There are a lot of people who are unemployed right now, and there are a lot of people who want to start their own small business. Both of these groups will often take a look at selling products through a different level operation.
This type of selling can be very lucrative, but before entering into any multi level selling program you need to determine is it a pyramid scheme or a MLM opportunity? The reason being is because pyramid schemes are illegal in Canada but MLM is not.
Deciding which your new opportunity is can be quite a challenge, so you need to research it carefully.
There are a few indicators that if present should raise some red flags for you and means you need to extend your research.
In most cases a legal and honest MLM entity does not ask you to buy a large inventory of products in order to become part of their organization. You may be required to buy a start up kit which is normal. What you want to know is would the proposed MLM company buy back your unused inventory at a decent price.
Just how much of a market is there for the products you are going to be selling? If there is consumer interest then you can breathe a little easier about the company. If there is no market as yet, then be very cautious.
Does the company seem to be really pushing their recruitment expectations rather than their products? A good MLM company will encourage recruitment, but it’s main focus will be on the products they are offering.
You need to know what the real focus of the company is. If you as a new member appear to be able to make more money from your sales than from recruitment then you are probably on the right track. If the company is promoting making more money off recruitment as opposed to what you sell then this potentially is a pyramid scheme.
Pyramid schemes put most of their focus on how many new members they can get to sign up rather than on how much product they can sell.
Make sure you do the proper type of research when you are investigating a company that you want to become part of. Gather up all the literature the company offers. This should consist of their sales data, their business plan, and also their marketing plan.
See if you can track down other members that you can talk to that are going to give you some honest opinions about the company they are working for.
You will no doubt be expected to attend a marketing meeting. Pay close attention as to what is being promoted and talked about. There should be a lot of talk about their products and the money you can make off of them. The majority of time should not be about promoting your recruitment opportunities.
Remember that once you have settled on what you have perceived to be a good multi-level marketing company that you are required to keep track of your accounting. Be sure to use a good quality small business accountant to assist you with this.
