7 Tips for honest MLM's

There are seven tips when picking a great home based network marketing or MLM business.

1. LOW START UP COST

Be wary of any company asking for more than $200 to join. Legitimate companies do not try to make their profits on start up fees.

2. GUARANTEE.

Pay close attention to the company's guarantee. Will they buy back the product? Under what circumstances? This is an indication of whether the company's goal is to make money off their distributors or to help their distributors make money.

3. A LEGITIMATE PRODUCT.

Avoid companies who offer pills and potions with exaggerated claims of health benefits. Recently several companies have come under scrutiny by the FDA for claiming cures for everything from cancer to HIV.

4. VALUE

Many times MLM's expensive products that can be purchased for substantially less through traditional sales channels.

5. THE COMPANY SHOULD FOCUS MORE ON PRODUCT SALES THAN RECRUITING.

6. AVOID COMPANIES WITH COMPLEX COMPENSATION PLANS AND DIFFICULT QUALIFICATIONS.

Some MLM compensation plans are difficult to understand as the U.S. tax code in Chinese. These plans often have hidden qualifications that literally "rob the poor to give to the rich." Straightforward, honest fair compensation plans.

7. IF THE COMPANY OR A DITRIBUTOR OF THE COMPANY CLAIMS YOU CAN BECOME RICH WITHOUT WORKING, RUN FOR COVER.

These seven tips for network marketing and MLM's come from "The 5 Lessons a Millionaire Taught Me About Life and Wealth" by Richard Paul Evans New York Times best selling author.

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