THE 5 Pillars of Successful MLM Company

The 5 Pillars of a successful MLM Company
March 27th, 2009 | by Chris |

Finding a good MLM company with the potential to stay in the business for many many years so all your effort and time you invested in the opportunity won’t go wasted but would bring fruits for the years to come, is not an easy task. The would be distributor should examine carefully many things in the multilevel marketing company he is planing to join and to not rush to sign up. Choosing the right network marketing opportunity is very important if you wish to make money with this business model, but what are the things that make a company successful?

Actually, 5 things are very important and can determine the viability and success of a company. The MLM training they give, the compensation plan, the policies and procedures, the timing, and the product, but not necessarily with that order. Opportunities that have these 5 points covered are the real thing and not another scam and can help a lot of distributors become successful and make a lot of money, provided of course that you are willing to do the necessary work.

Five Pillars by Betty Williams

Five Pillars of Network Marketing Businesses

Five pillar information is not for you if you don’t care which business you are in and if it is legal.

Is your CEO wearing black and white stripes!
Is your CEO wearing an orange suit?

You might be missing pillar #1

Company Integrity with Policies and Procedures

In each of these pillars do your due diligence and find out all about the company before you sign the dotted line. Joining a site is signing on the dotted line.

Where is the head office? An empty lot does not count.
Is it a scam? Check in Wikipedia
The Board of Directors cannot spell MLM!
Your sponsor cannot find the policies and procedures
You can Google the address of the company or the owner’s name. You can Google the name/spam or lawsuits and find out about the owner.

Watch for words like “terminate at will”, “sole responsibility” and anywhere that says you are responsible for a bonified list and must monitor them or you can be terminated if cannot show that you are. When you are new; how are you supposed to help someone? Think about it.

In the company name; watch for LLC - Limited Liability Coverage.
They can terminate anyone and take their paycheck. Companies in financial difficulty will do this.

Watch for the company making changes to the policies and procedures and do not have to let you know. That they have the right to change set up of the company.

Companies do dumb things. Most are under-financed and have financial difficulty.

Read anything along those lines and quit and run the other direction.

Pre-launch, Get in Early, Start Now, Don’t miss out!

You might be missing Pillar # 2:

Timing in the Company, Timing in the Industry

There is no hurry to sign up with a company. Do your due diligence and find out about the company. The company must have products to sell or they are not legitimate. A newsletter is not a product.

Check the address of the company and make sure it is in Canada or the United States and not off shore. One company had their address in an empty lot. Do you want to be a part of such a company.

Pre-launch - what they do is play with the date to see how many people will sign up and pay the $’s. If not enough then they will shut down. They will then sell the list of people who signed up to a lead list.

If there is no product or sometimes only one - check on how you pay into the system and how it pays you. Most likely it is a pyramid scheme. You can pass cash back and forth up to $10,000 with no problems. The minute you enroll someone in a business like this it becomes illegal. Get out of the scheme; you will never get your money back from this scheme. If you put it on a credit card within the last three months; you can do a charge back.

If not contact the US Attorney General’s office and under Reg Z you can apply to get your money back with their help.

Think about it; would you like to be the chick who has to cross the road and in Canada it would be Highway #1 and in the States I75 or would you rather cross the road on a quiet, beautiful street.

90% of business fail in the first year and 90% of what left fail in the second year.

If your product is on eBay for less than what you pay…
If your start up package comes in a front loader…
Your product is one you sell only once…

You might be missing Pillar #3

Pillar #3 Products that are wanted every month creating a residual income

You need

• A product people will buy every month
• A remarkable product or you are invisible.
• Focus on people and focus on the market
• Choose a product everyone else wants.
• People are people; they have goals and dreams and desires
• Do you due diligence and check out the company before you sign on the dotted line or click to join.

Worthington, Ohio on the night of November 10, 2008.
Photo by George Campbell

There are ways to check out a company. You can go to Google
and do some searches:

• Search the owner’s name/lawsuit
• Search the owner’s name/scam
• Search the CEO’s name/legal action
• Find out if the company cannot do business in all states

Look for big negatives about this company or the owner’s name should come up the search.

The business you want to work in must have a duplicatable system that anyone can follow; a proven step by step system. Don’t join a group or business if they do have such a system.

Pillar # 4

Compensation Plan

If your up-line boast that your Millionaires are prettier as they parade across the floor and you sit in the audience wondering how to buy gas for your old beat up car; you might be missing pillar # 4

If you haven’t seen a paycheck since 2005; you might be missing Pillar # 4

If the $500 briefcase you bought to join the company and you trust this company and only receive a plastic card; you might be missing pillar #4

If your compensation plan is a revolving, pulsating, swirling vortex you might be missing pillar # 4.

Since 98% of people who work a network business work part time; how many active people in the down-line are needed to earn $10,000?

Watch out for the cost of $500 to join, what it costs you to do business. Do you pay for web sites, are you buying leads from your sponsor who owns the lead list and if you bring $500 to the business; what are you paid from this. Where is your profit?

Learn to do the math for the compensation plan. It is simple and easy. Two ways to figure out your paycheck.

Bonuses are a one time payment.
Residual Income is on going and builds your paycheck.

If you buy 100 pts in products and are paid 35% or $35 in income; how many people do
you have to enroll and have active to earn $10,000 per month? The answer is 350.

Before you sign on the dotted line; do the math for the compensation plan and find out what you have to do each month to earn a paycheck. Are you going to be able to retire?

Are you working alone, has your up-line has disappeared, if there is no up to date training, if you are asked to buy leads or go after friends and family…

You might be missing pillar #5

Pillar # 5

Duplicatable Training System for Success

You want to have a proven duplicatable system for you to learn and for you to pass on to your down-line. This should be a training system with lots of people around to help you. It must be a people helping people training system.

There are lost of training programs on line. Some you pay a lot for, some you pay a little and some that are free. You usually have to buy something for the training. Most of the training is not for Network Marketing in today’s world. Mentoring or Free is not only for marketing in today’s world; it is a duplicatable system with people to mentor with and help you to your success.