10 things to watch for in multilevel marketing MLM
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10 things to watch for in multilevel isn't for everyone,but for some people, it canbe a dream come true. --------------------------------------------------------------------------- - ---- By Stephen W. Gibson Every month tens of thousands sign up as distributors for multilevel companies, hoping that new business success will come their way. For a small number, their dreams of financial independence are realized. A larger number may supplement their income with a few hundred dollars monthly. The largest percentage, however, join the ranks of the disappointed, who haven't had a change in their income at all, primarily because they didn't pay the price of success: they didn't recruit sufficient friends and neighbors to sell the products their companies distribute. Some of the disappointed actually end up worst than they started since they borrow on credit cards or from savings to buy product and training materials they hope will ensure success. If I were going to become a distributor, I would do all I could to increase the odds of my success by joining the best available, not just the newest or the one my neighbor joined. Here is my checklist of 10 things to look for in a . 1. A with some history. The newer the , the higher the risk. Yes, there is some value in a ground floor opportunity, but this potential reward needs to be carefully measured against the high risk of failure. Hundreds of companies come and go each year. 2. A that has gone through some rapid growth. Because of emphasis on sales, these companies can grow really fast. Unfortunately many can't handle the challenges which come with real growth, therefore join one which has proved it can survive supersonic growth. 3. A broad product line. Oneproduct companies seldom make it over the long haul. A broad-product line will increase the odds of success for you and the . A which sells services might be the exception if 80 percent or more of the population uses the service, such as telephone long distance. 4. A global presence, including Asia. Shipping product, paying commissions in foreign currency and understanding other cultures are all challenges rapid growth companies need to face. Joining a that has made it through these painful and costly lessons will enhance your own odds of success. You'll need global markets to really make a lot of money in . 5. Select a that makes the majority of its money off product sales, not training and enrollment fees. If profit margins are so low that the firm needs to charge up-front fees, the may crater when growth slows. 6. Find a that has been investigated by the Attorney General's Office. Regulatory scrutiny will come sooner or later for all companies. In my way of thinking, it is better to select one that has been investigated and passed than one which hasn't been looked at yet. 7. If the you are looking at doesn't use videos, up-to-day computer retrieval, Internet and satellite broadcasts and other high tech communications systems, you best find a that does. All these tools will help you recruit, sell, and do the other things that are now necessary for real success. 8. A payout of commissions to their distributors to the 5th or 6th level. This is necessary in order to give an adequate return to the distributor for his recruiting efforts. Any less, may not provide sufficient income for full-time employment. Unlimited width is also important when studying compensation plans. 9. I would be more attracted to a that has a highly visible founder still on board, who demonstrates vision and long-term thinking. I might trade the presence of a founder for a long and well-established presence and well-recognized name in the consumer products industry. 10. Choose a where the culture matches your interest, values and age. Some companies recruit primarily professionals, others blue-collar workers or people with a particular religious or political bent. culture is important for your long-term comfort. Even if a has all these characteristics, I still say, beware. multilevel isn't for everyone, but for some it can be truly a dream made true.
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