7 Things You MUST Know Before Joining That MLM

With the credit crunch already upon us, many people are either looking to improve their financial situation through extra work or, indeed, just need to find a source of income full stop.

For some, the talk of residual incomes, unlimited wealth and hours to suit, that many mlm representatives quote, could seem like an attractive proposition.


However, not all business opportunities are created equal and mlm has a bad name, justifiably so in my opinion.

With around 99% of all participants failing to make a net profit, can you afford to make the wrong decisions?


1. Avoid any compensation plans that include payments purely for recruiting additional distributors as this may indicate that the mlm is, in fact, a pyramid scheme.

2. Watch out for plans that require new distributors to purchase expensive inventory in advance – such plans can also be pyramids and often collapse quickly.

3. Be cautious of any plan which states that you will only make money if you continuously grow your downline rather than through the sale of products.

4. If the mlm that interests you claim their product offers substantial health benefits, or is a miracle cure, then get those facts substantiated before repeating them – just because a rep says it’s true doesn’t make it so.

5. When being recruited be on the lookout for shills – decoys who will lie about their current and potential earnings in order to entice you to join.

6. Never be put ‘on the spot’ such that you feel compelled to sign any contracts in a high pressure environment. Instead, take your time and think about what you are doing and what sort of company you are joining.

7. Due diligence! Always check an mlm out before joining, through the BBB, Attorney General, web forums and unbiased web sites.

Can you offer any further advice on what to look out for before joining a multi level marketing ‘opportunity’?

About Lee Munson

Lee's non-technical background allows him to write about internet security in a clear way that is understandable to both IT professionals and people just like you who need simple answers to your security questions.


  1. Connor Matthews says:

    #2 is important as many new reps get sucked into front loading.

    • As far as I am aware, that is a practice that seems to be encouraged in many ‘legitimate’ mlms with incentives and promotions offered if certain sales levels are achieved.

  2. That’s great advice as far too many people rush into network marketing without knowing what they are getting into and then fail quite spectacularly.

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