You?ve just returned from a friend?s cookware party and had a lot of fun and ordered some great new kitchen items. You talked to the MLM sales manager about becoming a sales representative yourself and hosting parties, and the idea of extra money and free products sounds very enticing. But, before you sign up for any MLM program there are a few things you should know about the company.

What?s the Investment?

One of the most important thing you must know is what is the initial investment, or how much money will you have to put up to join the company. Every MLM company is run differently. Some require little or no upfront money. You are a middle man who gets the orders from customers, places and receives the orders, and delivers the product and collects the money. You receive a percentage and the company gets the rest. Other MLM companies require that you buy the product first and then sell at a higher cost, keeping the profit. The second way is much riskier because if you cannot sell the product you may have to keep it. Many MLMs do not allow you to return product for a refund.

Are There Quotas?

A quota is the required amount in sales that you must reach. A company may measure this in actual dollars or amount of product sold. It is very important to know the MLM company?s required quotas. You need to know if you have the time and capabilities of meeting the requirements. If the quota is high and you do not make it you may be penalized financially or you may be limited in accepting future product until the quotas are met.

Are There Assigned Territories?

A territory is the area or market where you are allowed to sell the MLM company?s products (like CyberWize). Some companies have assigned territories for each sales partner and some have no territories at all. Both have good and bad points. Having a territory means you have an exclusive market but it also means you are limited to whom you can sell. No territory means you can sell anywhere, but then others can also sell in your area. Often conflicts arise when one market has too many sales representatives, so few make a good income because of the intense competition. You will have to decide whether having a territory or not will hinder income potential.

Are There Other Rules?

Working as a sales partner is often portrayed as being your own boss. However, most MLM will have specific rules that you must follow. These can include a dress code, sales methods, or hours of business. You must know these rules and if you are able to follow. For example, if the rules are that you have to make presentations in the evening, and you have childcare problems, then that MLM may not be right for you.

Working for an MLM can be fun and profitable, but always ask for the details before you commit to the company.

About the Author:
Frank Smith is a home based entrepreneur in Sarasota, FL. You can learn more about him by visiting his Cyberwize blog.