Home based business and network marketing are synonymous terms to a lot of people. While there are a lot of home based business that don’t involve network marketing, most network marketing companies advertise themselves as home businesses. Unfortunately, some network marketing companies are ‘less than legitimate’ to put it nicely. So what is the one thing to watch for when looking at a network marketing opportunity?
There are lots of factors that go into choosing a network marketing company that will be a good fit. However, there is one thing that can serve as a red flag for network marketing companies to avoid. Simply look at the product or service they provide and ask this question: Is the product or service marketable independently of the opportunity?
If people aren’t likely to buy or use the product or service unless they also join the opportunity, then you may be looking at a pyramid scheme. That is one of the major factors the FTC looks at when deciding to go after illegal schemes and you should look there first as well. A network marketing business shouldn’t have its opportunity so wrapped around the product that there is no real value to the product (or service).
So when looking at a network marketing business, be sure to look beyond the hype and take a hard look at the product or service it’s offering. Avoid the marginal ones that could turn out to be shut down later as a pyramid scheme. A good network marketing company should have a healthy balance between product (or service) and opportunity.