Legality of MLM

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Before going into multilevel marketing (MLM), check out your company first if it is operating legally. The criteria that you should take into consideration are the following:

Is the company carrying a good quality product that can be retailed?
Does the product reach the end user through independent contractors (direct sales representatives) and not through retail establishments?
Is the company’s compensation plan designed to reward the independent contractors for the sale of the product and not just through the introduction or enrollment of another participant in the program?
If the answer to all of these questions is “yes,” then you are dealing with a legal company.

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