(Note: These tips pertain to the industry cited above and do not necessarily track our experience with the company in whose report they appear. In particular, industry complaints referenced below are typical of the industry as a whole, but not necessarily every company in the industry.)
Before participating in any multi-level plan, be sure you have a clear understanding of the company's marketing plan. The Bureau recommends that any multi-level marketing plan be reviewed by an attorney to make sure the plan is in compliance with multi-level laws in your state.
Determine whether you will be required to purchase a certain amount of inventory to participate in the plan, and whether company policies allow you to return unsold inventory for a refund. In most multi-level plans, the company does not offer refunds to distributors.
You should personally examine the product or service you would be selling to make sure it has not been misrepresented. You should do research to see if there is a market for the product in your area, and consider your own ability to sell. Be cautious of inflated earnings claims. As an independent distributor, no one can guarantee that you will achieve a certain income level.
If this report is on a local distributor, be sure to check also on the Bureau report for the main company. That will be with the Bureau where the main company is headquartered.