So, someone has approached you with a great new opportunity. You can make money selling this product and recruiting others. But, is it for real? Is it a pyramid scheme and a scam; or legitimate multi-level marketing (MLM) opportunity? Here are few ways to tell the difference.

Is it a quality product? In the world of sales, a quality product is not only one made to high standards, but one that is also in strong demand and sellable. So, look at the product. Successful MLM programs fashion themselves around quality products that will stand on their own merit for years to come.

What’s the up-front investment? Pyramid schemes generally ask for large investments up-front; because that is how they make their money. Pyramid schemes are looking for customers-they are not recruiting salespeople. So take a look at the investment; is it reasonable? If’ it’s a legitimate MLM, you should be able to begin the program with the simple investment of a starter sales kit and a few demonstration materials-sold to you at company cost.

How do you make your money? Is the emphasis on retail sales? Are the products actually considered valuable? Look at the commission sources.  A legitimate MLM is product focused; they are looking for the ultimate consumer, not the ultimate sucker.

What is the buy-back policy? If you decided the program isn’t right for you, will the company buy back your inventory?

Are the distributors involved? Most MLMs require that their distributors play and active role in supervising, selling, distributing, etc. in order to ensure the product gets to the consumer.

Is it too good to be true? Pyramid schemes tell you what you want to hear; and that isn’t always the truth. So, look for honesty in marketing. Does the literature promise claims of great wealth or does it give examples of verifiable income levels achieved by real members.

Do they provide training? Legitimate MLMs offer solid training at each level. This training is free and readily available.

Participating in a legitimate MLM program can be incredibly rewarding; but be careful. Before you leap, make sure you know what you’re getting into. Don’t let yourself be blinded by the sales pitch and hype.  Ask the questions. Look at the facts. Is it a legitimate MLM or a pyramid scheme? The difference will show in your pocket.

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