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Why you should ran away from this Network Marketing Company

Updated on June 24, 2009

Determinants of Network Marketing Company's Legality

You are probably thinking of joining Network Marketing or MLM, but there are so many factors when select Network Marketing company. Over the years there have been scammers be it online or offline promoting good and services in unethical manner.

In determine whether a particular program by a company is a legitimate, the recruits should consider several important points. Below are some of the points to take note.

1.       Legitimate mlm company have Good or Service to their consumer – when a company has products that has no value to the consumer, then the sole aim of doing business is to recruit and get money. Why should you get involved with a company where customers will not get satisfactions, who are going to sell to. Network Marketing companies with good and service that do not have value to its distributors and customers will rely very much on cheating or making claims of how much you are going to earn just by buy one of their products. With no customer’s satisfaction guaranteed stop.

2.       The Price offered by a legitimate Network Marketing companies are fairly and competitively priced, when a company has a fair price, many people will be able to buy there products and services but also will be interested in joining the distributorship of the company. The independent Representatives should be able to purchase the company products at wholesale price which allow them to make money when reselling the products. If the company you want to join has goods that are highly priced with no value then watch out, you are about to lose if you are going to spent $700 to buy a product to get started

3.       A legitimate  Network Marketing Company pays Sales Commission solely for goods and services purchased, if a company pays a commissions on sales materials, then watch out, you are about to promote recruiting programs where people are paid after they recruits pays a registration fees

4.       Product Use - a good Network Marketing companies offers products and services that people use. Buying a product which is not consumable by people means your chances of succeeding in that particular company is 0%

5.       A good mlm company does not requires minimum purchase nor inventory requirements in order to become a member to start distributing its products

6.       Legitimate Network Marketing company offers training to their distributors, on how to sell and present the Business Opportunity of the company

7.       Earning  claims by representative should be supported by documents falsehood claim done just to recruit other representatives should be avoided

8.       Members of the company can also earn money from retail commissions, where non representatives are encourage to buy products. If accompany only sales to its members then you have a good reason to run away from that Company

9.       Independent representatives are encourage supporting their downlines, if this is not happening in that particular company then just run away.

But remembers the best products will sales and there will be more success if people are getting satisfaction out of products and services


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    • profile image

      Grammar police 

      6 years ago

      Busted! Very comprehensive article though.

    • profile image

      Helen Peart 

      8 years ago

      Now days to be successful in net working you need to learn to build a relationship with your downline. People join people not companies. Read the book Success in 10 steps by Michael Dlouhy. He has been in this industry for 30 years. Learn what you should have in a business and a 5 pillar company is very Important.

    • networkrecruiting profile image


      9 years ago from Spicy Alabama

      The best thing to do is research, research before joining any company. Great article.

    • profile image


      9 years ago

      I fully agree with your comments-good work.


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