Legitimate MLM Opportunities (BBB Accredited Companies)
Do you want to find good multi-level marketing opportunities that will enable you to make money both from direct sales to customers as well as from passive income streams?
Working with legitimate, honest, and trustworthy MLMs is the best way to avoid the risks of being exploited, overcharged, scammed, or ripped off.
The following list provides information about network marketing companies that were approved by the Better Business Bureau after being thoroughly reviewed by the national consumer organization and successfully meeting all their strict requirements.
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Multi-level marketing (MLM), is a marketing strategy employed by many direct sales companies for the sale of goods or services.
This business model is also commonly referred to as network marketing, referral marketing, or home-based business franchising, and is used by many brands in a variety of industries.
The revenue of typical multi-level marketing companies is derived from non-salaried individuals – often known as independent business owners, distributors, consultants or associates – who sell the company’s products or services directly to prospective customers.
People who join such programs can earn money in two ways.
The first is by making direct sales to their own retail customers, mainly through personal connections, social relationships, natural circles of acquaintances and word of mouth.
The second is by recruiting other distributors and receiving a percentage of the income these salespeople generate (as well as their downline, i.e. their direct and indirect recruits beneath them).
The bigger the member’s downline, the more passive income he or she can make.
Some MLM programs are crafted with attractive rewards that are given to their top performers who hit their sales targets.
Such incentives may come in the form of handsome cash bonuses, dream vacations, and even luxury cars.
Consumer Tips: How to Avoid MLM Scams Online
Just like any other sector that involves business opportunity seekers, companies that offer them, and money that switches hands, the network marketing industry also has its fair share of scammers, fraudsters and cybercriminals that operate online and look for potential victims.
Scammers use a variety of illegal, unethical or dishonest ways to recruit new participants to their program.
Some MLM companies are nothing but a clever front for pyramid scams that focus mainly on new member recruitment and the sale of products to these new participants rather than on selling to actual end customers.
Others require high entry costs for joining, attending participant conventions, attending training events, paying program membership fees, or purchasing a distributor starter pack. The starter pack usually includes advertising materials, samples, and an initial inventory.
Some MLMs impose a minimum monthly order value in order to stay an active member, maintain a certain membership status, or enjoy certain benefits.
In addition, bad companies in this industry use complex or confusing compensation plans, make unfounded or bogus claims, spread false promises of big earnings effortlessly, or offer products of little value or at inflated prices compared to other competing options in the market.
Taking the following steps will help you to find credible and reliable network marketing companies to work with:
Closely Examine the Opportunity
Remember that not all network marketing opportunities are created equal, and some may not be actual MLM offers at all, but illegal product-based pyramid schemes in disguise.
Avoid joining shady companies that put much more emphasis on recruiting other associates than selling their actual products to real customers.
Make sure you totally understand what you’re getting into before becoming a commission-based sales representative.
While direct sales is generally a legitimate way to start a home business relatively quickly, be sure to act responsibly and do your own fact-finding research when evaluating whether a given opportunity is right for you.
Make sure you get the answers to some basic questions: How much startup capital is needed? Can you cancel the agreement and get a refund for unsold products? Do you feel comfortable pitching to relatives, friends, coworkers, and local community members?
Investigate the MLM Company’s BBB Record
Check the company’s record on the Better Business Bureau’s website.
This information will help you evaluate whether it’s a legitimate business that deserves your money and trust or if you need to look elsewhere.
Look for current BBB ratings, customer reviews, complaints, warnings and alerts on their business profile.
In addition, learn how long it has been in business – a potential indicator of experience and reputation.
If the business is not even listed with the BBB, this is a very bad sign.
On the other hand, if the network marketing company is certified as a BBB Accredited Business, it’s an important positive signal.
Pay Close Attention to Red Flags
Learn how to better protect yourself when ordering goods and services on the internet in order to avoid scammers and keep safe in general.
Knowing how to check if a website is legitimate or not is the first line of defense.