I’ve gotten into some interesting debates on forums, but the other day was pretty much the most interesting of all of them. We were discussing network marketing opportunities and what makes one legit and what makes one not legit? The answers we came up with might surprise a lot of you folks out there. So if you’re not sure, pull up a seat and have a listen…or a good read.

I’m sure you’ve heard of a company by the name of Amway, right? Sure you have. Everybody has. Well, would it surprise you to learn that this “legit” company was at one time warned by the FTC about its business model? It’s true. Now, you’re probably wondering why. Well, in my explanation of what makes a company legit or not, you’ll understand.

It is commonly believed that for a company to be considered legit, they have to sell a viable product. While this is true, it is only part of the story. See, a lot of companies have a structure where somebody IN the company can buy product and thus, by doing so, earn themselves a higher commission base. So in order to keep companies from essentially selling to themselves, there is a rule put in place by the FTC that 70% of the sales made by the company MUST go to the general public. If not, then the company is in danger of being in violation.

There are many companies out there who are treading on thin ice because of this rule. But more importantly, as somebody looking to get into a company like this, how do you REALLY know that they’re legit. You can look at their business model and see that they’re selling a REAL product, but how do you know how much of that product is going out to the general public? You DON’T know…and therein lies the rub. So while you might be thinking that you’re getting in with a legit company, you’re not going to really know without doing some hard digging first.

Things are not as cut and dried as you might think. What may appear to be legit on the surface can be in violation of FTC regulations anyway. So be careful. Do your homework. Make sure you’re getting into a company that’s solid. A good rule of thumb, though not fool proof, is to pick a company that has been around for a while.

To YOUR Success,

Steven Wagenheim

Looking for a solid 4 step plan to building your own business… FREE? Pick up my free report at http://www.stevewagenheim.com/4steps.html and get started TODAY!