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("Is Your MLM Company About To Go Out of Business?" : MLM Network marketing secrets - is another great article about mlm, network marketing and a little about home based business on mlm network marketing Is Your MLM Company About To Go Out of Business? I was shocked last week when I found out from a reliable source that there are just 29 MLM companies today that are 5 years or older! I'll say that again -- there are just 29 MLM companies today that are 5 years or older!)

"Is Your MLM Company About To Fall Out of It's Chair (Go Out of Business)?"
By Robert Blackman

I was shocked last week when I found out from a reliable source that there are just 29 MLM companies today that are 5 years or older! I'll say that again -- there are just 29 MLM companies today that are 5 years or older!

Incredible, isn't it? With the thousands of opportunities available today, you'd think that more than just 29 companies would have made it past the 5 year barrier. But, for a number of reasons they haven't.

A MLM company is only as solid as the chair it sits on. I like to think of it as a 4-legged chair. It takes all four legs to make a chair stable. If just one leg breaks, then the chair becomes unstable and you fall over -- much like those MLM companies who didn't make it past year number five. Here's the 4 key elements or 4 legs that your MLM needs its chair to be sitting on!

Leg #1 Compensation Plan

You've probably heard the old saying that 20% of the people do 80% of the work . Well, it s true. I know from personal experience that close to 80% of those in my downline NEVER sponsor anyone -- ever! That's why support systems are so important to help those who want to make it survive the 90-day fall-out stage. But, ultimately, you're in a MLM to make MONEY. And don't let anyone convince you otherwise.

I had an opportunity to see first-hand this summer when I was flown out to one of my MLM companies to be courted about their new pay plan. This company is a health and nutritional driven company, with most of its big 5 figure monthly income earners doing trade shows and selling product.

Most of these top wage earners are vegetarians and live and die by the product. And, they make no bones about the only reason they are in this company is because of its products, period!

Needless to say, I saw a quick 180 degree turn-around to this philosophy when they saw their checks go from $20,000 a month to about $2,000 due to a simple qualification they didn't meet in the new pay plan. All their high-standards about the product line went out the window when their checks dwindled!

Why? Because, just like you and I they have families to feed and children to put through college. And, they raised their level of living right along with their checks! End result? Rumor has it they are starting their own MLM company, while a few others secretly joined another MLM company.

The bottom line is if you're not making money you're not going to stay involved long term, period. And, if the company changes the pay plan on you too many times and your check keeps going down, you'll move to another!

Make sure your MLM companies pay plan is easy to explain to a non-MLM er and that someone can make money quickly and easily within the first 90 days.

Leg #2 Product Line

Products and services sometimes seem to get lost in all the hoopla of how much money you can make. But, without a legitimate product or service that is fairly priced and in demand, your downline will ultimately leave your company due to the inferior product.

Yes, you're in MLM to make money, but you don't want to be recommending a product or service that you know is inferior, or that you and your family don't, or won't use yourself. You know, it's okay to sell your product or service at the retail price and get a steady stream of customers.

It's also a requirement that your MLM company can be retailed. If the only way you can make money in your MLM is by recruiting other wholesale distributors, then your company is in trouble, and probably won't make it past the 5 year mark. In order to be legal, you and your downline must be able to make money in your MLM without every sponsoring a soul!

There has to be a single-level source of making money -- mainly retailing. If your product or service can't be retailed, or your company doesn't provide this, beware.

Leg #3 Customer Service

The last thing you want is to spend around $50 in advertising, postage, printing and phone calls to recruit someone and have them call the home office and be treated rudely. Sure, if someone drops out over a brisk customer service phone call, maybe they were never going to build the business anyway, but aren't you entrusting the parent company with YOUR downline?

If your company constantly ships their product late, leaves distributors on hold for 10 minutes, or won't exchange or refund product then look somewhere else. They won't be around for long. The distributor of the 90's is a different breed from the distributor of the 60's, 70's and even 80's.

They're less tolerant and they want it NOW! If your customer service can't handle the attitude of the 90's then they'll be a distant memory when we hit the century mark.

Leg #4 Management

Just recently I heard that a up and coming company stopped their automatic shipment policy. This is where you and your downline get their product or service shipped every month and your checking account and credit card account are automatically drafted through your prior approval.

The real factor here is convenience. Who wants to mail in a check every month to order product and make sure they don't miss out on any commissions? Nobody. Now, the sad part of this story is that this company's first leg (pay plan) was one of the strongest in the industry.

Yet, distributors are dropping out, or joining other similar type programs on the back side to hedge their bet. The vision of the management seems perplexing. Why would they do such a thing? Your guess is as good as mine, but you'll find that they will hurt their growth and retention rate significantly with such a questionable move.

This just proves my point. Regardless how strong your MLM company may be in any of these four areas you need all four in order to have a solid foundation that will take you past the crucial 5th year. If your MLM fails to perform in any of these 4 major areas you better get out of the way before they fall over on you -- trust me.