Daddy's Upline's Been Arrested! How Not to Get Caught in a Pyramid Scheme

My Dad was always looking to make money2. Company Stability: The ability to give you
from home. In the 1960's there weren't a lot oflong-term business and financial security, based on
options. He started all kinds of businesses, fromtheir company and business history. It's best if the
bars to installing sprinkler systems.company has been around longer than 5 years,
But my Dad knew cars. He came across thisand shown financial stability and a track record of
product which would keep your car from losingpayouts. Is the company a member of the Better
traction and spinning out of control on slipperyBusiness Bureau (U.S.), the Direct Selling
roads. It worked and you could get rich. TheyAssociation or other highly regarded associations?
cost about $500 each which was A LOT of3. Marketing System: System to market primary
money in 1969. So he bought 10 and stored themmust be compatible with the internet marketing
in the basement under a sheet. That way mytechniques and current consumer trends. Today's
mom wouldn't find out about his new adventure.consumer is different than 50 years ago. Today's
One day the phone rang, and it was my momconsumer has more choices than ever before. Is
calling from work.the marketing system promoted by this company
"Karen, hide the newspaper NOW! Don't let yourreflect today's consumer habits? The marketing
Daddy see it!" (She found out anyway).system must be simple and duplicatable. Network
"Why?"marketing is a business system for non-business
"Because his business partner's been arrested.people.
Your father's in one of those pyramid schemes!"4. Company Management: Must be led by
(Like Dad wouldn't find that out at the nextsuccessful leaders in business with a vision for the
meeting?)future growth, not management mode. Does the
And that was my introduction to networkcompany have the talent at management level to
marketing.effectively keep a good product pipeline and
Needless to say when I began my networkservice its distributor base? Do they have a plan
marketing career in 1988, I was afraid of gettingto carry this out? Are they generating positive
ripped off. I literally blasted my first sponsor withpublicity in the public media - creating a buzz - that
over 70 questions. Poor woman. She didn't knowmakes the distributor's job easier?
what she was getting into with me. Everyone else5. Global Reach: Must be ground floor in their global
just believed what she told them. I wish I'd knownexpansion. Management must have prior
about the 7 Critical Elements then! It would haveexperience in global expansion. Is the
made choosing a company so much easier.compensation plan the same around the world?
We are skeptical of what we don't know. IfWhat is the size of their product offering in new
everyone else who is rich got that way bycountries? Do they have the infrastructure to
working 80 hours a week, and climbing thesupport globalization?
corporate ladder, or discovering the wonder6. Compensation & Incentives: Maximize your
widget, how in the world can you make 6 or 7income based on your efforts. Must payout at
figures in a part-time business from home?least 50% of sales dollar, must offer unlimited
Multi-level marketing is a perilous business. On thedepth within compensation plan. Must offer Fast
surface, everybody says the same thing. AndStart Bonuses, must offer other incentives and
everyone claims to be legit. Even the scammers.recognition. You must be able to achieve $10,000
And the "MLM truth" sites hate everything, somonth true residual income with less than 500
they're not a big help. What's a mere mortal topeople in the organization. Does the company you
do?are evaluating document its payout with U.S. IRS?
Enter the 7 Critical Elements of a Primary7. Pay-It Forward: Does the company Pay-It
Business. There are elements that every solidForward to the masses. They must give back
network marketing opportunity should have inglobally what they are taking out. Are their
order to give you the best potential for long termproducts and policies ethical? Socially responsible?
income.Is the company's vision is to make an impact on
Here they are in a nutshell:the world in a positive way. Do they encourage
1. Unique Products: Products must serve multiplesignificant charity corporately and amongst their
market categories, be unique enough to getdistributor base?
patents, and the products have to serve theThese criteria may seem a little too rigid to you.
largest possible group. Are they consumable?Maybe you just like the product you market. If
Products with one-time-sales makes residualyou just want short term cash, fine. But a
income difficult. Does the product line make sensebusiness takes too much heart and energy to
as whole? Or is the company just putting stuff inwaste on a so-so company. There are companies
a catalog to sell? In today's highly competitivethat meet all of these criteria and more, so it is
market you don't want to have a bunch ofpossible! If your company can meet all 7 of these
me-too products and compete solely on price orcritical elements, you're on your way to
convenience. Would people buy these products ortremendous success. And you'll never end up in a
services if they weren't distributors?pyramid scheme.