Unfortunately, network marketing lists and MLM downlines have gotten somewhat of a bad reputation. The reason for this is mainly because of the presence of pyramid schemes, and that network marketing can often resemble pyramid schemes—but, really only in the way that the business is structured. Pyramid schemes are illegal, and network marketing list businesses and MLM downlines are not illegal. Obviously this is an important distinction to make, and one that clearly delineates the main difference.
Pyramid schemes are often fraudulent, but it is pretty simple to check on network marketing list businesses and MLM downlines before you get involved. There are a few questions that you can ask yourself before becoming involved with any type of business, and, as a home based business opportunity seeker, you should always carefully assess your options before jumping in. You don’t have time, effort or money to waste, do you?
First, you need to know that a pyramid scheme tends to involve the investment of money, and that each “level” of the business benefits and profits when the next levels add money. There is typically no product involved, only the process of recruiting new investors. Those at the top make a ton, those not at the top stand to lose a great deal of money (usually their entire investment). Might look good on paper, but it is not. A network marketing list company or MLM downline will typically be promoting a product or service, and you will be expected to sell the products or services, and then you would receive a commission for each sale. You would also be expected to (and rewarded for) new members as possible. Network marketing lists and MLM downlines that include both of these profitable aspects are often the best for the average home based business opportunity seeker.
Be cautious when the network marketing list or MLM downline is hyped up too much. Nothing is going to get you rich overnight, and there is no magic bullet when it comes to profit. Look to become involved with companies that are well established and have a proven track record of success.