Wednesday, January 03, 2007

The Perils and Pitfalls of Multi-level Marketing....

Daddy’s Upline’s been arrested!

© 2007 Karen Hurd Enterprises, Inc. All Rights Reserved.

My Dad was always looking to make money from home. Back in the 1960’s there weren’t a lot of options. He started all kinds of businesses, from bars to installing sprinkler systems, to selling tools.

But my Dad knew cars. He came across this product which would keep your car from losing traction and spinning out of control on slippery roads. This thing worked and you could make a lot of money. They cost about $500 each which was A LOT of money in 1969. So he bought 10 and stored them in the basement under a sheet. That way my mom wouldn’t find out about his new adventure.

One day the phone rang, and it was my mom calling from work.
“Karen, get the newspaper – NOW! Don’t let your Daddy see it!” (She found out anyway).
“Because his business partner’s been arrested. Your father’s in one of those
pyramid schemes!” (Like Dad wouldn’t find that out at the next meeting?)

And that was my introduction to network marketing.

Needless to say when I began my network marketing career, I was more than a bit afraid of getting ripped off. Afterall, I knew that pyramid schemes were real. I literally blasted my first sponsor with over 70 questions. Poor woman! She didn’t know what she was getting into with me. Everyone else just believed what she told them. I wish I’d known about the 7 Critical Elements then! It would have made choosing a company so much easier.

We are skeptical of what we don’t know. Face it. If everyone else who is rich got that way by working 80 hours a week, and climbing the corporate ladder, or discovering the wonder widget, how in the world can you make 6 or 7 figures in a part-time business from home? Doesn't make sense, does it?

Multi-level marketing is a perilous business. On the surface, everybody says the same thing. And everyone claims to be legit. Even the scammers. And the “MLM truth” sites hate everything, so they’re not a big help. What’s a mere mortal to do?

Enter the 7 Critical Elements of a Primary Business. There are elements that every
solid network marketing opportunity should have in order to give you the best potential for long term income. If your company doesn't have them,keep looking.

Here they are in a nutshell:

1. Unique Products: You do not want to be in the position of competing solely on price. Products must serve multiple market categories, be unique enough to get patents, and the products have to serve the largest possible market segment. Are they consumable? Products with one-time-sales makes residual income difficult.

2. Company Stability: The ability to give you long-term business and financial security, based on their company and business history. It’s best if the company has been around longer than 5 years, and shown financial stability and a track record of payouts.

3. Marketing System: System to market primary must be compatible with the internet marketing techniques, and current consumer trends. They must be simple and duplicatable. Network marketing is a business system for non-business people.

4. Company Management: Must be led by successful leaders in business with a vision for the future growth – not management mode. Does the company have the talent at management level to effectively keep a good product pipeline and service its distributor base?

5. Global Reach: Must be groundfloor in their global expansion. Management must have prior experience in global expansion. Is the compensation plan the same around the world?

6. Compensation & Incentives: Maximize your income based on your efforts. Must payout at least 50% of sales dollar, must offer unlimited depth within compensation plan. Must offer Fast Start Bonuses, must offer other incentives and recognition. You must be able to achieve $10,000/month true residual income with less than 500 people in the organization. Does the company you are evaluating document its payout with U.S. IRS?

7. Pay-It Forward: Does the company Pay-It Forward to the masses? They must give back globally what they are taking out in a significant way. Are their products and policies ethical? Socially responsible? Is the company's vision is to make an impact on the world in a positive way. Do they encourage significant charity corporately and amongst their distributor base?

If your company can meet all 7 of these critical elements, you’re on your way to tremendous success.

For more in-depth info on these 7 criteria, you can visit my website:
Sign up for the free e-course on Mastering Your Primary.

About the Author:

Karen Hurd has been a full-time network marketer
since 1988. She is a writer, teacher and wellness educator.
She lives in Virginia Beach with her husband and 5 children.
She built her business during her children's naptime, and now
she makes money in her sleep.

Karen can be reached at:

Her website:

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