Let’s face it, just like with anything involving money, there are people who don’t have your best interests in mind. And MLM is no different. In fact, if you’re not doing your due diligence when researching an MLM business to join, shame on you.
Although, I can’t tell you which opportunity is an MLM scam or the real deal. I can arm you with some valuable criteria so you can weed out all the phonies in your mlm reviews. Here are 5 Bullet Proof ways to find and MLM winner or pluck out an MLM scam.
How To Spot An MLM Scam: Step 1
Verify the company’s profitability. Is the company private or publicly traded company? Two good places that you can go to are Yahoo finance or MSN finance.
How To Spot An MLM Scam: Step 2
Find out how old the company is. A 3 day old company is risky and preferably you want a minimum of 7 years. The reason for this is that you want to have time to see how company reacts to cycles and how they adapt to market changes and how does it affect profitability of company. You want to see if that company can weather a storm. Therefore 7 years is a really good time frame.
How To Spot An MLM Scam: Step 3
How exclusive is the product or service? You want to know if there are any other companies out there marketing a very similar product. How much competition you have demonstrates if there is a need for what you have in the marketplace. You want a certain element of competition there. You don’t want to be the market test to see if there is anyone out there looking for what you have.
How To Spot An MLM Scam: Step 4
Investigate the credibility of the company. If it is under 7 years it probably doesn’t have much of a reputation. Are they marketing the same product as others with just a different label. Can you find products on ebay for a 90% discount? Look into the credibility of people who run the company. Can you find any information related to foul play of anyone related to the company in the past?
How To Spot An MLM Scam: Step 5
Company Integrity. What is the integrity of the company and the products. In all aspects of the company does the company have integrity? Try the State Attorney General’s office of the state where the business is located.
Armed with these 5 Steps you should have more than enough to get started. If anything smells fishy it’s time to make a judgment call. Most of the time your gut will tell you what to do and in most cases your gut is usually right.
