Whether you call it multi-level marketing, relationship marketing or network marketing, there are many things you need to look at when you are making a decision about what business to get into. The stigma of the “pyramid scheme” is almost a thing of the past, but some people still cannot get over it. So how do you help someone into the business and what do you look for to make sure a company is legitimate.
Does the company have a history? Has the company been around for a while, or is this a ‘ground floor’ opportunity? The problem with a ground floor opportunity is that it is a statistical fact that most companies go out of business within the first five years. So the odds are stacked against you from the start with a new company. (If the company beats the odds, you can win big, but network marketing is already a tough business, so why take that chance?)
Is the company listed on the stock exchange (The Dow or NASDAQ)? This lets you know that the records are public and the company has to operate on the up and up, or they face the stockholders and the government.
Are there products involved or is the income driven strictly by associate fees? This is a huge one. If the product is minimal, then the company is operating an illegal scam. If the products are consumable, you have repeat business which is good for your residual income. That brings up the point of having customers. If the only people buying products are all associates, this should throw up a warning sign to you. Income needs to be based on consumers buying products, not associates filling their basements.
Does the company require large start-up fees or personal sales volume? If the start up cost is high, and doesn’t even involve products, you have a problem. Many companies require huge monthly personal purchases, and this cannot lead to success for the people trying to make a living with this.
Is there training and support, or do you get thrown to the wolves after the initial courtship? A nurturing and caring group with ongoing support is needed for this business. So many companies tell you how easy it is. (The product sells itself!! – If it really sold itself, they wouldn’t need you.)
If your success drives the success of those above you, there is a business partnership relationship. If they care about your success, they will help you learn the business and will be a phone call away whenever you need help. Talk to people who are involved with the company and are not personally trying to ‘recruit’ you. They can often give you a real idea of what is involved in making a real success of the business.
Look for integrity and third party endorsements. It’s easy for any company to claim to be the best, but if independent studies or polls prove them to be the best, then that really tells you the true story. If the management team changes on a regular basis, you have to ask yourself why. If the leadership has been there for many years of success, that also tells you something about the company.

Author's Bio: 

Robert Britt is married and a father of four. He is a published author and has a degree in Psychology from Albright College . Robert is a recognized expert in the field of personal finance, self-esteem and confidence building. See www.SelfEsteemBuilder.net for a free tool to build confidence. He is a full time professional writer and speaker. Robert spent 13 years in the military and 14 years in manufacturing prior to self-employment. Please contact Rob using rob@wealthtrainingsource.com
visit www.robertbritt.com and www.ProsperityModel.com