MLM, Direct Sales and Network Marketing are words that have been used interchangeably in many circles, but they are not necessarily the same thing.
Most people get excited about joining a company at a meeting or during a presentation, only to have buyer's remorse a month or two later, and a shelf full of unused products to boot.
As the Direct Sales industry continues to grow exponentially, how do you know if you're getting into a company that will work for you? The promise of mining for MLM gold is to attain total financial freedom.
The problem is, multi-level marketing companies are sprouting up all over the place, and there's just too many of them to keep up with, for the average extra-income opportunity seeker.
Add to that the start-up costs, required inventories and training costs of some companies, it makes choosing a company a frustrating and time-consuming process.
Consider the following eight points before signing on the line for any company:

• Realize you are starting your own business.
  Regardless of what anyone's telling you, even if you only sign up "to get the discount", there are business and tax ramifications to joining any direct sales company.
  Make sure your recruiter is keeping you abreast of the possible financial impact of starting a new business.
  Be sure to find out exactly what you'll be getting in return for your initial sign-up fee.
  Are there product samples? sales materials? A good starter kit should have everything you need for your first month or so of business, including order forms, product samples, training guide, and anything else specific to making your transition into your new business successful.
  
• Think about the product line.
  Many times, companies encourage you to become your own best customer.
  If you're the only one buying your products, however, you're likely to be spending more than you're making on a monthly basis.
  Is it a product that you would use regularly, and freely recommend to your friends? Is it more valuable or more convenient to use than similar products available elsewhere, particularly at the stores in your area? You can find just about any product under the sun being sold via MLM or Direct Sales.
  But can you be successful selling it in your area? Also consider delivery.
  What is the shipment turnaround and delivery time frame? Will it ship dire ct to consumers, or will you be required to deliver products? Will you need to keep an inventory on hand? Most Direct Sales companies adhere to the 70% rule, but that doesn't always mean you won't carry an inventory.
  
• What do you know about the company history?Make sure the company provides you with professional sales aid materials, and that they're reasonably priced - many MLM companies rake in tremendous profits just selling brochures and/or other sales literature.
  A good company will provide online copies of sales materials you can print at home as well.
  Find out about the company's financial backing and corporate officers.
  Check with the Direct Selling Association to find out if the company is registered there.
  Members of the DSA are held to a strict code of conduct regarding enlisting new team members.
  Be sure to understand/know how the company keep track of all the incoming orders and when, as well as how, you'll be paid.
  
• Understand that this is a selling proposition - you will be required to do at least some face-to-face selling - and it may require a lot of your time - especially at first.
  Expect to devote the first few weeks to product knowledge and business building.
  
• "Common market" products (vitamins, wrinkle creams, candles, even food) face intense competition.
  They must have a unique selling point that sets them apart from anything you can buy (usually for much less) in the grocery store.
  
• What kind of training is provided? Besides your recruiter and your manual, are there training materials available to guide you through product knowledge, recruiting, and selling aspects of your business? Is there a cost? Many companies today provide teleconferences, online training, and monthly meetings in addition to personal instruction - and good companies do it at little or no charge.
  Make sure you know what's available and take full advantage of it.
  
• Consider the methods of selling: door-to-door, home parties, public seminars, by mail, or a combination of all these methods.
  Some companies have strict rules about methods of selling, and it's important to know what you can and can't do according to the company rules.
  Once you've decided on a company and product line, familiarize yourself with the marketing materials, training and acceptable sales methods.
  
• Most companies pay based on total sales, with a bonus for hitting monthly sales goals, as well as leadership bonuses.
  Make sure you are familiar with what you can earn as a new start.
  Don't be fooled into thinking you'll be earning as much as a leader at the top of the pay scale when you first start out.
  That takes time - or a whole lot of selling! Plan the amount of time you'll spend in actually trying to sell the product.
  Know the average ticket sale per customer as well as any minimum orders, or in the case of party plan companies, the average show sales.
  These figures can help you determine not only where you need to improve your skills, but also approximately the amount of money you can expect to earn on average.
  The more presentations or sales calls you make, the more money you're going to make - but unless you make those sales calls, you won't be making any money.
  

Ultimately, it's up to you to decide just how much time you'll spend with your extra-income producing project.
If you're looking to replace a full time income, it takes more work on the front end of the business, but over time, Direct Sales can be a lucrative way to transition out of an 8-to-5 work lifestyle.
Just remember, it's up to you to do your due diligence before investing in ANY business venture - be it real estate, MLM, direct sales, or anything else!