Watch Your Step

Sheffield likens choosing a sponsor (the person who officially signs you to the business) to hiring an employee. "In reality, it's the reverse role here," he explains. "You don't work for the sponsor, [he or she] works for you-to assist you in being successful in the business model."

What's the danger of committing to an unqualified sponsor? You miss out on the consistent one-on-one coaching and the training sessions you need to be successful in multilevel marketing. "If [the sponsor] doesn't know how to be successful in the business, then you've got to look above that person in your upline if you want to find people to help you grow your business, and they may not have time to help you," Sheffield warns. "If you're not an experienced multilevel distributor, choosing your sponsor can mean the difference between tremendous success or predictable failure."