Legal Network Marketing Opportunities |

Legal network marketing opportunities are often difficult to distinguish from illegal look alike ones and so some investigation into each is appropriate for understanding the difference. Another word for network marketing is multi level marketing or MLM, and has been around for decades. Many very well known companies have used mlm strategies for growing their companies over the past seven decades and have made believers out of a few people and skeptics out of many. In fact, there are a plethora of sources that warn against any involvement in even legal mlm opportunities simply for the fact that only the people at the top of the food chain really benefit from belonging to such a program. So mlms are legal but most, if using the unilevel approach to selling and recruiting are mirror images of pyramid schemes which are illegal.
Legal network marketing opportunities come from organizations that place more emphasis on the product than on recruiting. Mlms might only be able to say that the difference between the traditional mlm approach to marketing and an illegal pyramid scheme is attitude and motive. Frankly, that's about as nebulous as one gets and certainly cannot be ascertained by any calculable and measurable standard. The actual difference between a pyramid scheme and a legal mlm is in the selling of product. A pyramid scheme puts more emphasis on the associate recruiting people to sell for him than on the actual sales a representative makes. So state courts have developed the 70% rule stating that if less than 70% of company sales come from outside the associates' purchases, it is a pyramid scheme.

This really brings the discussion to the overall nature of legal network marketing opportunities. Basically they are opportunities from which most people drop out for studies show that 80% of new associates drop out within twelve months. This shouldn't be surprising because the whole idea in mlm is for people to build a business and what type of person starts and successfully builds a sustainable business? An entrepreneur/salesperson is the type of person who can do very well at enterprise building. But all walks of life are welcome in an mlm as long as the person pays the membership fee and buys some product and since an mlm is built on making the most money by getting people under you, recruiting is mandatory for the business to grow. But what does a non salesperson, non entrepreneur do after they have often annoyed the beans out of family, neighbors and coworkers? You know, they drop out because it's not their nature to drive on to make legal mlm opportunities happen.

One of the big reasons for the dropout rate being so high is the lack of making much money out of the chute. The typical unilevel approach to mlm compensation plans provides penny ante profits for the typical new recruit for many months and possibly years. For the amount of money and time and effort that can be spent on the building of a business, the actual compensation is quite low. Discouragement and disillusionment from miniscule checks is understandable. And because the dropout rate is so high with an mlm, much of the effort of a new rep is taken up with replacing those who were supposed to provide him with additional income. In order for any mlm to be the slightest bit associate friendly it needs to provide every new recruit with exactly how much money each level of the pyramid is making. Legal network marketing opportunities that do not provide such a report, documented by outside credible sources, should be avoided at all costs.

There is one of the many legal network marketing opportunities compensation plans that appears to show some promises and that is the binary compensation paradigm. In simple terms it allows only two others to be recruited as associates and increases the profits for those directly above and below one's own tier. It's not perfect but far fairer in compensation than the unilevel approach. One of the basic suppositions in physics is that everything is in a constant state of change. But nothing changes with God. "Before the mountains were brought forth, or ever thou hast formed the earth and the world, even from everlasting to everlasting, thou art God." (Psalm 90:2) There are some very important things to remember before becoming involved in legal network marketing opportunities.

The Federal Trade Commission's guidelines on deciding whether or not an mlm program is legal or not includes some eye opening warnings. For example, any plan that includes commissions for recruiting should be avoided as well as steering around any plan that asks new associates to buy relatively large quantities of inventory. It would be difficult to ascertain, but certain legal network marketing opportunities may have actually use shills or decoys to promote a financial success story that never happened. Waving around checks and illusory promises of fantastic wealth should be avoided at all costs.

More and larger and very well known companies are beginning to use direct sales as a part of its retail business. The names of these companies would surprise the reader. So one day soon, if it has not happened already, the reader will probably be invited to an mlm presentation. It will begin with a presentation about a fabulous product. If it's a health product, certain claims about the product's values can be legally made, if they have been cleared by FDC regulations. If it's some sort of gadget or appliance, how does it compare with similar products already on the market and is the extra cost for his product (which there always is) worth it for the consumer? The odds will be against the new recruit, but maybe this one will be the one of the legal network marketing opportunities for which everyone has been waiting.

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