Printable checklist
Questions to ask before joining an MLM
Use this before you pay, buy product, subscribe, attend a paid event, or contact friends and family.
Start here:
- You do not need to decide today.
- You can ask for written documents.
- A serious opportunity can survive a pause.
- You can protect the relationship and still say no.
Income disclosure means a document showing what people typically earn. Gross income means money received before expenses. Net income means money left after expenses.
Ask these in writing
- Can you send me the current income disclosure?
- Are the earnings gross or net of expenses?
- What is the median participant income?
- What percentage of participants earn nothing?
- What expenses are required or commonly encouraged?
- What percentage of sales are to customers outside the participant network?
- Do I need to recruit to earn meaningful income?
- What must I buy, subscribe to, or maintain?
- What is the refund, cancellation, subscription, and inventory return policy?
- Can I take 48 hours to review everything before paying?
Simple message you can send
I am interested enough to review the details, but I do not make money decisions during a meeting. Can you send me the income disclosure, compensation plan, expense list, and refund rules? I am going to take 48 hours to read them.
Terms to define before you pay
- Compensation plan: the rules for how participants are paid.
- Autoship: a recurring product order or subscription.
- Rank maintenance: requirements someone must keep meeting to stay at a commission or rank level.
- Downline: people recruited under a participant in the compensation structure.
Read next
- MLM red flags: pressure, income claims, inventory, and recruiting
- Before You Pay
- MLM expense worksheet
- Documents to request before joining
- Scripts you can use
- Income disclosure library
Sources
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Regulator guidance
Multi-level Marketing Businesses and Pyramid Schemes
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Regulator guidance
Business Guidance Concerning Multi-Level Marketing