I would like to thank QBlog for this excellent link from the FTC regarding Multi Level Marketing Plans.
Here are some additional things to consider:
Make sure you understand how you are going to make money. Many times sorting through the hype and the PV's, BV's and CV's is daunting. You go away from an "opportunity meeting" with little to no understanding of what you just saw, aside from what type of car the speaker drove.
A simple test...can you look at the compensation plan and figure out what percentage of revenue is paid back to the associate?
Put yourself in your customers shoes. Would you buy the product for the retail price shown? Remember you must have customers in order to have a legal, let alone profitable business.
Beware of start up costs that have nothing to do with the actual start up with the MLM. Many times systems will include "stuff" with start up. In other words it may only cost $50 to get started but they are telling you that everyone buys the "Quick Start" kit for $250.
Find out about the training costs. Ask the rank and file! If they won't let you talk to the rank and file...RUN!
Find out how many nights per week people leave home to build the MLM. Again, ask the rank and file!
Research other companies. Compare the compensation plans, products lines, start up costs, and training offered. Search out the good and the bad. Seperate your self from the hype and make a logical decision.
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Some more things to consider:
After you join an MLM scheme, consider what's more important to succeed in the business, according to your sponsor or upline(s): (1) Sales or (2) more people (recruitment) or (3) meetings/books/tapes (BSM)?
If the answer is only (1) or a combination of (1) & (2) then probably everything is fine. But if the answer is Only (2) or (3) or a combination of (2) & (3) then stop your involvement immediately. Nobody but the very top level of your line of sponsorship will benefit from this. Contrary to what you think, you will be only acting as an unwitting customer to your sponsor (or uplines) for the meeting tickets, books and other BSM.
Bottomline: For any product-based business to succeed and for you to make profits, it needs *sales of products* AND NOT meetings. Books/tapes are fine for getting started…but for more profit you need more product sales, not BSM sales. If BSM is utterly important then TAKE IT that chances of success are *very* slim indeed and the profits are majorly from the sales of BSM, not products.
Hi….just happened upon your mlmblog and i find it a little disturbing. if not everything is for everyone, then why do you bash mlm's? while i think it's great that you have a home business of your own, and support your family, i find it sad that you put time and effort into such negativity. with all due respect, stop hating and just do your thing. as the cliche says "it's a free county" and lots of people are doing well because of Quixtar…it has helped many people -such as my own family – make extra money and live more comfortably. that's not propaganda, it's a humble admission of my own gratitude. isn't it funny that most ibo's are the positive ones while those who refuse to change for the positive usually end up on the outside? i sincerely hope all the best for you and your family, success with your endeavors, and blessings. i also hope that you can perhaps do something healthy for yourself, and LET GO. forgive whatever qualms you seem to have and move on.
Rochelle I think you are very right, and I know because of your thoughts you're blessed and keep being blessed!
The funny phrase that "the ppl at the top makes all the money", specially somebody looking at qxtr, even w/ the tools, either didnt understand the plan or have a low belief in themselves. I GOT IN TO GET TO THE TOP AND BE AT THE TOP. nobody started at the top, well besides the founders, even the biggest pins started somewhere, and its available for anybody to grow their business to get to the "top" and make money from the tools…
OK, let me get something straight. This is the MLM Blog. I write about MLM. THe first MLM I was involved with was Amway/Quixtar, so I write about it.
No one has ever pointed out a post that is not true on this blog. If you consider the truth "bashing", I'm sorry.