From past and present experiences in the last 7 years being involved with several MLM and direct marketing companies, I’ve discovered how to do your own due diligence looking at MLM and other business opportunities. The following step-by-step plan is what Scott does and should be something you do when looking at a MLM company.
The first thing is to read a MLM company’s “Policies And Procedures” (aka. Distributor Agreement) This is YOUR contract on how to do the business. These are the requirements the company has put on you to perform. If you are found violating the P&Ps, you’ll be terminated. Some phrases used are warning signs…
“company reserves the right to terminate distributor with or without cause as they deem necessary…”
Look for words like “ongoing, regular, continued” which (if you look in the dictionary for their meaning) mean – you can NEVER retire!
So read your company’s Policies And Procedures. If you don’t know where these are, look in your back office or on the website. If you can’t find them in these places, THAT’s another red flag.
The second thing is to Google the company and corporate staff.
Have they ever built an organization, a downline? If they’ve never built a downline, what have they done in the past? Also, if they’ve NEVER been in MLM, built a downline… would you really want to join the company???
Google the company. Google the product. Just remember not all reviews, comments are bad. That’s just marketing to different niches. We’ll discuss that later.
So the second step is to “Google” them
Become a “critical thinker in business“; a private investigator.
The third step, and final for right now, is to ask yourself this ONE question:
How many CUSTOMERS (not downline members) do I need to earn $500 a month in residual monthly income? $1,000 a month? $2,000 to $10,000 a month?
When you figure out that number, ask yourself if it’s realistic for you and the people you coach to reach it. If it’s not, you’ll know what to do.
While finding business partners is crucial to your business, without actual CUSTOMERS (who are NOT independent associates or whatever) buying from you, your business will never grow.
Imagine you’re retired and on the beach with your spouse and kids. If ALL you’ve been doing is recruiting and sponsoring, and you’ve NEVER RETAILED your product/service… do you really expect to be retired?
You’d have to “come out of retirement” because all you’ll have is a bunch of distributors recruiting, recruiting, recruiting when they SHOULD be retailing, retailing, retailing!
Scott Lucas
270-872-6990
scott@scottlucasstrategies.com