Before joining a Multi-level Marketing business

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Questions to ask before joining a Multi-level Marketing business

90 due diligence questions.

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Top ten questions

  1. What makes this a legitimate MLM business and not a Pyramid scheme?
  2. What makes the product unique?
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Your representative

  1. Do Google searches of your representative return any negative comments or media coverage?
  2. Is your representative willing to disclose their income statement from the MLM business?
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The product

  1. What makes the product unique?
  2. Would you recommend the product if there was no financial incentive?
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Reputation

  1. How does management respond to critique (if any)?
  2. Will this be a stable business system for the future or is it a dying trend?
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Customers

  1. Who is the typical customer of the product?
  2. Do you have an opportunity to receive referrals?
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Company

  1. Does the company's corporate philosophy fit your philosophy?
  2. Is it an actual MLM or is it a pyramid scheme?

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Competition

  1. What strategies are in place to prevent saturation amongst too many representatives in one area?
  2. Are there any incentives to sell for this company compared to others?
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Financials

  1. If you want to leave the MLM business, are there any penalties or fees for doing so?
  2. How much selling do you need to do to make a profit?
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Other questions

  1. How is the quality of support and promotional materials?

  2. What makes representatives quit?
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