1) MLM’s recruit too many salespeople, who in turn will then attempt to recruit even more salespeople causing over saturation and participants to lose money.

This does happen with some MLM’s which have a narrow range of little used products and can be detrimental to the participants.

However, if the MLM Company has a wide range of products and services and these are commonly used and well priced items then the problem does not arise.

2) Many companies involved in multi-level marketing are thinly veiled pyramid schemes only made legal by the presence of a product or service.

One has to be very careful to join only those MLM Companies that are genuinely selling products or services.

3) The ethical concessions necessary to be "successful" in many MLM companies are stark and difficult to deal with for most people.

If the products or services of the MLM Company are not what would normally be bought by your down line and they are not priced at or better than available elsewhere, without the participation discounts, then one must be cautious about pushing those products or services. Your morals and your friendships must remain more important than any dubious profits you can make with high priced or unwanted products sold to your unwilling down line.

4) Friends and family are targets for exploitation.

Friends and family should be treated as such and always as more important than any money you can make from them. Only offer them what would benefit them, not what would benefit you. Always think of their welfare first and foremost.

5) Meetings, tapes, seminars, videos, joining fees, annual fees and other costs

One has to be very careful not to join any MLM that costs too much to join or remain a member of. This is one of the biggest traps and the costs can sky rocket.

6) Minimum purchase requirements

This is another danger zone. One can land up with shelves and even rooms full of unwanted goods. One must try and stay away from MLM’s that make unrealistic demands on new recruits.

7) Only a few at the top make money

This is a very important point and many MLM companies are guilty as charged. The structure is such that a few people at the top make very good money and this is advertised, published and used as the bait to get new recruits. These types of structures mean that most of the down line do not make money and infect get into debt and all sorts of problems.

Be very careful not to join any MLM that is top heavy and trumpet how much their top brass is making unless you are there right at the start. You will almost certainly lose your shirt.

8) MLM sells a dream

Yes, MLM’s sell dreams and for some they come true. For most though it leads to disaster.

The dream is however a very good dream – ongoing passive income. This is more important than most people realize. Remember the saying about a rainy day? You may have your job and may be saving up, but there could come a “rainy day". For example, you could lose your job and you have to be prepared for that. One way is to build up an ongoing income with a good MLM.

Ok, now that everyone is frightened of joining the wrong type of MLM but is convinced they need an ongoing income, what can be done?

It is important to watch out for a few things when considering joining an MLM.

* Stay away from companies that have a “special niche" product even if it is the “best in the world".

* Stay away from companies that pay you for recruiting members

* Stay away from companies that have high priced products at the retail level, meaning the final consumer level.

* Stay away from companies that have too much of hype – they probably have something to hide.

* Stay away from companies that require you to buy minimum quantities every month to qualify for something or other.

* Stay away from companies that sell you their promotional materials and inspirational tapes at anything above what it would cost them.

* Stay away from companies that do not sell anything you would not normally buy or use.

* Stay away from companies that have only a few products.

Wow, is there any MLM Company left to consider? Yes, there are but they are a small percentage of the total. You have to hunt carefully and study every possibility.

However, the central thing is the dream of an ongoing income independent of your employment. There are many ways of achieving that and everyone must aim for it.

Email me if you want recommendations of companies that provide for the dream without the negatives.