Straight Talk - An Open Letter To You

"How To Choose A Biz Opp Without Losing Your Shirt"

by John Glube, © 2003, all rights reserved of
Head's Up - A Copywriter's Journal

The bug has hit, you have glitter in your eyes and you're chomping at the bit, raring to go.

Before you plunk your hard earned cash down on the table, take a step back. Don't get me wrong. Working from home can be a wonderful adventure, giving you the opportunity to be yourself and make your mark.

You want to do a bit of homework. Hey, you’re starting out a business. Yes, a lot of negative things have been written and said about "multi-level marketing."

But, the concept of marketing a product or service using multiple distribution levels is as old as the hills.

* The first area to examine closely is the compensation plan.

Will you be paid for recruiting new distributors? If the answer is yes, then steer clear. This is an illegal pyramid scheme.

To quote from a publication put out by the FTC:

"Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people-except perhaps those at the very top of the pyramid-end up empty-handed."

Satisfied, everything is on the up and up?

* Here are a few more questions you will want answered before becoming a distributor:

What's the company's track record?

What products or services does it sell?

How does the company back up claims it makes about its product or service?

Is the product or service competitively priced?

Is it likely to appeal to a large customer base? What does the "market want?" Does the product or service meet a "market want or need?"

What up-front investment do you have to make to join the plan?

Do you have to make a minimum level of sales each month?

Will you have to recruit new distributors to be successful in the plan?

When the company is not a start up, can you get a copy of an audited financial statement showing the average earnings for distributors in the previous year?

Can you have access to the audited financial statements for the company?

Can you interview other distributors in your area (and in doing so, be cautious of "plants")?

* What are typical problem signs:

Are you being pressured to make a decision today? Hey, do your homework and then makeup your mind.

Be cautious, when a distributor tells you "For just $... you'll be on the road to riches."

* Income promises. Get them in writing and ask for independent verification. Do you understand, even with the best product and the most workable compensation plan, you are going to have to invest "sweat equity" as well as more money to turn your investment into a success story?

* What are your duties as a distributor?

Do you appreciate you are responsible for all the claims you make about the company's products and the company, even when you simply copy the company's marketing materials?

When you promote the qualities of a product, you have to truthfully present these claims and make sure there's enough solid evidence to support them. It is not enough to simply pass on the company's claims.

"The Federal Trade Commission advises you to verify the research behind any claims about a product or service's performance before repeating those claims to a potential customer."

And, when you decide to bring in new distributors, remember (in "FTC - ese"):

"You're responsible for any claims you make about a distributor's earnings potential. Be sure to represent the opportunity honestly and to avoid making unrealistic promises. If those promises fall through, remember that you could be held liable."

* The bottom line? Ask questions. Do your homework. Check out any competing biz opps promoting similar products or services on the market. Review your plans with a business advisor. And when you are ready, "don't be scared of nuthin," stay focused, have fun and make money!

For a further understanding of what questions to ask and the potential pitfalls with biz opps, you will want to review these FTC publications:

Top Ten Dot Cons: Home Page

Lotions and Potions: The Bottom Line About Multilevel Marketing Plans

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Click here for the article - "The Art Of War, Internet Marketing And You"

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John Glube, Publisher and Editor of Head's Up, A Copywriter's Journal. Not yet subscribed to the Journal? To get the details, plus your Free Courses "Discover How Anyone Can Get More Buyers" as your reward and learn how you can place your 400 character business to business ad Click Here.

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