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The payoffs and pitfalls of multi-level marketing

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Working from home is a possibility, now that more and more companies are offering telecommute opportunities. The most common work from home job is a sales representative for a multi-level marketing company.

Amanda Thayer is a mom of 2 and works for a popular health and beauty multi-level networking company. But, when her kids were younger she was working in corporate America. Every day she scrambled to get her kids to school, make it to her meetings on time and still make ends meet.

“You get stuck in that hamster wheel of life, both working, kids are in daycare, you know you're paying your bills with just a little bit left over at the end of the month," said Thayer.

Seven years ago, Thayer was approached by a friend to sell for a multi-level marketing brand. She didn’t quit her day job, but she decided to try and sell products on the side.

"I thought you could only make a little bit of money and only the person at the top could be successful," said Thayer.

After years of hard work and being persistent,Thayer was able to quit her day job to work full time as a networker for the health and beauty company.

But, not everyone is as successful as Thayer when it comes to multi-level marketing companies. According to the Better Business Bureau, it’s important to watch out for pyramid schemes, which focus more on recruiting others than the actual product.

Here are 3 steps to take before investing:

Research, get all the facts about the company and its products.

Get written copies of the company’s marketing plan, sales and literature.

Find out the startup cost.

Not everyone climbs to the top fast; Thayer says you need to be persistent and stick with it.