For some reason, whenever some hears the words MLM or network marketing, they automatically think of the word, scam. This can be caused by a couple of things. The first is that many people have heard about pyramid schemes where a company recruits people to recruit there friends and family and everyone ends up losing money. Another reason could be because enough people have tried and fail at network marketing that now, when the word comes to mind, the term network marketing scam automatically comes to mind.

Is network marketing a scam? Well, no, it's not. Network marketing is just a marketing model, a process. It just means products are sold through using one's network. If it was a scam, it wouldn't have existed for this long, well over 50 years. Now if you are considering to join an MLM company, you may want to think twice. It's not that you can't make money with MLM. There are many people who do. The problem with MLM is that many of them make exaggerated claims about just how easy it is to make money. Anyone who tells you that money can be made easily is definitely trying to make money off of you.

There are several things you will want to look for when looking for a network marketing company to join. The first thing is company history. You will want to avoid companies that haven't been around for more than 5 years. Most MLM companies go out of business within its first 5 years so the last thing you want is to build up all of this residual income just to lose it all when the company tanks. You will want to stick with companies that have been around for a while. You also want to find a company that sells products you can be passionate about. Sure, saving people money on their cell phone bill can be great but can you really get passionate about something like that?

The last thing you want to make sure you look into is whether or not the network marketing company focuses on the sales of products or the recruitment of people. I'll be straight up with you here. Pretty much all MLM companies will tell you to focus on recruiting. The more people who joins your downline, the more money you make because the more products will be bought. That's right. The reality is that most of the product sales will be bought by recruits. Sure, many companies will claim otherwise but try asking whoever is trying to recruit you how confident they are about selling the product to a regular prospect without trying to sell them on the business. Very few will be able to make a bet on something like that.

The bottom line is that network marketing is a powerful marketing method to sell high priced items. It works and that's why many companies use it. Making money with network marketing is another story. If you are approached by someone asking you to join, do a search before you make a decision. This type of business isn't for everyone. It requires hard work as well as dedication. If you want to start something that doesn't require recruiting people, you might want to consider starting an internet home business. Just remember, even with an internet business, you will need to be persistent and work hard in order to succeed.