What To Look For In An MLM

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What To Look For In An MLM

Postby swagen on Wed Aug 22, 2007 11:03 am


I am neither endorsing or knocking MLMs. No program is good or bad just because of the type of program that it is. MLMs have gotten a bad rap because of quite a few questionable programs that have come and gone over the past few years. However, a legit MLM with a viable product can actually be a great money maker. Too bad there aren't very many of them around.

So what DO you look for in an MLM?

1. A real product. Unfortunately, many MLMs are nothing but pyramid schemes. They have no product. All they are, are programs designed to bring in people and nothing else. These programs eventually get shut down in time. There are some very strict regulations as designated by the feds. Break the rules and you can pretty much bet that your program will be shut doen quickly.

2. A proven track record. Lots of people feel that in order to make money with an MLM, they have to get in early. This is not true. There are new people coming into the marketplace all the time. Saturation is a myth. So you want to keep away from new programs because you simply don't know if they're going to fly or not. You're taking a big risk with something new. If you're into risk taking, fine, but you won't get any more or fewer signups than with an established company.

3. Support. So many of these companies simply sign you up and leave you hung out to dry. There is no support and you're basically on your own. So before you sign up with any MLM, find out what kind of support you're going to get.

4. A fair pay plan. So many pay plans are just pure crap. They favor the big guys with the huge lists and penalize the little guy. You want a pay plan that is going to be fair for everybody. So you want to stay away from pay plans that reward you for massive signups. You should make the same amount of money for each signup regardless of how many you get.

Item 4 takes a lot of research and there are a ton of different pay plans from 1 ups and 2 ups to binary plans to you name it. I've made a study of all of them and some are just pure crap. I won't go into all of them here because this thread would be 10 years into next Tuesday. So just make sure you get the pay plan stats before you sign up.

If you follow the above 4 tips, you'll have a better than even chance of hooking up with a decent MLM company.

Provided you can actually find a legit one.
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Re: What To Look For In An MLM

Postby Arcadian on Wed Aug 22, 2007 6:36 pm

Re 4. I think it's helpful to find out exactly what you have to do to earn $100. Do the maths. Ask if this isn't clear from the compensation plan. Don't include any bonuses from recruitment (no business should ever be based on recruitment alone) and don't include potential spillover as that can't be guaranteed. It's actually quite tricky to work that out with some programs.
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Re: What To Look For In An MLM

Postby jaggiegill on Thu Aug 23, 2007 12:05 am

As a previous MLM junkie, I can say by experience that all those steps that you have outlined are equally important, finding a good MLM is difficult , but once you have found one that meets these qualifications, you can make a lot of money with that opportunity. MLM's do have a bad name and are scarred because of people talking about how they are unfair and illegal and what not... it's too bad that these people haven't experienced the power of a working downline!

Thanks for the great read Steven even though I'm not venturing deeper into the MLM world. By the way I was reading some of your articles on Ezinearticles because I am currently working on a project that has to do with product creation (kind of like a $7 report) and I'm really learning some things that I never knew before about marketing online and affiliate marketing, very interesting!

Is it ok with you if I give you a shout a few times just to get some things cleared up? I know your an expert at this stuff so any advise from you is golden. :)

Now back to reading some of your articles...
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Re: What To Look For In An MLM

Postby swagen on Fri Aug 24, 2007 1:39 pm

Gill, no problem. You can contact me any time with any questions you have.

I have no doubt that some of the stuff you'll learn will surprise you. It surprised me too when I discovered some of this stuff.

IM isn't what a lot of people think it is, good or bad.
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Re: What To Look For In An MLM

Postby Loren on Tue Nov 06, 2007 12:56 am

Also, work out the numbers on YOUR COSTS -

Many if not most MLM business builders are in the business of
getting new recruits on "autoship", so if you are one of these
newcomers, be very clear with yourself whether you want to
be paying $50-$200 per month for the product.

If you don't use it and don't sell it, it will pile up in your closet.

MLM is Built on autoship orders in general. Thats the game and
thats the price you pay to be involved. Don't recruit anybody
who can't afford to lose money with autoship orders for awhile...
they will resent you for leading them into a losing proposition.

Overhead is the great killer of small business dreams, and autoship
orders of health tonics, soap, vitamins and other products sold
through MLM should be figured in as a COST of doing the business.

Some programs don't have autoship requirements but many of these
require a larger outlay of capital up front to get started.
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