How to Spot a Bad MLM Company: 3 Tips To Avoiding Scams Online
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While some people have a negative view of MLM, the fact of the matter for anyone who isn't lazy and realizes this is a real business is that there are some really great network marketing companies out there.
However, just like in any industry there are a lot of really terrible companies out there as well. In order to spot a bad MLM company before joining, you need to be aware of 3 things:
1. What is the cost to join? I firmly believe that you can find great network marketing opportunities for well under $500, even $200 for that matter. However, if you have been asked to join a "free MLM" company then run the other way. You can't start a business for free, and if you are not willing to invest a small amount to get started you aren't a serious entrepreneur.
2. What is the product, and is it overpriced? Some people say that what keeps an MLM "legit" is the fact that there is a product attached to it, however that isn't entirely true. The product needs to be reasonably priced. Ask yourself this question: If there was not a business opportunity attached, would you pay the price your company is charging for the product?
3. Does it take an advanced degree in math to decipher the compensation plan? Bad MLM companies sometimes cover themselves with complex compensation plans. This is a red flag for sure. It may take you watching a company presentation 2-3 times to understand, but it shouldn't be too difficult.
No matter what company you join, make sure it is a reputable company, and make sure you can generate your own leads.
Want see how I generate more than enough leads for my network marketing opportunity?
However, just like in any industry there are a lot of really terrible companies out there as well. In order to spot a bad MLM company before joining, you need to be aware of 3 things:
1. What is the cost to join? I firmly believe that you can find great network marketing opportunities for well under $500, even $200 for that matter. However, if you have been asked to join a "free MLM" company then run the other way. You can't start a business for free, and if you are not willing to invest a small amount to get started you aren't a serious entrepreneur.
2. What is the product, and is it overpriced? Some people say that what keeps an MLM "legit" is the fact that there is a product attached to it, however that isn't entirely true. The product needs to be reasonably priced. Ask yourself this question: If there was not a business opportunity attached, would you pay the price your company is charging for the product?
3. Does it take an advanced degree in math to decipher the compensation plan? Bad MLM companies sometimes cover themselves with complex compensation plans. This is a red flag for sure. It may take you watching a company presentation 2-3 times to understand, but it shouldn't be too difficult.
No matter what company you join, make sure it is a reputable company, and make sure you can generate your own leads.
Want see how I generate more than enough leads for my network marketing opportunity?