: 5 If you're considering an MLM, CDM, or network marketing opportunity, ask these questions by Scott Allen to determine whether a network marketing, multi-level, or consumer direct marketing opportunity is worth your while (and your money). 1. Who is your upline?
Take it all the way to the top. What do you know about the person who introduced you to the opportunity? Can you trust what they tell you?
Are they willing to divulge exactly how much they've been making? And what about the founders of the company (assuming it's a newer company)? Have they been successful and reputable in their previous businesses? Investigate your entire upline just like you would a business partner you'd never met before.
2. What is the product?
Is it something that would sell well in a retail store or via other traditional marketing and distribution channels? What's the competition like? How convincing are you going to have to be in order to sign up customers? If you're not an experienced salesperson, don't expect to become one overnight. You're going to have to become an evangelist for the product, so make sure you believe in it.
3. When will you start actually making money?
Don't fall for the line that it takes months or even years to show a profit. You should be able to recoup any investment and start earning income within just a few weeks if there's really demand for the product. Making a living at it is another story. You need to be able to work it part-time in addition to other steadier income sources. Will you realistically be able to do that with this company?
4. Where is the product being promoted and where can you promote it?
Is the company doing advertising and publicity of its own to help create demand for the product? And what restrictions are there on where and how you can promote it (advertising, websites, etc.). There's not a right or wrong answer to that question - a wide open policy is more flexible for you, but for everyone else, too.
If you're prepared to be highly competitive, that's fine, but if not, you may prefer to work with a company whose policy is more restrictive.
5. How were you recruited?
Were you recruited primarily as a customer,