Multi-level sales companies are currently leading in the Bureau’s list of most-inquired about industries for this year. We know that many South Plains residents are getting involved in various multi-level sales of travel, health-related items such as vitamins and nutrients, and cosmetics. Most recently, we have heard that investors are putting large sums of money – up to $5000 – in multi-level sales companies, hoping to earn that back and more within short periods of time.

It is possible to build a successful multi-level business with comparatively little start-up money, but you should keep in mind that it is not a means of “getting rich quick”. It is hard work and requires lots of recruiting, training and managing as well as using marketing skills. How do you tell a legitimate multi-level marketing opportunity from a pyramid scheme? Your BBB offers these tips:

• Be wary if the start-up cost for the investment is substantial. Legitimate multi-level marketing companies usually require a small start-up cost. Pyramid schemes pressure you to pay a large amount to become a “distributor” The promoters behind the scheme make most of their profit on the signing up of new recruits.

• Find out if the company will buy back inventory. If not, watch out.

• What is the consumer market for the products? If the company seems to be making money by recruiting alone, stay away! Remember that multi-level marketing depends on selling to consumers and establishing a market for quality products while pyramid schemes are not concerned with sales of products. Rather they focus on profits to be made on volume sales to new recruits who buy the products in order to participate in the scheme.

• Before investing, get all the facts about the company, its officers, and its products. Find out the start-up cost and the company’s buy-back policy.

• Get written copies of the company’s marketing plan, sales literature, etc.

• Check with others who have experience with the company and their products. Are the products actually being sold to consumers?

• Check the company out by contacting the Better Business Bureau locally as well as where the company is headquartered. You can logon to: www.bbbsouthplains.org and www.bbb.org