Network Marketing SCAM Test
In order to separate the scams from the true opportunities in Network Marketing, it is best to determine for yourself whether the company is a scam or not. Don’t trust in what others tell you - good or bad. Usually you can determine this by asking yourself seven basic questions:
1. Do they sell a unique product that’s fairly priced and not available in stores? Check on E-bay for it, do a Google search for it too.
2. Are these products or services consumable? Consumable products mean re-orders. If the company pays you based on a one-time sale such as a water filtration system then you’ll always have to find new customers to maintain your business.
3. Can their products be easily copied by another company? Are they patented or proprietary products? If not, you can count on instant competition and perhaps a short lived business.
4. Is the product guaranteed so that dissatisfied customers or distributors can receive refunds? If not, you risk buying an ineffective product with no recourse to protect yourself and your customers.
5. Does the company have a competent legal department? This is necessary in order to insure that the company operates within the legal parameters set up by the FTC. Make sure you read the Policies and Procedures agreement before joining. Look for anything which describes “termination” or compensation and ask questions about it.
6. Can you buy your way to the top by paying a lot of money? If so, it is probably a pyramid scheme. RUN, RUN, RUN away from these!
7. Do you still get paid if you stop selling the product? Life Happens. Do you still get paid commissions for the work you’ve already done if you’re unable to work for 6 months? Can you work part-time and still make money. MANY companies have clauses to effectively steal your commissions from you if you don’t fulfill “quota” requirements. BEWARE of this trap!
If you can go through these questions and answer them to your satisfaction then you are well on your to making a great pick.
To YOUR Success!