. Everyone looking to earn money from their own business should read this article. Also,a rule of tumb I've found is to stay away from anything that promotes a "system" and has no product
Philippe Moisan16
Tutorial videos, sci-fi writer
Nothing to add. Bookmarked, tweeted, shared on FB.
Corey Blackmur8
Blackmur Global
This is a nice intro to MLM - Network Marketing Charles, I really believe it is a great business model; you can also ask Donald Trump and Robert Kiyosaki what their thoughts are or refer to their new book:
As well Donald Trump said: "Network marketing has proven itself to be a viable and rewarding source of income, and the challenges could be just right for you. There have been some remarkable examples of success, and those successes have been earned through diligence, enthusiasm and the righ