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Basic elements in MLM

You probably have an image firmly planted in your mind of what network marketing (also known as direct sales or multilevel marketing) is all about--housewives buying and selling Tupperware while gossiping and eating finger sandwiches, or a high-pressure salesperson trying to convince you how easily you can become a millionaire if only you and your friends and their friends and so on would buy and sell vitamins with him.

Both of these images couldn't be further from the reality of network marketing. It's neither a hobby nor a get-rich-scheme but an opportunity for you to earn money running your own part- or full-time.

But what does it take to succeed in this industry

Choose wisely. There are six key elements you should be looking for when selecting an opportunity].

1. Stability. How old is the company?
2. The products or services that consumers will use and need more of.
3. The pay plan-how even, fair and generous overall is the distribution?
4. The integrity of the company and the management.
5. Momentum and timing. Look at where the company's at, what's going on with the company, and if it's growing.
6. Support, training and business systems. You may have chosen a great company with excellent management, products that make a difference, a pay plan that's uniquely fair and very generous, and momentum and stability, but if you don't have a system in place that works, all of that doesn't matter.

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My rule of thumb for legitimate vs. questionable has always been the product. If the business makes all or most of its profit through the sales of the product or service provided by the business, then it is more likely to be legitimate. Those MLMs that make all or most of their money through signing up new members to the network set off my alarms...ditto for those in which you earn nothing or almost nothing from product sales until your downline is built up.

Best regards,

Molly Donaldson

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