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How to Beat the Odds in Network Marketing!

Category: Networking(MLM) Date: 2001-04-22
From Jewelway to Equinox, network marketing companies have won millions of devotees on the promise of unlimited wealth and freedom. However, when the numbers do not add up, distributors lose more than their dreams. As a case in point, below is a portion of a very recent FTC release that attracted my attention.

For Release: July 6, 2000
FTC Shuts Down Internet Pyramid Scheme Five Star Auto Club Defendants To Pay $2.9 Million; Barred For Life From Multi-Level Marketing Businesses

An operation that claimed consumers could lease their "dream vehicle" for "free" while earning between $180 and $80,000 a month by paying an annual fee and small monthly payments, has been permanently shut down, and its principals have been barred for life from any multi-level marketing business and ordered to pay $2.9 million in consumer redress. The action was taken by U. S. District Court Judge Colleen McMahon at the request of the Federal Trade Commission. (For a complete copy of the courts order against Five Star visit http://www.ftc.gov/opa/2000/07/fivestar.htm.)

With a little additional research, one can find the sad ending for Equinox and Bill Gouldd, another member of the banned for life club. Their settlement was agreed to after a civil trial, lasting more than two weeks. The Federal Trade Commission and eight states had charged Equinox and Gouldd with operating an illegal pyramid scheme, and with deceptive trade practices and fraudulent advertising and recruitment of distributors.

The pure concept of network marketing is the single greatest distribution method for any product or service available in todays global market. The distribution channel through Network 2000 ultimately became what is today known as Sprint. However, just as in any trade or occupation, there are sometimes bad apples in the barrel. Many people make a purely emotional decision when they elect to join an established or start-up network marketing opportunity. I thought it might be helpful to develop an objective set of standards when considering whether a network marketing opportunity could be the right vehicle for your home-based business.

Factors for Success

1. Are there strong financial resources behind the company?

2. Are you dealing with a management that cares about the "heart of the distributor"?

3. Do you have a compensation plan that rewards the distributor for an honest effort?

4. Do you have a company that will pay commissions and ship the products on time?

5. Do you have a unique/proprietary product or service that is priced competitively?

6. Are you dealing with a management team and distributors that have a vision for the long-term?

7. Do you have leaders among the distributor base that will motivate, train, and assist the distributors in developing winning duplicatable systems to build the business?

8. Do you have a daily plan of action that will drive your organization into momentum?

9. Are there members of your group that have good communication skills, and can be honest storytellers with powerful testimonials on the products or services?

10. Do a large number of the existing distributors remain on some type of monthly autoship for the products or services?

11. Does the company incorporate the latest Internet technology for accurate reports of the genealogy online and provide the latest marketing tools for sharing the opportunity on a global basis?

12. Have you done your due diligence with existing distributors, regulatory authorities, indexing pending lawsuits, and consulting mentors that have knowledge of the good, bad, and the ugly in this industry?

13. Can a person work the business on a part-time basis and still have a fair payout under the compensation plan?

14. Can you avoid blindly following corporate rhetoric, when a dispute arises between top producers and company management?

15. Can you find harmony, teamwork, and integrity, among distributors that have the common goal of building a distributor force that will last for the duration?

I have also included a sidebar for some helpful links you may wish to review as part of your search. Let me assure you there are some great opportunities available today for the masses to have the personal growth and development that can open the doors to a wealth of opportunities. However, the first step is to do your homework and pick the right vehicle for that success. It is easy to make excuses for failure. Using this objective standard, will build a much stronger foundation to beat the odds and rise to the top of your game!

Useful Links
The Federal Trade Commission (http://www.ftc.gov/)

The State of California-Attorney General (http://caag.state.ca.us/)

U.S. Securities and Exchange Commission (http://www.sec.gov)

The Better Business Bureau (http://www.bbb.org)

Food and Drug Administration (http://www.fda.gov)

National Consumers League (http://www.fraud.org)

About the Author

Alan Rothman is an author, columnist, speaker, and consultant to Internet and home-based business opportunities. If you would like to know the real secrets of creating a seven-figure income from home, put in your request for a limited advance edition of ENetwork and Grow Rich by co-authors Alan Rothman and Trudy Hemming. See our website at http://www.enetworkandgrowrich.com Look for our upcoming nationally syndicated radio show and listen to http://www.bizsoup.com

This article provided by the InfoZone Archives at: http://www.MakingProfit.com


arothman@fea.net
http://www.enetworkandgrowrich.com/
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 • Affiliate Marketing
 • Affiliate Marketing - Basics
 • Affiliate Marketing - Development
 • Affiliate Marketing - Setting Up
 • Archive catalogue
 • Autoresponders
 • Banner Advertising
 • Business Development
 • Checklists
 • Competitors
 • Copy Writing
 • Copy Writing - ad copy
 • Copy Writing - email copy
 • Copy Writing - sales copy
 • Customer Service
 • Database Marketing
 • Direct Mail
 • Domain Names
 • E-books
 • E-commerce
 • E-mail Marketing
 • E-zines
 • E-zines: Advertising
 • E-zines: Promotion
 • E-zines: Subscribers
 • E-zines: Writing
 • Entrepreneurship
 • Free Services
 • Home Based Business
 • Home Based Business - Finance
 • Home Based Business - Getting Started
 • Home Based Business - is it for YOU?
 • Home Based Business - Marketing
 • Internet Tips
 • Market Research
 • Marketing
 • Marketing Strategy
 • Net Business Start ups
 • Networking(MLM)
 • Newsletters/Newsgroups
 • Online Payments
 • Online Promotion
 • PC KNOW HOW
 • Personal Development For Marketeers
 • PR/Publicity and Media
 • Sales Tips
 • Search Engines
 • Search Engines - Keywords
 • Search engines - Optimisation
 • Selling Techniques
 • Surveys and Statistics
 • Telesales
 • Top 10 Tips
 • Traffic and Tracking
 • Viral Marketing
 • Website Design and Development
 • ZeLatest