• Is the emphasis on recruiting or on product sales? If
it’s on recruiting, the company may be a pyramid
scheme. Even with a network structure, a multi-
level company still needs to sell products to
customers in order to succeed. In established
network or multi-level companies, only a small
percentage of the distributors actually build sales
organizations.
• How many people are already signed up as
marketing representatives in your area? Too many
representatives in one area can saturate markets. If
the company is already recruiting heavily in your
area, how likely is it that you will be successful
recruiting additional representatives?
• Are you told that people are making lots of money
with only minimal effort and that you can too? If so,
it may be a pyramid scheme. While network
marketing may be a good business opportunity for
the right person, it is not a get-rich-quick scheme.
Network or multi-level marketing can be a legitimate way
for you to acquire products. It can also be a way to build
your own business. But in a crucial way it is the same as
most businesses. Success comes only with hard work.
There is no shortcut to wealth.
Remember, pyramids are illegal. Network marketing
companies are legal. If you have any doubt about whether
a business opportunity is an illegal pyramid, you should
contact the Consumer Protection Unit or consult a private
attorney before you participate.
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