Brush Up on the Realities of MLMs
To stay safe from pyramid schemes and MLM scams, arm yourself with knowledge. Learn about the direct sales industry as a whole, research MLM companies carefully, and determine if you're a good match with your sponsor. The truth is, while you can get rich in MLM, statistics show that less than one out of 100 MLM representatives actually achieve MLM success or make any money.1 However, that's not necessarily the MLM business' fault. Most athletes never make it to the Olympics, but that's not sport's or the Olympics' fault.
Any great feat requires knowledge and action.
Find a Company With a Product You Love
Too many people get caught up in the hype of potential big income from MLM, that they don't pay enough attention to what the company is asking you to sell. You can’t sell something or share your business if you don’t genuinely have pride in what you are representing. Do your MLM research and partner with a company that has a product you can get excited about. Don't forget to look into the company's compensation plan before you join and make sure it is favorable to you.2
Be Genuine and Ethical
One reason that direct selling gets a bad rap is that many representatives use hype and sometimes deception to lure in new recruits.3 This leads many to believe that the MLM companies themselves encourage this behavior when in truth, they don't.
Legitimate MLM companies want you to be honest in your dealings with customers and potential recruits. If you love your product, your enthusiasm is enough to promote it. Just make sure you're not over-the-top or making exaggerated or false claims.