MLM Buyer beware: Questions to ask before joining

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By jedgrey


Know the truth about M.L.M.

1. Is there a product actually being sold at retail to the general public?

2. Is there a head hunting bonus just for signing up others?

3. Who are the owners and what is their business track record?

4. Do they have specific experience with MLM? When?

5. Do they have sufficient capital?

6. How much to join?

7. Is the plan clear and easy to explain to others?

8. Who makes the product and Is there quality assurance in place?

9. Is there a realistic time frame with clear terms describing the guarantee?

10. Is there a minimum monthly sales level required to keep your downline?

11. Do you have to buy a minimum of product each month in order to keep your downline?

12 Will they buy back any unused product or sales kit in new saleable condition?

13. Do they drop ship or do you have to physically heft all this stuff into your garage?

14. Will there be a lot of people coming to your house, especially after hours?

15. Is the price competitive?

16. Is the product so new that nobody knows about it?

17. Does the company back you up with ethical and appropriate advertising?

18. Is your sponsor personally interested in giving you the needed training and attention to properly develop your business?

19. Are there any territory restrictions or can you sell anywhere to anyone?

20. Are there any house accounts bypassing the downline and dealing directly with the home office?

21. Can a wealthy prospect buy into a downline at a high level or is everyone required to start at a true ground floor level?

22. Does the company tell you who they are right up front?

23. Is the presentation low key giving you time to consider these questions?

24. Can you verify any testimonials that you choose to request?

These basic questions are discussed in much greater detail on my blog at The Frugal Scot.

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darkside profile image

darkside  says:
2 years ago

A hub after my own heart!

Excellent information here. It pays (or saves) to do some homework before signing up to anything, particularly MLM's.

jedgrey profile image

jedgrey  says:
2 years ago

Far too many people have been hurt by this situation, and yet if you have what it takes, it is possible to succeed with a legitimate company. However, I believe the internet growth is bringing about quantum changes in the way we do business, what do you think?

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