Multi-level marketing (MLM) businesses are some of the most popular home business opportunities, and have drawn a lot of praise from successful marketers and home entrepreneurs. However, they have also been subject to a lot of criticism from marketers, businesspeople, and commerce commissions, who claim that such programs are often nothing more than a front for dangerous pyramid schemes.

There is certainly truth to both sides of the story, as multi-level marketing businesses can vary greatly in terms of quality and legitimacy. For every ultra-profitable MLM business, there are hundreds of imitators, generally low quality start-ups looking to capitalize on their reputation. For wannabe home entrepreneurs, picking a multi-level marketing business to start with can be confusing, difficult, and sometimes quite stressful.

While the MLM industry attracts a lot of poor business, it is no reason to target and criticize the entire industry. There are some real MLM opportunities out there that are making home businesspeople very wealthy, and marketers that have found them are typically quite comfortable speaking about their success. Unfortunately, many new home entrepreneurs end up only seeing one side of the business — the sleazy, scam-riddled side.

1) Picking a good MLM business model.

When it comes to MLM business, you need a bulletproof personal filter. Picking a great MLM offer is by far the most important part of running a multi-level marketing business. Without a solid foundation, it is unlikely that your home business will pick up sales, and without initial sales it is very unlikely that you will expand further.

Look for signs of legitimacy and long-term potential right from the get-go. If your MLM business is online-based, look around for positive testimonials and reassuring discussion. Generally, MLM marketers keep in touch with one another, and industry boards can often be a great source of information for new marketers and discerning would-be MLM business people. When in doubt, look around for information and use it to shape and influence your purchases.

2) Paying an upfront fee to join.

This is the classic mark of a marketing scam, but it is also an element of many major MLM business operations. Some companies are highly focused on what they do best — marketing to other people — and do not have the time to deal with new members that might not be serious. As a filter, they request a small cost for the opportunity to use their services. Marketers pay the entry fee, prove that they are worth it to the advertiser, and are granted access to the information.

Of course, sometimes the entry free is not about quality control, and is merely a chance to monetize a poor operation. Just like before, it all comes down to prior research. If you are considering joining an MLM business that requires a small joining fee or initial purchase, look for positive feedback before you sign up.

3) Growth, profits, and expansion.

MLM businesses have huge growth potential. If you have found a successful MLM-based niche, remember to stick with it and expand the business. With some optimization and effective work, MLM-based home businesses can help you escape the cubicle world, work from home, and enjoy life to its fullest!

© 2010, Ask Steven Hippe. All rights reserved.