Safety In Numbers There are organizations you can turn to when you're trying to choose an MLM company. For example, you should check to see if a company is a member of the Multi-Level Marketing International Association (MLMIA). Although companies who are active in the MLMIA are not automatically legitimate, membership is a good sign because it shows the company wants to get involved in helping MLM gain respectability. In any case, an MLM company should adhere to the MLMIA code of ethics, and so should you. Another organization that can help you is the Direct Selling Association (DSA). Here are some tips on evaluating an MLM company from the DSA: * Take your time. If an MLM company really affords a good business opportunity, it won't disappear overnight. Don't let someone pressure you to join now, because you'll be left out if you hesitate. * Ask questions. Find out about the following; 1) the company and its officers 2) the cost of its products 3) the start-up fee, including required purchases 4) the company's promise to buy back required purchases 5) the average earnings of active distributors * Get samples of all company literature. * Consult with others who have had experience with the company. Find out if its products are actually being sold to consumers. * Investigate and verify all information. Don't assume that documents are accurate or complete just because they look official. * Ask to see, in writing, the following information: 1) the business backgrounds of the company's principals, including any lawsuits or bankruptcies 2) audited financial statements -- operating revenues, sources of revenue profits and losses -- for the past three years 3) a complete description of all initial and future charges that you'll have to pay, as well as all other obligations you'll incur 4) a description of any sales training or other assistance the company will provide to you and to distributors you recruit 5) a list of the names and addresses of others who have signed up with the company 5) support for any earnings claims, including the percentage of purchasers who have actually achieved the results that are claimed 7) a description of any restrictions on what and when you must buy and sell.