With the number of multilevel marketing opportunities available, it can be difficult to determine which ones are legitimate opportunities and which ones are borderline illegal. In the past, many pyramid schemes that counted on recruiting others into the pyramid to make money without offering any real product or service in exchange for their investment, left people out of millions of dollars and caught the attention of law enforcement whish has made them illegal to operate.

As a result, many variations of the multilevel marketing plans have been created to offer a thin veil over the fact that they are still pyramid schemes. Fortunately, there are few signs that point to a multilevel marketing opportunity being legitimate with a real opportunity for making real money by selling real products. Five things to look for when considering if an MLM business opportunity is legitimate include:

1. Sales of real products at a reasonable price
2. Enough information for you to make an informed decision
3. Training about the product
4. Resources to enable you to make product sales
5. Recruitment is an option and not mandatory

Many companies may offer product sales to slip in under the guise of being a legitimate MLM opportunity. If the company requires their distributors to buy the product in order to be eligible for sales commissions, it probably is borderline legitimate. If they require you to recruit new members into the distribution line before being eligible to earn commission, it is not a legitimate opportunity.

Any literature, online or offline promoting the MLM opportunity should contain enough information about the product, the potential for sales and a realistic approach to income potential to allow a reasonable person to make an informed decision. Too many times, the entire pitch is focused on how much money a distributor can make. One big red flag is a picture of an alleged sales person standing by a fancy car in front of a mansion. The car may have been rented long enough to drive to a fancy neighborhood where the picture was taken.

The product being sold should be the main focus of the information as well as its marketability, its competition and price. When looking at a product consider if you yourself would be interested in buying it at the offered price and then consider how many you might be able to sell.

The company should also offer support and other resources to make the job of selling their product easier. Many people will pay a higher price for quality merchandise and if the company is offering top-notch merchandise at a reasonable price, it may be a good outfit to join.

While recruiting distributors to work under you is common in the multilevel marketing business it should not be mandatory. Any company that demands a certain number of recruits before paying commission on your sales, is not one to bother joining. Additionally, they may also stipulate that the commission on the first or second sale will go to the person who recruited you. Stay away from these opportunities, as the commissions you earn should belong to you not the next person up the line.

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