[Globalverge]

G'day folks,

I'm new to your forum, however I have visited here every now and then for the past couple of years as a guest.

As I haven't posted or threaded before I thought I would start by getting some opinions on what makes a great MLM company. Yes, judging by my user name I do have an interest in one but that's not what I am here to talk about - well not yet anyway!.

So please feel free to express your thoughts and opinions on what you think makes a great MLM company. I look forward to reading them.

Darren.

[Offshore-Wealth.com]

Good question,

In my experience, it is not just one thing, but several you have to look for. Obviously, it all starts with the owners and management, for no matter how good the product or service is, or how much value it offers, they management can still screw it up if not top notch.

OK, with that said, I look for FREE to join businesses, after all, coming from the traditional business world, it just does not compute to have to pay to play, as in a fee required for web site, back office, empty registration fee or overpriced mandatory purchases. Bottom line, I don't think it is right to ask people to purchase anything just to sell be able to earn profits for company and earn a commission. Where does this make sense?

Value, something most MLM deals never offer. Quality is a given, and even if it costs more, if higher priced than other companies, it better be easy to verify. We've all been pitched on nutritional or weight loss deals, yet they never work for the masses, and this is why so many people quit MLM.

I look for good short term, mid term and long term income opportunities, not the get rich quick deals where you have to buy into higher commission levels with major upfront purchase. Most never earn more than they burn trying to sell whatever, so again, value must be absolute, and if a product sells itself, this is even better for the masses who cannot or do not like to sell.

Like any business decision, you have to do your own due diligence, don't take the word of your sponsor, even if you know them personally, do your own decision making. Attrition is high in the industry because people do not research the business enough to determine what is true and what isn't when it comes to potential income levels. What grows to fast never lasts, so make sure their is a strong market for your product or service along with quality and value. I like to promote exclusive technologies whenever possible, but these are rare.

Good luck to all,

[Globalverge]

Yeah some good points OSW. I have always understood the concept behind MLM, network marketing, what ever you like to call it, ever since being introduced to that company starting with A, ending with way, by my dentist after coming out of sergury for my wisdom teeth. However the problem for me was the products. The concept, fully agreed with it, the products just didn't do it for me. I have always maintained that if they or someone else came along with a product/s that I already use and would save me money that I would be all over it. If I could save a little on my monthly expenses with the option of making some $'s at the end of the month, why wouldn't I be interested.

And I'm guessing I wouldn't be Robinson Caruso there either.

The concept and principles behind MLM's will always have people at the top earning more than the bottom, that's life with everything and in my opinion will always be life, but those at the bottom have to be saving as well from what ever products they are using, sounds to perfect I know, but this is what I would look for. So if I never introduced anyone and only used the products/services, they would need to be costing me less than what I would normally spend, even if I was paying a weekly/monthly fee to participate.

Also the common tactic of promoting huge monthly figures you could earn raise alarm bells for me and don't attract me in any way. So yes OSW, I agree with you strongly that everyone must undertake there own due diligence to there own satisfaction before getting involved with any company. After all does anyone really believe that after 2,3,4 or even 12 months you will be earning $100,000 a month from the next big thing?. It's great to dream, but I'd rather remain grounded and focus on earning an extra $250 a month and go from there. After all an extra $250 a month would effectively get rid of the last 4 interest rate rises on the average $300,000 mortgage. (In Australia)

So the structure/compensation plan must also give good short term, mid term and long term income opportunities as you stated also OSW so it allows for Mr Average like me to achieve that $250+ a month extra.

IMO

Darren

[Offshore-Wealth.com]

Agreed,

So the structure/compensation plan must also give good short term, mid term and long term income opportunities as you stated also OSW so it allows for Mr Average like me to achieve that $250+ a month extra.

I agree with above, if you can not help the majority earn even $250. per month over and above their costs to run their business, then attrition, the biggest killer in MLM of all will destroy your hopes and dreams. This is why so many fail, they don't look at the industry with small numbers like $250., they are all hyped on the BIG numbers some do earn in industry. Most could reach the $250. point in time, but few will even break even in three months, and this should be everyone's first goal, break even, not make money. If you can cover your autoship requirement, then most would not quit if the product was reasonable value and quality.

[Globalverge]

Very true OSW,

and that's where I became frustrated, like most, who get involved in MLM's and the like. The hype is always, you could earn 10's of thousand's every month, sack your boss, work from home only 30mins aday, all those attractive tag lines to get people interested. Which don't me wrong are goals we all should set, but after doing all that you are told to do and after 6 months you're no further ahead, that's when frustration takes over.

So that's why I've waited and done my DD and believe that what I've come across is the right opportunity for me so far.

Another thing I believe is over looked are the tax benefits associated with such ventures. Most people these days already have these personal costs associated with computers, internet, mobile phones, home office, electricity, stationary, car, dining out etc... and many people I have spoken too have found that the key to building income that you can keep is through a part-time business such as MLM. So once you have established (according to your countries own guidelines) that you have a business, you can then start using your hidden business deductions to convert your current personal expenses, such as the ones stated above, into business deductions. After all governments want us to take advantage of these things, that's why they are there, it's just that not evrybody thinks about such things when doing there DD.

I always factor this in when considering my risk to reward. It's not that complicated.

IMO
Darren

[alexaherself]

I think the important things are:-

1. It must be well-established (because you can't tell whether it has products in genuine retail demand if you can't see sales figures, and it's no good if distributors are the only people buying them)

2. It mustn't have "autoship" because people are wising up to this and nobody wants a regular monthly outgoing before they can try to make a regular monthly income (and companies that rely on "autoship" are not companies making genuine retail sales to genuine retail customers, of course)

And most important of all:-

3. It must have a system that duplicates, so that people can quickly and easily be shown what to do in the secure knowledge that it's something that works, a formula to copy, in other words

I think not so many MLM companies qualify on these counts, which is why the proportion of new MLM companies that actually last 2 years is absolutely tiny.

[Globalverge]

Thx Alexa,

you have raised some very good points.

I to believe the products MUST be in genuine retail demand, however I believe they also must be goods that we already consume. That way we already associate with it. At the end of the day people have to see value in a product otherwise no matter how good a system is, the majority aren't going to touch it.

People are also the most important element as well which is often overlooked. The focus seems to always be on the size of the $ sign which just leads to frustration and disappointment at the end of the day. As I stated in an earlier post I like to focus on what an extra $100, $200 dollars means to me every month. Now if that income happens to grow, and for example, equal my monthly mortgage payment then to me, that is effectively the same as paying off my mortgage. How much better off would we be without a mortgage payment, or half a mortgage payment?

I have a differing opinion on autoship. If the products that you are receiving for the price of the autoship are of value then I don't believe many people would have a problem, once again it must be of value. Receiving 2 dozen bottles of jungle juice for $300 a month which noone wants isn't to me of any value. Unless I already consumed 2 dozen bottles of that product.

The new rules associated with MLM companies will help weed out the dodgy companies as well hopefully to give the industry a much better name. So the companies that are legit and well structured will strive because after all whether some people like it or not networking is the future, you just need to surround yourself with the right people who will show and help you duplicate a formula or system so as to get you that extra 1 - 2 hundred dollar a month income. (to start with anyway)

IMO

Darren

[alexaherself]

Originally Posted by Globalverge

If the products that you are receiving for the price of the autoship are of value then I don't believe many people would have a problem, once again it must be of value.

Yes, I take your point about this, Darren.

At the same time, I cant help wondering:-

(a) about this issue over whether distributors are the only people (or almost the only people) buying the products and why some MLM companies make their distributors certify, in order to get paid, that they've sold 70% of their previous month's autoship supply to genuine retail customers in order to appear to satisfy some sort of US regulation that at least 70% of a company's sales should be genuine retail sales made to people not financially involved with the company?

(b) whether most MLM companies that rely on autoship would be able to survive at all without their monthly autoship sales volumes which I understand can often be as high as 90% of their total sales volumes, which makes you wonder to what extent their products really are perceived as offering "value" if the reality is that almost all the sales are financially incentivised?

(c) what proportion of "prospects" who need to earn additional monthly income (the need for which is after all traditionally one of the key promotional issues targeted by their distributors with their recruitment efforts) are going to be put off by having to make a commitment to lay out commonly $50 - $120 per month before they're earning anything?

[Offshore-Wealth.com]

Good points,

I agree, the rules are getting tighter all the time on retail sales in MLM, so I have stayed away from anything which does not have a value in excess of cost, this is the only time people will not object to autoship.

If you have a product of true value, then I agree, autoship may not be an issue, but I still feel people should not be obligated to autoship for the first three months, and not take any of their commissions away. People need time to jump start their sales, and if there is value offered, everyone has the option to make their own purchase every month, or every other month, it all depends on the product.

Obviously, if you had a product which costs you $19.95 a month, as example, and you are paying some other company for it, and now you offer the same or better service or product for $19.95, of course autoship makes sense. But in you are paying $19.95 and your product is $24.95, then it better have more value than the current product or service has you are using.

It all comes down to value, I am not going to pay more for the same service or product, nor would I expect anyone else to pay more, and as to autoship, I have no problem at same price of replacing service, but really, how many MLM's fall into this category?

[Trivani]

I'm running a company similar but not Network Marketing, It's bit different and in network marketing you should know your product and you have to make people understand the same. if the product is worth buying or selling and if they find the chain process interesting, they would definitely go for the option. First try with three people and see how well you can present the product.