Is the direct selling opportunity real or a scam?
Because direct selling is not governed by any federal law and even the state laws tend to defer in different places, direct selling has had a bit of a bad reputation as being fraught with less than reputable opportunities and in some cases outright fraud. The direct selling Association at www.DSA.org offers the following advice for checking out any panic selling opportunity before you buy into it.
- Identify the company that you are dealing with. Check out the recent list of member of companies or look into your local phone book.
- Take your time deciding. Be patient and look at all aspects of the direct selling opportunity. Look at the track record of the company. If you are getting in too late it might mean that you may not a very successful in recruiting others to join up to you in the case of a multilevel marketing business. A legitimate opportunity will not disappear overnight. Think about long-term business benefits and revenue potential.
- Ask questions. Contact the business opportunity and asked the company pertinent questions regarding its leadership, products, services, startup costs, cost of doing business, average running of distributors, return policies and anything else that you are concerned about. Get a copy of or company literature and read.
- Consult others who have worked with the company and its products. Check to see if the products or services are actually being sold to consumers.
- Investigate and verify all information. Don’t assume that the information presented to you by a person trying to recruit you into the target selling opportunity is genuine even if it is officially presented and it looks professional. Check all facts with the parent company.
- Check the list of direct selling associate members on www.DSA.org or call the Better Business Bureau, state Atty. Gen.’s office.