MLM Home Based Business

Types Of MLM Home Based Businesses

There are two types of MLM home based businesses. One is a legitimate business opportunity offering tax benefits, a full line of products, from kitchenware, vitamins to cosmetics and services to be sold, excellent customer service offered by the parent company and the support and guidance of an organization of others who teach recruits how to effectively sell and make a profit. With a legitimate multilevel, those that recruit others into their downlines are not paid a fee to do so.

Legitimate MLM Home Based Businesses

Legitimate multilevel offer a wide range of products using a hands-on consultant approach to sales. They offer a wide selection of quality products guaranteed to satisfy, or the customer’s purchase is refunded. They require a buy-in investment of a product or sales kit with a buy-back guarantee of any unused products should you reconsider and opt out. Sales are performed in people’s homes during shows or parties by appointment where items are displayed and demonstrated. Customers invite family and friends to the demonstrations. While still primarily comprised of women in the sales force, more men are entering the field because product lines have diversified and some men feel more comfortable selling vitamins, supplements and services than cosmetics or housewares. Profits from sales goes to the sellers, with additional commissions paid for performance and to the sponsoring upline by the parent company based on their group’s overall sales volume.

Illegitimate Multi-level Marketing

The second type of multilevel operates in an opposite fashion, paying fees to those who recruit people into their organizations while offering little or no support or guidance in sales to those who are recruited. Products are questionable quality or nonexistent. Pyramid schemes abound, requiring participants to buy-in so they can recruit others generating profits for those at the top levels generated from new recruits entering at the bottom.

Ask Questions Before You Sign

Before you sign on the dotted line with a MLM home based business, make sure to check the fine print and determine exactly how much support is offered to you as an independent sales rep, and the quality of the products.

Does the company offer products they manufacture or are they subcontracted? Is quality guaranteed? Ask to see samples of the line. Is there an opt out clause where the parent company will buy back unused product from you? See the clause in print. Talk to others who have been part of the organization who can offer an unbiased opinion. This is sometimes very difficult because most multilevel businesses encourage a zealot approach to sales and claims. But if someone at a higher level becomes offended when questioned about how his or her money is made, take warning. If it sounds too good to be true, it most likely is. Also check out and see how many levels down you receive a benefit from performance. A good multilevel should have no limits. A bad one will stop 4-6 levels deep. You can get additional information by going to the Direct Selling Association Web site.