When Picking a Company
"The Top Hype" or "How to Tell a Loser!"
This is not one of those "Bash NetWork or Multi-Affiliate sites. This is to protect the "Newbies" and some of the thousands of people that get burned each year! We have a good industry and have to protect it! This is a cynical look at the B.S. that gets thrown around the industry. Use it for armor plating and charge on to make your first million $$. Rod Cook
1. This Company is well funded!
This is the number one lie for the y2k. New companies may be legit but with all the competition today it takes a serious amount of money to get started. A million dollars helps. More is better! The problem is the Pro's have a hard time telling. I always like to start with a Dun and Bradstreet on the supposed parent company. Then see a letter of commitment from the financier with the dollar amount. In one recent case a multi-millionaire backed a company all right. The problem was it was $25,000 at a time. The dummies that started the company told him that it would produce cash flow in the black at month three! When it didn't, Mr. Moneybags pulled the plug! The qualities of printing and distributor kits are a good clue. Is their computer system from one of the big five? Who is their MLM Attorney? One company was bragging to me about how much money they had. I visited their offices, looked at the antique computers, holes in the rugs, and trash furniture - then asked for the truth! If they tell the truth about limited funds, that's ok!
2. This compensation plan is legal and pays out a lot!
There has been a rush to pay out large front-end bonuses to attract distributors who recruit for money. Lately the trend is toward using training and motivation (T&M) products: there are large margins. This is ok if the product is at fair market value. The question is that the regulators ask, "would people pay this amount of money for these tapes and books if there was not financial gain involved?." If that answer comes up "no", watch out! In history, "Leadership Dynamics" and "Dare to Be Great" almost made them taboo. Last fall the FTC hit World Class Network for their "travel training." The next thing is, "are commissions paid on the sale of a reasonably priced product?" If so, good! The big test is always, "if all recruiting were to stop tomorrow, with no new people coming into the company, would the company still be in business a year from now?" In short, if there were no income opportunity, would people still buy this company's products?. Most good MLM companies would survive well! Try that simple test! Don't join a target!
3. This product is Hot and legal - our claims are legal!
Skin patches for weight loss were the scam rage of 1997. Both the Federal Trade Commission and the Food and Drug Administration get in on the claim busting side. Weight loss always attracts the wrong type of attention. Tests not done in by FDA protocol in approved facilities are always a target. The big laughs are tests done outside the United States that companies "let their distributors find." They sound good but don't hold a drop of credibility with the Government. Third party material distanced from the company sounds real to a neophyte who is wowed by the tape or tabloid newspaper. The trouble is some of them are so far fetched that it attracts the wrong attention! The question to ask a company is, "do you mind if I send this stuff to my local FDA office for review?" See what response that elicits!
4. We will build your downline for you - just send money!
This is worth a whole book. In short you can bet your bottom dollar that the folks running this little scheme have put themselves their mom, dad, sisters and brother on the first four levels. If you wander in at level 5 of the program (all 3,125 of you) these recruiting geniuses are going to have to sign up 15,625 people to fill all your first level. To help you folks get your 2nd (their 7th) level they have to have to nail down 78,125 more suckers! They are going to be panting a little when they get to your 3rd level (their 8th) when they have to pull in 390,000 apps! Just hope they slam in the 48 million to fill up your 6th level. Downline building never works except for the originators! Some of the originators are not crooks, they just can't run a calculator! You can join teams of recruiter - mailers and do well. Why? Because you are working specific levels in a comp plan and have control of what you are doing! You can manage your expenditures of time, effort, and money and measure the results.
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