In the internet world of multi level marketing (MLM) it is not such a difficult task to get ripped off. In fact, there are more people getting scammed than there are people making any money at all. There was a guru in the MLM industry who was duped by a well known TV actor to buy into an MLM. The guy was sitting in front of his television one late night and suddenly the actor came on in an infomercial and swung around in his chair to face the camera. He proposed a MLM program for 200 dollars and directed people to a site that would make them virtual millionaires if they signed up.

This guy followed suit like many others and signed up with the site using his credit card just to be presented with a product that was nothing but an endless list of similar sites asking for payment in order to get access to many sites that offered get rich quick schemes. This got our guru thinking about MLM and decided to start his own business – not to cheat people and he succeeded in making millions on the net through MLM.

However, this just goes to show that even gurus get cheated some time or the other. This is why it is important to be prudent in choosing the right MLM before doling out your cash. How do we go about choosing the right MLM? To begin with we sign up with as many forums as we can and research which MLM programs are actually earning people money. Once we have narrowed down our search and just to be sure if the posters of the forums are not paid posters, we analyze the MLM a bit further.

We should check to see if the MLM is not more than 5 years old. This makes it highly unlikely that you will be able to get affiliates. Get a feel of the producer and try to understand who your target market is. Ask yourself if people will really want the product and if there is scope for the product. Would you love to have the product, because if you don’t like the product you cannot successfully sell it.

Research who the owners of the company are and what their record is like. Analyze the compensation plan. Try to understand if it is fair or if the company is making more profit than you are from your sales. A good MLM will let you make more profit from each sale because they are making profits from multiple streams. Finally go with your gut feeling. One doubt and you should drop the plan of joining up. There will be many more opportunities.