Fill out this short easy form and your answers will be on the next page.
| Your Name: | |
| Your Email: | |
Yor name is safe. We hate spam too.
The answers should be the basis of some serious Due Dilligence that will save you much heartache.
I hope your favourite company has fared well. Come back and test as often as you wish.
Question 1:
Is the Company public or private?
Your Answer:
Publicly traded
Publicly traded Companies have one mission - make money for their shareholders. By law, the Company officers are derelict in their duties if they don't make decisions to do that.
And then, there is you [name], as a distributor. You are a merely a tool to generate that profit.
If the shareholder's profits are threatened, the Company executives must look to claw back some money out of you, either directly, or by changing your contract - the Policies and Procedures. Legally and factually, you are working as an employee of the shareholders. It can be a good job [name], as long as times are good for the Company.
Privately owned Companies allow for agendas other than pure profit. The owners can allow for the executives, distributors and customers to be partners in a broader social mission.
It is easier, [name], to run your business in that sort of environment. It is up to you to discover if the owner's direction matches yours.
Privately owned Companies allow for agendas other than pure profit. The owners can allow for the executives, distributors and customers to be partners in a broader social mission.
Publicly traded Companies have one mission - make money for their shareholders. By law, the Company officers are derelict in their duties if they don't make decisions to do that.
And then, there is you [name], as a distributor. You are a merely a tool to generate that profit.
If the shareholder's profits are threatened, the Company executives must look to claw back some money out of you, either directly, or by changing your contract - the Policies and Procedures. Legally and factually, you are working as an employee of the shareholders. It can be a good job [name], as long as times are good for the Company.
It is easier, [name], to run your business in a private environment. It is up to you to discover if the owner's direction matches yours.
Better find out. Here is why [name].
Publicly traded Companies have one mission - make money for their shareholders. By law, the Company officers are derelict in their duties if they don't make decisions to do that.
And then, there is you [name], as a distributor. You are a merely a tool to generate that profit.
If the shareholder's profits are threatened, the Company executives must look to claw back some money out of you, either directly, or by changing your contract - the Policies and Procedures. Legally and factually, you are working as an employee of the shareholders. It can be a good job [name], as long as times are good for the Company.
Privately owned Companies allow for agendas other than pure profit. The owners can allow for the executives, distributors and customers to be partners in a broader social mission.
It is easier to run your business in that sort of environment. It is up to you to discover if the owner's direction matches yours.
Question 2:
In any Company, there are power holders - owners, shareholders, executives etc. Do the power holders have recent experience in building and maintaining an MLM downline?
Your Answer:
Yes
[name] that's great. This is crucial to you long term. Having MLM people in executive positions in your Company means that someone understands how the 'network marketing' part of the business works and what you have to go through to make it work. Without it, there will likely be blocks placed in your path and you are also likely to be treated as a business 'production unit'.
You also need to have people with solid business experience to handle product development, manufacturing, shipping, legals and expansion.
Not so good [name]. This is crucial to you long term. Having MLM people in executive positions in your Company means that someone understands how the 'network marketing' part of the business works and what you have to go through to make it work. Without it, there will likely be blocks placed in your path and you are also likely to be treated as a business 'production unit'.
You also need to have people with solid business experience to handle product development, manufacturing, shipping, legals and expansion.
Better find out. Here is why [name].
This is crucial to you long term. Having MLM people in executive positions in your Company means that someone understands how the 'network marketing' part of the business works and what you have to go through to make it work. Without it, there will likely be blocks placed in your path and you are also likely to be treated as a business 'production unit'.
You also need to have people with solid business experience to handle product development, manufacturing, shipping, legals and expansion.
Question 2:
How old is the Company?
Your Answer:
Pre-Start up
Uh oh. You are starting in the sub basement and you may not even get to the ground floor. Most MLM companies go broke in the first two years. You probably have better odds in Lotto. Are you prepared to gamble 2 - 3 years and lost opportunity on this?
Either way, the Company will have a nice list of people who have an interest in starting a home business. They should get a couple of hundred thousand dollars from that.
You may even get your own name back when you buy leads for your next MLM venture in 3 years.
Most MLM companies go broke in the first two years. You probably have better odds in Lotto. Are you prepared to gamble 2 years and lost opportunity on this?
You may even get your own name back when you buy leads for your next MLM venture in 2 years.
Either way, the Company will have a nice list of people who have an interest in starting a home business. They should get a couple of hundred thousand dollars from that.
Well. They are over the first hump. Most of the people who do well sign up about now. This is the real ground floor. Still, if you can weather the comp plan changes and other upsets, you can do very well. In a few years they should be opening in another country. Now you can really expand. Get ready for it now.
Being this age they should have modern systems for ordering and shipping in place and the comp plan will reflect this.
By 7 years, most Companies have ironed out the bugs and have settled down to get on with it. They have survived the '7 year itch' - just like being married.
If they are too much over 10 years, the systems will have been born in a pre computer age. The comp plan will be old too.
You may have to carry stock at home. You best opportunity may be in expanding to new countries.
Question 4:
How much does it cost to sign up?
Your Answer:
Under $70
$70 is reasonable. $20 for registration and website set up. $50 for basic paperwork. Now get some product and off you go.
Question 4:
How much does it cost to sign up?
Your Answer:
$70 - 250
That had better include some product for you to use. If not, check that some of that is not a finders fee in which case the Company pays you to recruit people and not to move product. The Government doesn't like that and you won't either when you find you can't sell and make it happen.
Question 4:
How much does it cost to sign up?
Your Answer:
$250 plus
$250 plus is a lot. If it is product, that's a hell of a lot of product. Are you buying yourself into a manager level? Not good. It will mostly end in tears.
The exception here is when the product included is a massive amount of education. Ask yourself if you would pay this much if there was no business attached. If it is no, pass on it.
Question 5:
How much product movement in a month does it take to qualify for a bonus?
Your Answer:
Under $150
This shows that the Company is serious about retailing and paying the part timer. If someone can't get a bonus at his level...
Question 5:
How much product movement in a month does it take to qualify for a bonus?
Your Answer:
$150 - $350
This shows that the Company is serious about retailing and paying the part timer. You can do well here as your deeper levels are kept rewarded while they learn the business.
Question 5:
How much product movement in a month does it take to qualify for a bonus?
Your Answer:
$350 plus
We are getting into the realms of a super sales retailer. Most won't be able to do this consistently and you will find you get a lot of drop outs with people not being rewarded.
Question 6:
Do you have to carry stock?
Your Answer:
Yes
Having to carry stock is sign of an older style Company.If you have just a few items, that is fine. If you are stocked up like a store, something is wrong. They may be 'stuffing the pipeline'. You will get a good bonus the first month, then... If they are legit and with the times, you should only have about $200 at home and the rest gets shipped from the Company to your customers direct.
Question 6:
Do you have to carry stock?
Your Answer:
No. The Company will drop ship
Drop shipping is a great way to deliver product to your customers. You take the order and the retail price - on line or off line - and place a wholesale order with the Company, who then deliver.
Just make sure you give a retail receipt and the customer's name and address. They are you customers. Not the Company's.
Question 7:
The Company has a money back guarantee?
Your Answer:
Yes
Any Company that does not have a 100% money back guarantee is not a real business. The customer confidence that it generates is well worth it and most will not take it up even if they are not happy.
Question 7:
The Company has a money back guarantee?
Your Answer:
No
Any Company that does not have a 100% money back guarantee is not a real business. The customer confidence that it generates is well worth it and most will not take it up even if they are not happy.
Question 8:
The Company is a member of DSA and BBB?
Your Answer:
Yes
Membership in DSA and BBB in your country is essential for customer confidence in your Company.
Question 8:
The Company is a member of DSA and BBB?
Your Answer:
No
Membership in DSA and BBB in your country is essential for customer confidence in your Company. If your Company is not a member, find out why and move on.
Question 9:
Ignoring the Hype - Are the products...
Your Answer:
Unique and patentable
Unique, patentable products are not really necessary. Companies that have them will tell you that they are. But how real is patentable when most natural health products are not patentable no matter how good they are but someone has recently patented human skin?
Unique is fine for marketing. Patentable is for egg heads.
Question 9:
Ignoring the Hype - Are the products...
Your Answer:
Remarkable
Remarkable products are great for attracting attention, so they are great for marketing. Having one or two remarkable signature products works well.
Question 9:
Ignoring the Hype - Are the products...
Your Answer:
Me too
Me-too products can work well if you have enough of they and they have broad appeal. Some MLM Companies are like supermarkets - something for everyone. It would be better to have one strong signature product
Question 10:
How many of the products are available on eBay?
Your Answer:
0 - 100
Around 100 of your Company's products on eBay is fine especially if they are at retail prices. If they are at Dollar Store prices - not so good. Are these old or disgruntled distributors or someone getting rid of 'start up stock' they had to buy when they signed up? Talk to some of them and find out.
Question 10:
How many of the products are available on eBay?
Your Answer:
100 - 6000
If there are 100's or thousands of your products available on eBay, have a look. Are they at retail prices - good. Or wholesale prices - not good. Are these old or disgruntled distributors or someone getting rid of 'start up stock' they had to buy when they signed up? Talk to some of them and find out.
You will find that the Policies and Procedures and the comp plan will be the cause of this behaviour. Until you understand why - do not sign up.
Question 11:
All products have a useful marketing life - will this one stay in demand, at this price for...
Your Answer:
1 - 5 years
A 'short wave' product is good for a money making opportunity. Not a business opportunity. Plan accordingly.
Question 11:
All products have a useful marketing life - will this one stay in demand, at this price for...
Your Answer:
5 years plus
A 'long wave; product is best for a business opportunity. A 'short wave' product is for a money making opportunity. You may also have short wave products in a business - like Christmas specials. Plan accordingly.
Question 12:
Does the Company Policies and Procedures have the following words - On going or Regardless?
Your Answer:
Yes
You've read the P&Ps? You must be a 'Green' personality. Understanding Ongoing and Regardless in context is essential if you want to have a residual income. This is the way that the Company can take that residual income from you - for good.
Also check if the Company has the option to not renew your membership each year. If they can decline for no reason, they get to keep your $10,000 a month - not you - and even the High Court will not give it back to you.
Question 12:
Does the Company Policies and Procedures have the following words - 'On going' or 'Regardless'?
Your Answer:
No
You've read the P&Ps? You must be a 'Green' personality. Understanding 'Ongoing' and 'Regardless' in context is essential if you want to have a residual income. This is the way that the Company can take that residual income from you - for good.
Also check if the Company has the option to not renew your membership each year. If they can decline for no reason, they get to keep your $10,000 a month - not you - and even the High Court will not give it back to you.
Question 12:
Does the Company Policies and Procedures have the following words - 'On going' or 'Regardless'?
Your Answer:
Don't Know
You've not read the P&Ps? You must. Understanding 'Ongoing' and 'Regardless' in context is essential if you want to have a residual income. This is the way that the Company can take that residual income from you - for good.
Also check if the Company has the option to not renew your membership each year. If they can decline for no reason, they get to keep your $10,000 a month - not you - and even the High Court will not give it back to you.
Question 13:
What is the retail mark up?
Your Answer:
1 - 20%
Up to 20% is no encouragement to retail. Why would you bother?
However, your bonus cheque is based on product movement. if no-one is retailing, you lose. Find a Company that pays 25 - 40% and encourages retailing.
Question 13:
What is the retail mark up?
Your Answer:
25 - 40%
25 - 40% is worth retailing for. Everyone can make a hundred dollars and be happy. Under 25% and it is not worth it. Over 40% and people will join to get it wholesale. Either way, there is no retail happening.
Your bonus cheque is based on product movement. if no-one is retailing, you lose.
Question 13:
What is the retail mark up?
Your Answer:
45% plus
40% plus for retail. Too expensive. 'I'll just join and get it wholesale'. So no-one retails. Your front line newbies make no money or bonuses and opt out.
Your bonus cheque is based on product movement. if no-one is retailing, you lose. Find a Company that pays 25 - 40% and encourages retailing.
Question 14:
How many retail customers are you encouraged to have?
Your Answer:
None
With no retail, you only have a recruiting programme - Run. No retail means no business.
The only exception is a high priced GPN - get paid now product - which is more direct sale than MLM.
Question 14:
How many retail customers are you encouraged to have?
Your Answer:
10
10 is do-able. If everyone in your group had 10, the newbies would make $100 a month. The business builders would cover their costs and you would make a fortune.
Question 14:
How many retail customers are you encouraged to have?
Your Answer:
20 Plus
Too hard. Just go and open a store. Find something that requires about 10.
Question 15:
How many distributors do you need in your group to earn $10,000 a month?
Your Answer:
Under 1000
Probably the first question you should be asking. Under 1000 is fantastic and so do-able. Use this Calculator.
Question 15:
How many distributors do you need in your group to earn $10,000 a month?
Your Answer:
Under 2000
Probably the first question you should be asking. Under 2000 is realistic and will be a good long term business. Use this Calculator.
Question 15:
How many distributors do you need in your group to earn $10,000 a month?
Your Answer:
Around 5000
Probably the first question you should be asking. Over 5000 is a joke. I bet the newbies and retailers don't get much. Find something well under 2000. Use this Calculator.
Get access to more tips and useful quizzes through the MLMtips
Fill out this short easy form and I will unlock the door to
FREE 7 Day Video SUCCESS Boot Camp
PLUS I will send you your 1st Power MLMtip
What to say when a friend asks, 'What are you doing now?'
Your next tip will come near the end of the 10 days.