3 key points top MLM leaders fail to explain to you & my top 10 tips to keep in mind when choosing an MLM.

(P.S. Before you grill me for not editing this post, I apoligize. I’ve been busy working on a business plan for a new company and have had my plate full for a while now. Anyhow here it goes. Don’t worry I’m not revealing my opportunity to you here. If you want to know you know how to contact me. =] )

There have been tons of new millionaires created in the past 50+ years thanks to MLM

Here are some key points that top distributors in all companies simply forget to tell their new distributors.

1. 99% of all “distributors” are GONE, as in KAPUT within the first 3 years (or less) So, it’s a race to stay ahead of the quitters.  Humans quit EVERYTHING, and especially MLM where there tends to be very little real investment (financial, emotional, timewise, or otherwise) keeping them from doing so.

2. 2/3 of nearly ALL the “whale” distributors earnings has come from, uh, you guessed it INFORMATION PRODUCTS – these guys have been at the “Info Product Game” before the web ever existed.  I know because some distributor  friends of mine once used high-speed cassette duplicators and would sit at the back of huge conferences and rattle off tape after tape of the current session – all at something like 85% profit margin (pretty residual too…sales continued for months afterwards as people pushed the media into their groups)

3. Rarely are you building an business distributorship – you’re building an ORGANIZATION.  If you build it properly, it makes no never mind if the company goes belly up.  Case in point: the guy I learned EVERYTHING MLM from in early 2000, who was a diamond director I believe from (translated: easy 6 figures) in Usana, is now a HUGE Isagenix distributor….that’s right – MOST of his organization came along with him.  People follow PEOPLE, not companies. (little recruiting tip for you)

If your are thinking of doing MLM in the near future, I suggest the following top 10 criteria (most of the time NOBODY takes time to choose..they usually get roped into these things): (Btw, these aren’t organized in any particular order)

1. Pick an established company. It’s usually good to choose a company that has passed the 5 year mark. There’s nothing more annoying than spending the first 2 years of your MLM career building up your organization, only to find it fall apart shortly after.

2. Pick a multinational company – My experience has been that your organization will grow much quicker if you have the ability to expand away from North America as well. Regarding some multinational companies. Be weary of full global launches. I don’t want to name names, but companies that do global launches or spread quickly into new territories often put themselves at risk, as well as their distributors. Many will disagree with me on this point, however I do believe business should be built with a strong foundation. Companies need to realize that they need to do extensive research on a foreign company. Understand what works and what doesn’t. What may succeed in one country, can flop in another.

3. Pick one with a “Global Seamless Downline” comp plan.  That means you can sign up your Aussie friend, who can sponsor his old friend from Manchester, UK, who knows someone in Kansas, yadda yadda….you’d be AMAZED how many multinational MLMs don’t do this. Also on the subject of comp plans, just how easy is it to understand?

4. Ask yourself if the product or service you will be selling is in an growing or large industry. Products and services must have huge marketability. If not, you will find it rather impossible to sell anything, no matter how much of a shark you are. (*Hint. If you’re looking for a niche, there is huge evidence that supports the prediction that the health and wellness sector would be the next trillion dollar industry. If you want to see a video on you tube, DM me on twitter and I’ll pass on the link to you)

5. Pick one that’s just as at home in a B2B situation as P2P (person-2-person)….precious few are. What do I mean by this? Message/me for a more detailed response.

6. Pick one with a real, live, tangible product, not just a hard drive full of binary fluff – those rarely last longer than a year or two.

7. Pick one that won’t restrict your internet marketing activities – unless you can be a REAL MARKETER (build your own sites, craft your own sales funnel, etc)

8. Work with a sponsor that is wiling to give you 110 % support in your marketing efforts.(*hint, *hint…. nudge nudge)

9. If you’re going to take a chance in putting your effort towards a new start up MLM, I highly encourage you to research the management. Also, how much financial backing does the company have? Like in any business, cash flow is extremely important.

10. Select an easy to understand compensation plan from the start. I’ve seen a large number of different comp plans out right now, and from what I’ve observed, there are some companies that make their compensation plans so confusing, I really don’t think they understand them fully either.  One of your key responsibilities as a SPONSOR, is to nurture your new recruit and make sure they get off to a great start. If you are finding that many of your distributors are dropping like flies, a reason for that could be due to the fact that you didn’t invest enough time to explain every detail of their new business.

Anyhow, this post is getting quite long. Before I go, I wanted to ask. Are you currently looking for a 3rd party’s opinion on a particular in the mlm / network marketing / direct selling company? If so, msg me on twitter or simply email me at paul@paulportugal.com and I’ll give you an detailed response as to why I either support or discourage your decision to work with your chosen company. Before I go, here’s my shameless plug for a new attraction-marketing based system that seems to be working quite well for my MLM business. It was developed by a few friends of mine, Norbert, Todd, and Brian —> Check us out at http://www.mlmbusinessbuilders.com