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5. Joining A Start-Up Company

Not all start-up MLM opportunities are bad investments. Some entre-preneurs make it big by getting in on the ground floor of a young, promising company. But if you're new to the network marketing industry, don't take the risk. Many MLM companies go out of business just months after start-up.

"The prudent person should look for a track record of about a year or so," Babener advises. "That's not to say that some people won't do very well [with a start-up company], but it's kind of like the advice 'Don't play the commodities market unless you know what you're doing.' "

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