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October 24, 2003
Oldie But a Goodie
By QBlog in
1. Avoid any plan that includes commissions for recruiting additional distributors. It may be an illegal pyramid.
2. Beware of plans that ask new distributors to purchase expensive inventory. These plans can collapse quickly -- and also may be thinly-disguised pyramids.
3. Be cautious of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself.
4. Beware of plans that claim to sell miracle products or promise enormous earnings. Just because a promoter of a plan makes a claim doesn't mean it's true! Ask the promoter of the plan to substantiate claims with hard evidence.
5. Beware of shills -- "decoy" references paid by a plan's promoter to describe their fictional success in earning money through the plan.
6. Don't pay or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
7. Do your homework! Check with your local Better Business Bureau and state Attorney General about any plan you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.
Comments
Ty,
Thanks for muddying the waters in hopes of recruiting folks to Passport. In all fairness I would add:
Avoid individuals that compare their MLM to other MLMs.
Protect yourself from all possible MLM prospectors by becoming familiar with "the curiosity approach" and their common "tells" like suggesting that MLM can work when done properly.
Avoid MLMs that are headed by former Amway Diamonds.
Ask yourself why the person in front of you actually cares about your future, financial position and faith.
Ask yourself what motivates the person in front of you to instill you with rage and loathing for you have accomplished in your life thus far.
Learn about the evils of MLM, pyramid schemes, Ponzi schemes, Network Marketing, etc. It could save you from losing tens of thousand of dollars, thousands of hours of your free time, your marriage, your house, your kids, your relatives, your friends, your job, your reputation, your faith, your sanity, your common sense, etc.
Dave's Buddy,
"Avoid individuals that compare their MLM to other MLMs."
Did you procure this bit of "business logic" from your knick knack sales or was it from the t-shirt business?
Also when you decided to get into the "knick knack business", did you compare it to a McDonalds Franchise, your job, nothing, or a business in the same industrry?
Ty,
Did my additional MLM warnings hit too close to home? It has been my observation that Quixtar cultivates prospect curiousity through JOB bashing. Passport, on the other hand, cultivates this same curiousity by comparing itself with Quixtar and other MLMs.
In "real business" this is called a differentiation marketing strategy. It is an effective strategy only if the differences are clear to the customers. In Passport's case, the only difference is in the manner in which Bo and his select upline fleece the downline Associates. If you will recall my subjective analysis of the Passport compensation system, the bottom three levels will ALWAYS support those above regardless of the pyramid structure and numbers. This is very similar to Quixtar.
By the way, my knick knack business and t-shirt business performed admirably if you are suggesting otherwise. Revenues greatly exceeded costs which ensured a profit for me in the case of the t-shirt business and for a non-profit organization in the case of the knick knack business. I am certain that this is more than you can claim for your Ranier Beach or Capital Hill Passport legs.
Truth is not determined by majority vote
Very nice site. Will sure visit again.
I would add:
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! If they won't let you talk to the rank and file...RUN!
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.
Posted by: Ty | October 24, 2003 10:57 PM