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

My Dad was always looking to make money fromconvenience. Would people buy these products
home. In the 1960's there weren't a lot ofor  services  if  they  weren't distributors?
options. He started all kinds of businesses,
from  bars  to  installing sprinkler systems.2. Company Stability: The ability to give you
long-term business and financial security,
But my Dad knew cars. He came across thisbased on their company and business history.
product which would keep your car from losingIt's best if the company has been around
traction and spinning out of control onlonger than 5 years, and shown financial
slippery roads. It worked and you could getstability and a track record of payouts. Is
rich. They cost about $500 each which was Athe company a member of the Better Business
LOT of money in 1969. So he bought 10 andBureau (U.S.), the Direct Selling Association
stored them in the basement under a sheet.or  other  highly  regarded  associations?
That way my mom wouldn't find out about his
new  adventure.3. Marketing System: System to market primary
must be compatible with the internet
One day the phone rang, and it was my mommarketing techniques and current consumer
calling  from  work.trends. Today's consumer is different than 50
years ago. Today's consumer has more choices
"Karen, hide the newspaper NOW! Don't letthan ever before. Is the marketing system
your  Daddy  see it!" (She found out anyway).promoted by this company reflect today's
consumer habits? The marketing system must be
"Why?"simple and duplicatable. Network marketing is
a  business  system  for non-business people.
"Because his business partner's been
arrested. Your father's in one of those4. Company Management: Must be led by
pyramid schemes!" (Like Dad wouldn't findsuccessful leaders in business with a vision
that  out  at  the  next  meeting?)for the future growth, not management mode.
Does the company have the talent at
And that was my introduction to networkmanagement level to effectively keep a good
marketing.product pipeline and service its distributor
base? Do they have a plan to carry this out?
Needless to say when I began my networkAre they generating positive publicity in the
marketing career in 1988, I was afraid ofpublic media - creating a buzz - that makes
getting ripped off. I literally blasted mythe  distributor's  job  easier?
first sponsor with over 70 questions. Poor
woman. She didn't know what she was getting5. Global Reach: Must be ground floor in
into with me. Everyone else just believedtheir global expansion. Management must have
what she told them. I wish I'd known aboutprior experience in global expansion. Is the
the 7 Critical Elements then! It would havecompensation plan the same around the world?
made  choosing  a  company  so  much  easier.What is the size of their product offering in
new countries? Do they have the
We are skeptical of what we don't know. Ifinfrastructure  to  support  globalization?
everyone else who is rich got that way by
working 80 hours a week, and climbing the6. Compensation & Incentives: Maximize your
corporate ladder, or discovering the wonderincome based on your efforts. Must payout at
widget, how in the world can you make 6 or 7least 50% of sales dollar, must offer
figures  in  a  part-time business from home?unlimited depth within compensation plan.
Must offer Fast Start Bonuses, must offer
Multi-level marketing is a perilous business.other incentives and recognition. You must be
On the surface, everybody says the sameable to achieve $10,000/month true residual
thing. And everyone claims to be legit. Evenincome with less than 500 people in the
the scammers. And the "MLM truth" sites hateorganization. Does the company you are
everything, so they're not a big help. What'sevaluating document its payout with U.S. IRS?
a  mere  mortal  to  do?
7. Pay-It Forward: Does the company Pay-It
Enter the 7 Critical Elements of a PrimaryForward to the masses. They must give back
Business. There are elements that every solidglobally what they are taking out. Are their
network marketing opportunity should have inproducts and policies ethical? Socially
order to give you the best potential for longresponsible? Is the company's vision is to
term  income.make an impact on the world in a positive
way. Do they encourage significant charity
Here  they  are  in  a  nutshell:corporately and amongst their distributor
base?
1. Unique Products: Products must serve
multiple market categories, be unique enoughThese criteria may seem a little too rigid to
to get patents, and the products have toyou. Maybe you just like the product you
serve the largest possible group. Are theymarket. If you just want short term cash,
consumable? Products with one-time-salesfine. But a business takes too much heart and
makes residual income difficult. Does theenergy to waste on a so-so company. There are
product line make sense as whole? Or is thecompanies that meet all of these criteria and
company just putting stuff in a catalog tomore, so it is possible! If your company can
sell? In today's highly competitive marketmeet all 7 of these critical elements, you're
you don't want to have a bunch of me-tooon your way to tremendous success. And you'll
products and compete solely on price ornever end up in a pyramid scheme.



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