Commercial work or business is developing from time to time in the modern era like this. There is a kind of commercial work or business that is called Multi-Level Marketing, or we usually call it MLM, which is popular nowadays. This can be seen from the various MLM categories that somebody can choose. But what is MLM? Or how can we choose the right MLM opportunity?
Multi-Level Marketing (MLM)
MLM is a gradual or chained marketing strategy, where the compensation from selling the products is not the only thing that the product sales will get, but also the compensation of the product that is sold by their recruited product sales under them. There is a technical term that is used by the MLM member called ‘up line’ and ‘downline’ in this pyramidal or network marketing. In this system, the ‘up line’ have to recruit as many as possible ‘downline to earn multiple bonus or salary. On the other hand, ‘downline’ are the people who do the direct selling of the product.
This MLM system often triggers irresponsible people to do fraud. They often use this MLM system as the alibi to deceive people, since this MLM is already known by society as a beneficial business. That is why we have to be alert to this kind of MLM business offer.
How to Pick A Good MLM Opportunity
There are several things you need to do before choosing an MLM Opportunity. Those things are important to avoid you from fraud.
- Choose an MLM that is Registered to an MLM Association
You have to make sure that the MLM you are interested to join is registered to MLM Association. If the MLM offers international level marketing, you can check whether the MLM is registered to FITA (The Federation of International Trade Associations). If the MLM offers national-level marketing, you can check the association with the national scale in your country.
- MLM must have Credible Law Firm
Beside an MLM must have registered in an association, it also must own a credible law firm. Multi-Level marketing must have a Trade Business License, Company Registration Certificate and Taxpayer Registration Number. By having those licenses, an MLM company is responsible for their business, costumers and members satisfactory.
- Make Sure MLM has Various Products
MLM that have various products to sell, will attract people to join as downline. Having various products means that the MLM also offers various prices that allow people to choose the products according to the budget. This can be a big opportunity for the members to recruit downline. But you also have to make sure that the MLM company guarantee the quality of their products.
- Supportive Up Line, Credible and Fair to All Members
Before you are recruited by someone to join the MLM, you have to make sure that your Up line will help you to achieve success and this is very important. Research the MLM and make sure the system will benefit you and all the members.