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How Not To Get Scamed By A Network Marketing Company
      By Michael Klimek

The *Legitimate* side of the Network Marketing industry is well established ($40 Billion+) and growing.....but....... the World Wide Web has opened another floodgate to the proliferation of MLM charlatans, money games, etc...

So why is this so important to the general working population in the USA?

Well, front page of of the September 1, 1997 USA TODAY newspaper read: 70% of Workers Feel Less Secure About Jobs.. Explaining an Economic Paradox.

The article went on to say: Despite the Best Economic conditions in a generation, more than two-thirds of U.S. workers say their sense of job security is lower and job stress higher than it used to be, according to a new survey........

Widespread worker insecurity, despite the best economic conditions in a generation, remains an Unsettling Paradox

TheBottom Line:The USA work force, both blue and white collar, are dissatisfied and insecure. This is making millions of people look at other options like Network Marketing!

The major problem is that people have not been educated on how to really evaluate a Network Marketing business! As Tony Robbins says:

Successful People ask better questions, and as a result, they get better answers.......ask the wrong questions and you’ll get the wrong answers!

Before giving you just a couple correct questions to ask, be absolutely certain to keep a few facts in mind:

  1. The goal of MLM is Permanent, Automatic, Monthly Residual Income!
  2. 9 out of 10 of us do NOT want to be in sales! (or pestering our friends & families)
  3. 99 out of 100 of us are NOT recruiting types !
  4. 99.9% in MLM will only sponsor a handful of people and only have around 20 active people in their business! So, here are just a few critical questions and things to look out for so you won’t get scamed!
Make a sound business decision in evaluating a Network Marketing Business! Ask these Exact Questions:

1. How long has the company been in the NETWORK MARKETING Business? You don’t have a future if the company does not have a future! Fact: In over 40 years, out of the tens of thousands of MLM companies,only 30 companies have lasted more than 5 years!!!

NOTE! : Don’t get deceived by this one!!! Many upstarts will deceitfully hitch their wagon to a longstanding Non-MLM company saying A new division of a Multi Million $, 20 year old company...

Bottom Line:If the company has Not been successfully in the Network Marketing Business for about 5 years, your chances of making Long Term Residual Income are between slim & none!

Why? Because objective historical fact has shown that 99.9% of mlm companies are out of business within 5 years!

2. Exactly what will my monthly residual income check be if I sponsor 4 people and each one of them has 4 people?< In other words, let’s take a round figure of $100 in business volume per each of the 20 people total in my group (20 X $100=$2,000 group volume)..... What will I be paid per month?

Now you have a way to compare apples to apples without falling prey to the misdirection of smoke & mirrors of many compensation plans!

NOTE! The compensation plan is THE most important element next to the company being in business long term!!!

Most companies promote the top earners incomes and use it as recruiting bait to sucker in the masses. Don’t fall for any of it......don’t fall for the hype !

Bottom Line: If the compensation plan does not pay good residual income to the average (non sales, non recruiter) person, don’t get involved! When most people do not make a net positive cash flow within 90 days, they’ll quit...... no matter how long the company has been around or how fantastic the products are!!

P.S. According to most industry experts, that net income must be at least $300 per month in residual income!!

3. What is the exact system that is in place for me to build my business? In other words, what will I be doing? What you are looking for is a Proven system of building your business that does Not require personal selling or recruiting!

In other words: A proven Duplicatable system that can be done by the majority !

And today...... that system must be a Wave 3 hi-tech system......a system of intertwined recorded teleseminars, fax-on-demands, voicemails etc. that does most of the speaking,selling, sifting and sponsoring for you.

There are many other things to look out for......... but don’t forget one last thing: To succeed (in anything) you Must become a student of the business!

Here in Hawaii it even takes 5 years to get your Master Plumbers license!.....but many people have false expectations that they’ll make big long term money in MLM overnight without fine tuning many skills such as:

  1. How to employ yourself!
  2. How to assume personal responsibility!
  3. How to be self functional!
  4. How to stick to a DMO (Daily Method of Operation)!
  5. How to have perseverance & stick to one company!

Network Marketing done correctly is an enriching experience on all levels! Use common sense: don’t fall prey to the emotionality of hype. Make a wise business decision!

You don’t deserve to be another MLM Causality!


MICHAEL KLIMEK is author of this ***copyrighted*** article , the MLM TRUTH is his on line biweekly newsletter. Michael is a former founder & owner of an MLM Company & an 10 year, full time network marketing professional. He lives with his wife and 2 children in Maui Hawaii. He can be reached at mlmtruth@usa.net or http://www.mlmtruth.com (808)573-3336 or (808)876-1347 Fax


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