MLM Recruiting – How To Avoid ‘A Madoff’ And Find A Reputable MLM

Nearly everyone that has anything to do with money, loans or investing (which is nearly everyone) has heard about the Madoff scandal that rocked the financial world and was even a key factor in the demise of some of the largest companies and banks out there. Here we will be coining a new phrase pertaining to investment failure and deceit, ‘A Madoff’. As well we will take a look at how you can find a reputable MLM company and avoid ‘A Madoff’ yourself. The lessons in this financial scandal pertain to small business investors (MLM participants) as well because not only did it affect large investors and companies, smaller investors didn’t know that their funds were invested with scammers. If you’re not cautious your money could be going to scammers who intend to keep you in the dark leaving you with no return on your investment, or worse yet, in the hole. How to find a reputable MLM:• Study any available related information (e.g., a brochure, any business guidelines, websites that list scams) before handing over any of your money. Verify whether the MLM you are considering has a strong, knowledgeable leadership in place and if these people actually exist or if they are a figment of someone’s imagination. • Find out about fees. Does your MLM just take a percentage of your revenue or will there be fees for training, materials, etc, that are not being disclosed. Find out if your recruiter has put any of his/her own money where they are expecting you to put yours, and if so, how much? Theoretically, a recruiter with his own money at stake will have more motivation to conduct business on the up and up. • Request specific details about the level of support and training prior to investing. Has the leadership in the company demonstrated positive results, been available to new members, provided relevant training material and become a success themselves? • Ask to see actual records. Try not to settle for the internet copies of sales reports with all the pertinent information blacked out (yes we’ve all seen what I’m talking about). Ask if you can see a hard copy of sales. As well find out if you will receive periodic reports on your personal sales or will you have real time access to your own account. • Do research your own. To avoid ‘A Madoff’ check with the Better Business Bureau and the FTC to find out about records of registrations and if there have been any complaints or disciplinary actions. At the very least, search Google with the company name, leadership names or even the name of your recruiter. Even though this search is far from giving you complete information, there’s a chance that you might see a red flag. Basically to avoid ‘A Madoff’ when it comes to an MLM, do your research and do not hesitate to ask questions. Lets’ face it, an MLM is in the investing arena. You invest your time and at times your money. There are never any true guarantees in life or business but by asking the correct questions, you may help to reduce your risks in investing.