Firstly try to avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid. Don’t pay or sign any contracts in an “opportunity meeting” or any other pressure-filled situation. Insist on taking your time to think over your decision.
Talk it over with a family member, friend, accountant or lawyer. Remember that no matter how good a product and how solid a multilevel marketing plan may be, you’ll need to invest sweat equity as well as dollars for your investment to pay off. Beware of plans that claim to sell miracle products or promise enormous earnings. Ask the promoter to substantiate claims. Beware of plans that ask new distributors to purchase expensive products and marketing materials. These plans may be pyramids in disguise. Multilevel marketing is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all. Unfortunately, no matter what the product, multilevel marketing is doomed to produce more failures than successes. Sometimes multilevel marketing fail. The reason multilevel marketing schemes cannot succeed is because multilevel marketing is, in essence, a legal pyramid scheme. The basic idea is for a sales person to recruit more sales persons.
This is very advantageous to those who own the company and supply the products, especially since the sales persons in multilevel marketing are also customers. But it is puzzling why a sales person would think it is to his or her advantage to increase the number of competing sales persons.