Legitimate Home Based Businesses

Question: Do you think most multilevel marketing opportunities are Legitimate Business opportunities or scams?

I am specifically wondering if West Coast Wellness is legitimate? I went to a 2 hour presentation and was told it takes $5,000.00 to get started. I told the guy I didn't have that kind of money. He said if I was really serious, I would come up with creative ways to get the money like taking a an advance off my credit card or line of credit. When I said I wanted to think about it, since I I had been burned by other MLM's in the past, he tried to assure me that me that my only problem was lack of belief. He than seemed to look down on me when he said that they are only interested in people who are serious. He went on to say that most of the people involved were doctors and lawyers. I felt as if his underlying message to me was either take a risk or die in my miserable poverty. I really want to change my financial situation. I am interested in wellness and I liked the products, but do these things really work? It all just seems too good to be true. Does anyone have any insights?

Answer: Before you 'invest' check out http://www.mlmwatch.org/ - they have a list of resources regarding MLM schemes, what to watch out for, consumer complaints, and recent government action against MLM companies.

Also check out the Federal Trade Commission warning/alert on MLMs http://www.ftc.gov/bcp/conline/pubs/invest/mlm.htm

Here are the main points from the FTC:

The Federal Trade Commission cannot tell you whether a particular multilevel marketing plan is legal. Nor can it give you advice about whether to join such a plan. You must make that decision yourself. However, the FTC suggests that you use common sense, and consider these seven tips when you make your decision:

Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.

Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.

Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.

Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.

Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.

Don't pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.

Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.

MaxGXL: Legitimate Business Opportunity Or Scam?

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