The Risks And Rewards Of Multilevel Marketing
North American Precis Syndicate
Before you take up network marketing, there are a few steps to consider. (NAPS)
(NAPSI)—Many retirees and others looking for extra income consider
what’s known as multilevel marketing (MLM) or network marketing. It’s
a type of direct selling where products are purchased from a company and sold
through independent contractors. These contractors make commissions from what
they sell, and from sales made by people they recruit.
It doesn’t always work out the way they hope, however, according to
a new survey from AARP Foundation, the affiliated charity of AARP. A few
facts and hints may help:
• Among the more than 20 million Americans who have participated in
MLM organizations, 90 percent got involved to make money.
• Nearly half lost money.
• A quarter made no money.
• Two-thirds would not join the same or another MLM organization
• 39 percent stopped participating because it felt awkward to pitch
to friends and family.
• Four out of 10 say the company misled them about their chances for
• MLM participants are primarily women with college degrees.
• One-third were recruited by a friend and 12 percent by a family
“We have witnessed many of our constituents joining these
organizations, sometimes to their financial detriment. We want consumers to
become better educated about MLMs before they invest valuable time and
resources,” said Amy Nofziger, Program Director with AARP Foundation.
To help, AARP Foundation suggests these four things:
1. Set your expectations and
understand the costs. Recognize that MLMs require patience, persistence,
and an investment of time and money. Make sure you’re clear on what you
expect to get out of participating and what’s expected of you from the
2. Do your research. Thoroughly
investigate the company. Visit the websites of the Better Business Bureau and
Federal Trade Commission to see if there are any complaints about the
company. Speak to current representatives and recent participants. Conduct an
online search of the company name featuring keywords such as “work
hours” and “incentives” to see what others are saying.
3. Get comfortable with selling.
How do you feel about having business conversations with close friends and
4. Can you afford startup costs?
Are you OK taking risks with your money?
For further tips, resources and educational videos, and to download the
toolkit “Multilevel Marketing: The Research, Risks and Rewards,”
““We want consumers to
become better educated about MLMs (Multilevel Marketing) before they invest
valuable time and resources,” said Amy Nofziger, Program Director with
On the Net:North American Precis Syndicate, Inc.(NAPSI)