Key takeaways
- Ask the company for documents and the upline for their own experience, then compare.
- Money and policy questions come first. Get those answers in writing before you pay.
- Specific answers with numbers and links are a good sign. Slogans and "it depends" are not.
What should you ask before joining a direct selling company?
Before joining a direct selling company, ask for its registration details, its compensation plan and income disclosure, the full cost of starting and staying active, its written buy-back policy, and how many of your sponsor's own sales go to customers who are not members. Get the answers in writing.
The 25 questions below are grouped so you can work through them in order. Each has a note on what a good answer sounds like.
Group 1: The company (6 questions)
| # | Question | A good answer sounds like |
|---|---|---|
| 1 | What is the company's registered name, address and registration number? | A full legal name, a physical address and an ID you can look up. |
| 2 | Who is the grievance officer, and how do I reach them? | A named person with an email and phone, not just a general inbox. |
| 3 | How long has the company operated in my country? | A year and a history you can verify independently. |
| 4 | Where is the official compensation plan document? | A link on the company's own website. |
| 5 | Where is the latest income disclosure statement? | A link, with the year and the group counted. How to read it. |
| 6 | Has the company faced regulatory action or consumer complaints, and how were they resolved? | A direct answer. Dodging is informative. |
Group 2: The money (7 questions)
| # | Question | A good answer sounds like |
|---|---|---|
| 7 | What is the total cost to join, including any kit? | A number. Joining is low-cost and the kit is optional. |
| 8 | Is there a monthly minimum purchase to earn commission or stay active? | A clear yes or no, with the amount and what happens if I miss it. |
| 9 | What other costs will I have: events, training, tools, delivery? | A complete list, with what's optional. |
| 10 | What is the buy-back or return policy for unsold stock? | A written policy: time window, refund percentage, conditions. What a fair one looks like. |
| 11 | Is there a cooling-off period after I join? | A set number of days with a full refund. |
| 12 | Which commissions can I earn from customer sales alone? | A specific list, not "it depends on your team". |
| 13 | When and how are commissions paid, and what is deducted? | A schedule, with tax deducted at source explained. |
Group 3: The product (6 questions)
| # | Question | A good answer sounds like |
|---|---|---|
| 14 | Which products are bestsellers with non-member customers? | Named products and repeat-purchase patterns. |
| 15 | What does each product cost per use, compared with a shop alternative? | A comparison that survives your own maths. How to work it out. |
| 16 | Which licences and approvals does each product carry? | Licence numbers on the label that you can verify. |
| 17 | What claims are allowed, and which are not? | Modest claims. No cures for serious diseases. |
| 18 | What is the guarantee if a customer is unhappy? | A written satisfaction policy. |
| 19 | Would I use these products if there were no business? | An honest yes from you. If not, think twice. |
Group 4: Your upline (6 questions)
| # | Question | A good answer sounds like |
|---|---|---|
| 20 | Who were your last five customers who aren't sellers? | Real people and what they bought. |
| 21 | What did you earn last year, after all your costs? | A number, even if it's small, and honesty about costs. |
| 22 | How long did it take you to reach the rank you show? | A realistic timeline, including slow months. |
| 23 | How much of your team's training is about product and customers? | Most of it. |
| 24 | What happens if I only want to be a customer, or stop after three months? | "Nothing. You're free to leave and use the refund policy." |
| 25 | Which of your team's events, tools or courses are optional? | A clear list, with who earns from each. |
How to use the answers
- Send the company questions (1-13) by email and save the replies.
- Ask your upline questions 14-25 in person or by message and note whether the answers match the company's documents.
- Mark each answer as specific, vague or missing. Missing answers on money questions are a reason to pause.
- Cross-check with the red flags checklist and wait at least a week before paying.
If you'd like a neutral second read of the answers you get, send them by email.
Frequently asked questions
Who should I ask these questions to?
Ask the company (by email or its customer service) for documents, and ask the person inviting you for their own experience. Compare the two. If the team's answers don't match the company's documents, trust the documents.
Is it rude to ask for answers in writing?
No. A legitimate company and a serious team expect it. A written answer protects both sides, and reluctance to write things down is itself information.
How many questions should I get answered before deciding?
All the money and policy questions (groups 1 and 2) should be answered in writing before you pay anything. The product and people questions help you judge fit.
Sources
- U.S. FTC Consumer Advice: Multi-Level Marketing Businesses and Pyramid Schemes. consumer.ftc.gov
- U.S. FTC: Business Guidance Concerning Multi-Level Marketing. www.ftc.gov
- Department of Consumer Affairs, India: Consumer Protection (Direct Selling) Rules, 2021. consumeraffairs.nic.in