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How do you distinguish a legitimate networking company from a scam?

Brad Sugars answered October 14, 2008
URL: http://www.entrepreneur.com/answer/221689
There are three main components to this question, and they would be 1. who are the people involved, 2. what is the product and 3. what is the plan?

Is the company a member of the Direct Marketing Association? How long has the company been in business? How many people are in the company? How many customers does the company have?

Can you speak to the executives about their background, the product and the compensation plan? All of these are key in your due diligence with any network marketing company, and you should have good answers to these before moving forward with any opportunity.

All the best.
Brad Sugars

Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.