There are Five Questions You Should Ask Before Joining Any MLM Opportunity that you would work with for the next five, ten or twenty years. Getting the answers to these questions will save you years of failure and the tag of a being a frustrated network marketer.
REMEMBER… IT’S NOT ABOUT THE PRODUCTS. You are in this to make a dollar..find a company who has you in mind when it comes to the compensation plan. You can have the greatest products on the planet, but if your company does not have all 5 pillars, you can have everything taken away from you overnight. Don’t laugh…read here…http://www.mlmwatchdog.com/MLM_Bazi_Xelr8_Distributor_terminations.html
- Company Management Experience with Integrity-Read your Policies and Procedures. Look for the words “termination” and “ongoing”. Find out how safe you are, how your downline is protected, and whether you can ever retire.
Rule of Thumb: The longer the contract, 12 or 15 pages plus, and the more overhead the company has, the less you will earn. The longer the PnP’s the more places to hide nasty termination without cause clauses.
Experience has taught us to do a Google search on the company and the owners of the company you are researching. Add the word "scam" to your search. Check reliable websites like www.mlmwatchdog.com, and ripoffreport etc. for warnings.
Beware of companies where you can buy your way to the top. Beware of sponsors offering you a “good position”. There should be no “deals” in an ethical company. There must be a level playing field.
Check eBay to see if the company’s products are being sold there much cheaper than on the company website. If they are the distributor is not able to sell them at the wholesale price even. This is a clue that products are too expensive and not value priced.
- Timing in the Company / Timing in the Industry Beware of “ground floor opportunities” and start-up companies. 99% of companies don’t last two years.
Most people don’t make money in the first two years while the company is dealing with problems. Profit comes AFTER two years. Join then.
Do not join a company with a product with no profit margin, e.g. long distance, video phones, (heck you can video chat on Skype and other video capable sites for FREE), out of date products like vinyl records!
- Remarkable Product-Be sure your product is unique – not invisible among others.
Read Seth Godin’s “The Purple Cow”.
Warning: If the product would not sell without a business opportunity attached, it is ILLEGAL. Tools to build your business like "business in a box" and affiliate auto-responders with a compensation plan attached are illegal. e.g. using Skype to build a list. Skype is a tool. You have to have a product that is consumable by the end consumer.
If you can’t pay online with a credit card, and if you can only pay by cash or money order, to the creator of the system, it is ILLEGAL. Again check out MLMWatchDog.
If distributors collect the money while the company stays at arm’s length, it is ILLEGAL. e.g. Easy Wealth Solutions…Pyramid Scheme, run fast and run far.
- Compensation Plan That Pays Part-Timers95% of networkers are part-time. Make sure that people can make a decent income working a few hours per week.
Beware of companies that advertise how many millionaires they have created. Make sure it’s not at the expense of those “at the bottom”, part-timers). Everyone should be able to benefit. It is a level playing field for all.
Ask the question “How many people must I have in my business to earn $10,000 per month?” There are companies out there that require as many as 27,000 and as few as 1000 active distributors and customers to build a walk away residual income. It’s not unusual to see well-established companies that
require 3000 to 7000 people, and still attract new distributors. It appears to me to be more attractive to only have to build a downline of 1000 distributors or less. Work smarter not harder.
If your upline won’t or can’t answer this basic question, you should run.
If a company stresses “Recruit, Recruit, Recruit!”, you should “Run, Run, Run!”
The key to success is moving product from the company to the end consumer. This is where the residual income is generated. Not in the sponsor monster mentality. That will only give you a one time payment. Yes you have to recruit to help build your business, but retirement and living a life on your residual income is from your product sales.
If you are making only 2% or 5% to 8% commissions, you are being extremely underpaid. Look around you will find companies that are paying out commissions to start at 20% or even 30%…and there are even 5 Pillar companies that are paying their customers for their referrals. (Customers who do not have to join as distributors are being paid, now that is a 5 Pillar company)
Yeah it is true, but you have to research…again it is not about the product. It is about the distributor bringing revenue to the company so the company can pay you for your hard work. And reward you handsomely for that hard work. Most companies are thinking of only the bottom line, because of the simple fact that they have too much overhead. Too big of a company building, large amounts of staff on hand…the leer jet for traveling. I know of a CEO of a network marketing company who travels economy. No greed and ego with this guy.
- System for Success-The company must have duplicatable skills for success. People are not duplicatable – skills are. e.g. If you have to rely on your upline doing presentations, this is NOT duplicatable.
Commit to Success Today
Darlene and Dave Mills
Leadership with a vision
Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the world. ~ Joel A. Barker