For many who want to work from home joining an MLM (multi – level marketing) company can be both profitable and fun

As an MLM member you make your money selling products or services offered by an established company to other MLM participants. And if they are not a member you sign them up. Then you make money from your own sales and receive a percentage of theirs (they are your downline.)

This all sounds good, but the line between MLM and a pyramid scheme can be easily crossed. Participation in a pyramid scheme can earn you jail time, as they are illegal.

But how do you tell if the business opportunity you are looking at is a genuine MLM concern or a pyramid scheme?

The big difference between an MLM and a pyramid scheme is the way you (and others) operate the business. In a real MLM set up the whole purpose of working is to sell the products and services. Recruiting new members only serves to expand the sales potential.

In a pyramid scheme situation though, once the operators have your money you are told your sole goal is to recruit other “distributors” (also known as suckers).

And that is we here you have to pay close attention before you get yourself into trouble. Where is this company’s focus? Selling a great product and encouraging others to do so along the way or recruiting as many other people as you possibly can and if you happen to sell a little product along the way that is simply an extra? If the latter is the case, run, as chances are you are dealing with a pyramid scheme.

If you find the idea of joining an MLM company appealing do your homework before you sign anything. Do not take the recruiter at their word. They may indeed be very honest but this is your income and possibly even your liberty at stake. Check the company out with the Better Business Bureau. Try to track down people who have actually bought the products or services the company is offering and find out if they really are of high quality or indeed if they exist at all.

MLM marketing can be a profitable way to make money from home, there are many successful and legitimate companies out there. Just make sure you know exactly what you are getting yourself into before you sign on the dotted line.