Beware of MLM Opportunities – Do This Checklist First

Updated May 15, 2020

There are so many multilevel marketing companies around now that I find it so confusing, if not mind-boggling, to say the least, do you?  Before I go any further, the MLM business also has other names, so if you see the phrases ‘direct sales’, ‘network marketing’, ‘relationship marketing’, or ‘referral marketing’, this is really the same animal.

At first glance, these opportunities can seem like a great idea. Lots of people in our generation are joining these MLM’s because it seems like a legit way to make some money and you can do it from home.

I am not saying they are all scams by any means because they are not.  But please, beware of MLM opportunities and do this checklist first before joining one.  Not everyone is a suitable candidate for this type of business.  You need to ask yourself some honest questions and this is what I wanted to write about for you today because I am in the same boat as you.  I need to generate some income in my retirement.

So, I have put together a checklist of things to consider before you get involved in any MLM company.  I suggest you take pen to paper (like we always used to) and write down your answers to each point.  Be brutally honest.

Ask Yourself This

Your expectations and motivation

  • have you done your in-depth research about an MLM opportunity that interests you?
  • has there been any type of legal issues with the company in the past (or the present)?
  • what are the goals you have set for yourself in joining an MLM?
  • why do you feel this opportunity will help you achieve those goals?
  • what inspires you about this opportunity?
  • do you have any concerns/fears about this opportunity?
  • have you been involved with an MLM company in the past and what was your experience?
  • are you comfortable working by yourself?
  • do you have the support of family and friends in this endeavor?
  • do you have the physical energy and focus to spend many hours at the computer?

How much is the upfront investment?

  • are you absolutely clear on how much is needed to invest in this MLM?
  • do you have the funds to gain entry to the program?
  • what are the monthly expenses, typically, to run this business?
  • can you see information about what other distributors are earning?
  • are you able to afford this MLM as well as your daily expenses?
  • how many hours per day/week are you able to dedicate to the business?
  • check with the company if you are able to earn from sales, even if you don’t maintain a certain purchase level each month
  • do you already have a work station set up or will you need to invest further funds to create a comfortable home office?
  • what happens if you decide to leave this MLM?  Are you able to return products and are there any special requirements for this?

Running your business and selling

  • do you have any kind of sales background or do you enjoy selling?
  • do you have a thick skin and handle rejection well?
  • are there any other sellers in your neighborhood or city/town?
  • would you be able to approach your family and friends as well as complete strangers?
  • are you comfortable asking the same family and friends to invest in/purchase your products/services even if they are reluctant/nervous/strapped for cash?
  • is your social circle quite large so that you have a ready-made potential customer base?
  • do you have any experience using social media and can you take the time/expense to learn it if necessary?
  • are you mobile enough to be able to travel to sales events/seminars if needs be and have the funds to do so if required?

This is quite a list, I know, but it is vital that you ask yourself these questions.  Multi-level marketing is fraught with scammers and money grabbers with the genuine companies sprinkled in.  It is very difficult to sift through it.

I advise you to not only research an MLM company that interests you but to also ask questions of them.  There should be a live chat option or at least an email to contact someone with your queries before you commit to any money on the table.  If they don’t answer you in a straightforward and transparent way, don’t pursue it any further!

Ask to see a pdf file or similar, of their commission structure.  Learn how to spot the warning signs of a Pyramid scheme as opposed to a legitimate MLM, which you can read in my article here.

Other Options Available to You

But, don’t despair!  There are many other options available to you if you would like to generate some income online.  You can get lots more ideas from my article on Money Making Ideas For Retirees.

Our goal here at CRIO is to help you find legitimate ideas to make money from home, whether because you need to, as we do, or just because you would like to.  

What We Do

Philip and I generate our income through something called Affiliate Marketing which is nothing at all like Multi-level Marketing.  It is a fun business that requires very little investment, certainly compared to many of the MLM’s out there.  In fact, the platform that we belong to is totally FREE to try out to see if you like it.  No credit card information is required!  That is what drew us to it when we were spending months researching legitimate online opportunities.  That platform is called Wealthy Affiliate and you can read more about it here.

As an affiliate marketer with Wealthy Affiliate, you can truly be your own boss.  You will not be recruiting family and friends, nor will you be sharing commissions with people in the tiers above you.  At Wealthy Affiliate you get:

  • all the training, tools and resources that you need to learn how to become an online entrepreneur
  • a place to build your own website, based on something YOU feel passionate about and not some replicated website tied into selling products from just one source, such as with an MLM
  • a place to host that website
  • 24/7 technical support
  • access to a global community of supportive, like-minded people
  • FREE access to come on in and try it out

So there you have it!

Thanks for reading my article here.  If you are considering becoming part of a multi-level marketing business, please do your due diligence.  I wouldn’t want you to get involved in something that is not going to help you, such as this company which is an MLM.  Please keep checking back as I will be reviewing more MLM’s.  I am researching these companies all the time.

Have you ever been involved in an MLM yourself?  Would you mind sharing your experience in the comment section below?  If it was good, hey, I would love to hear about it and so would our readers.  If it is negative, you could be helping others to not make the same mistake.

Wishing you every success,



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