<>

NETWORK MARKETING (MLM) - WHAT YOU NEED TO KNOW

(**Bookmark this site for future reference)

international,heritage,ihi,business,opportunities,mlm,amway,melaluca,herbalife,excel,tpn,money,investing

Dear Friend,

Before you join any Network Marketing/MLM company, I would caution you to investigate every company thoroughly, and to do so with the utmost scrutiny.

Truly successful networkers -- those who are only satisfied with LONG-TERM, STABLE, RESIDUAL income -- know what to look for in a network marketing company: they look at the company from a business perpective; and, the companies they look at (and join) must meet certain criteria.

Below is a checklist of 12 criteria which truly successful network marketers employ before joining any network marketing company. They are both logical and realistic; they are things I have known for a long time, but did not bring to bear in assessing the superficially-exciting opportunities afforded by my companies. I do now, though, and suggest you do the same.

THE 12 Point Checklist:


When looking at a business, you want to minimize your risk and maximize your success. Did you know that only one in 1000 network marketing companies survive to their fifth year? That's a .0001% chance of succeeding. Would you buy a car with less than a 1% chance that it will ever drive? The industry is littered with hundreds of companies with good products and thousands of hyped up people with empty bank accounts, garages full of product, and damaged relationships. Many companies would have you believe that products alone are everything, but would you buy a drugstore because their mouthwash works? Treat it like a business - look at their books.


Many companies go out of business because they go through rapid growth which cannot be maintained. If a company has gone public, chances are they did so because they did not have the working capital to finance such expansion and were unable to get financing because of a high debt load. Once public, the direction of the company is influenced by both shareholders and market forces, over which the company has little control.


Look for a strong management team that has a background in running large corporations and knows the challenges involved. The company should not be run by network marketers. Every company that has, has failed.


The company must have a wide range of unique, high quality, consumable products -- the key to creating long term, residual income. If a product line is limited, less than 30 items, there are often problems with the customer reorder rate. Companies with only a few products or services are doomed to fail because if a customer has not run out of the product to which they are attached, or does not like or need other products, they will not order.


Products must be competitively priced to be better or comparable to similar products in the marketplace, otherwise there is no incentive for people to change their buying habits. Consumers should not have to find new dollars to purchase the company's products. Does the company manufacture their own products? If not, the products will be more expensive than they need to be and the company will not have control over things like quality and production schedules.


What do you have to do to receive a monthly cheque? Do you have to sell, deliver or ship product? Are there large volume requirements? Are people earning most of their money from start-up or enrollment packages, as was the case with IHI, or from customers reordering on a monthly basis? The fact is that people don't have the disposable income to purchase large amounts of product to meet high volume requirements. If enrollment stops and your business stalls out, this is a sure sign that high volumes and not regular monthly ordering by customers fuel your business; if that is the case, the business teeters always on the edge of failure.


For an ordinary person to be successful in this industry, the monthly product reorder rate must be a minimum of 40%. If the rate of reorder is any less, the average value per order needed to ensure your income flow is too high to maintain. Most multi-level marketing companies have a reorder rate of 8-16%, not enough to stay in business, unless your “business” is simply bringing in more and more downline people, and their money. If the steady flow of new recruits is not maintained on a month-to-month basis, the business will burn out. Without a healthy reorder rate, people must constantly be enrolled to replace those who have quit. Ask to see a business report to verify the buying patterns over three months. If no one will show you one, this is a red flag.


What is the company's attrition rate? 95% of all network marketing companies have a 90% or more fall-out rate. In these companies, the first three weeks of the month are spent replacing those people who quit the previous month. Look only at companies that can verify a 50% or less fall-out rate.


Many companies charge high initial membership fees, require the purchase of expensive ‘starter kits/packs’, and require a purchase of inventory (also known as front-end loading) -- some into the thousands of dollars. Don’t touch these companies. The initial start-up cost for any networking business should be a reasonable cost, somewhere between $50-$500. Don’t waste thousands of dollars to fill up your basement with inventory. How many people (with any common sense) do you know who are going to want to put out such a large initial investment? Not many. That’s why most of these companies are short-term, as are their profits.


A company should have products and services in all of following industries:

a. pharmaceuticals/health/nutrition
b. telecommunications
c. financial products and services
d. travel

A company must have products and services in these areas for two primary reasons: (1) the aforementioned are growth industries, and (2) having products and services in these areas creates the necessary product and service diversity in a company to guarantee long-term growth for the company, and long-term, residual income for its representatives.


Breakaway programs are often termed ‘ponzi’ programs. They are called ponzi programs because basically the structure is set-up to funnel money to the people at the very top. The people in the middle usually carry the inventory, and the customers usually pay far too much for the products.

Binary programs are often termed ‘sucker’ programs. They are called sucker programs because, again, like the breakaway programs, in binary programs it is those that are positioned at the top that make the money.

Example of failed binaries:

International Heritage Inc.
Jewelway
Gold Trust
Gold Unlimited


Any company that has any integrity or belief in their opportunity will refund your money within the first 90 days. A 90 day refund policy should be the minimum refund period to look for in a company, because within the first 60 days, people are still excited, and they usually won’t quit. It’s after 60 days that people start to question the viability of a business, because they haven’t made any money yet. That’s why most only offer a 30 or 60 day refund. If a company doesn’t have a 90 day refund policy, it says a lot about the company, in terms of its integrity and its management’s belief in the opportunity.

Why People Choose

Melaleuca


-13 year-old company
-Sales in excess of $300 Million, 58% of which is given back to the field
-4A1 Financial Rating from Dun & Bradstreet

Inc. 500 -- Five Years in a Row


Melaleuca is one of an elite few companies ever to appear five times in Inc. magazine's yearly indexing of America's 500 fastest-growing, privately held companies. Inclusion just once on this prestigious list is a notable achievement for any company; appearing five consecutive years is a reflection of the superb performance of this unique company. In fact, Melaleuca appeared on the Inc. 500 more than international corporate giant Microsoft, the world's largest software manufacturer, which appeared three times. Additionally, Melaleuca is one of very few companies to maintain an "A" profit rating for each of those five years.

Winner of the Presitgious Blue Chip Enterprise Award

Melaleuca was awarded the U.S. Chamber of Commerce 1991 Blue Chip Enterprise
Award. Only 200 small businesses in America were chosen to receive this prestigious
award as part of the Blue Chip Enterprise Initiative Program. Melaleuca was singled out because of its ability to succeed in the face of tremendous economic challenges.


Debt-Free, Privately-Held company [that means it’s well-funded and secure, folks, unlike some companies lately-lamented].


The company is run by management with experience in operating corporations such as Cox Cable (HBO, etc.), and multi billion dollar ADP (a data-processing company traded on the NYSE).

The company has a wide range of unique, consumable, high quality products
which is the key to creating long term, residual income.


Products are competitively priced to be better or comparable to similar products in the marketplace, creating an incentive for people to change their buying habits. Consumers do not have to find new dollars to purchase the company's products; they simply change stores. The company manufactures its own products.


To receive a monthly cheque you do not have to sell, deliver, or ship product. There are no large volume requirements. It costs about $50 to qualify for a cheque. People
are NOT earning their money from start-up or enrollment packages.


People ARE earning their money from customers reordering on a monthly basis.


The company has one of the highest reorder rates in the industry. The reorder rate is 96%. This is not fiction, this is fact. Monthly downline reports not only show one’s downline, but also show who is ordering and who is not.


The attrition rate is 6%. That’s a 94% retention rate, unheard of in this industry.


The initial start-up cost for this business only $29.00 in the U.S., and only $39.00 in Canada. The largest ‘starter kit’ of products is ABSOLUTELY optional, and costs $275.00.


As a product of careful planning, this company has products and services in all of the current growth industries:

a. pharmaceuticals/health/nutrition - personal & skin care; nutritional; home hygiene.
b. telecommunications - long distance services (8.5 cents /minute) etc.
c. financial products and services - VISA & Mastercard programs (5.9% interest)
d. travel - preferred travel club

These products and services provide the diversity to create long-term growth for the company, and long-term, residual income for its representatives.


The company pay plan is neither a breakaway nor a binary. If you forget why that’s important, back up and read again; it’s worth the time.


The company has integrity and belief in their opportunity, and will refund your money within the first 90 days. You can try the products and the opportunity for 90 days, and if you don’t like the products or you don’t think the opportunity is for you, you simply request a refund and that’s it.

Summary

What’s interesting about Melaluca for me, is that I had looked at it before -- five times -- and turned it down. I think the primary reason I didn’t join was because there was no hype. There were no grandiose promises and declarations, and I thought it was just like Amway [aargh!].

Now, when I look at the company, its track record, and everything else, I do it from a business perspective. I can’t defend Melaluca as a program or company, and I don’t need to. Its record speaks for itself. No hype. No empty, emotional, “I can’t hear you” pep rallies. No speculation. Just fact.

If you’re interested in finding out more information about Melaluca, you ccontact me via email, visit the corporate site (at www.melaleuca.com), or contact me by phone. (Be sure to bookmark this site so that you can return to it later).

Whatever your decision, be smart. Don’t lose your hard-earned money again. Don’t be disappointed. Talk is cheap. Money talks, and so do facts. Follow the 12 criteria outlined here when evaluating all network marketing programs. I did it with Melaleuca; you can do the same, or apply it to other companies as well. Just... be careful.

Good luck.

Best wishes,

Carlton Watson


Watson & Hubbard
(604) 924-0898


international,heritage,ihi,business,opportunities,mlm,amway,melaluca,he rbalife,excel,tpn,money,investing