RANDY FRIED

Thanks Bob and Anna, I think this is one of the most important keys to everyone’s success and should be considered very carefully

Sandy Botkin warns, “Before jumping into any opportunity, stop and breathe deeply. Let the enthusiasm cool off. Then begin the process of deciding which company to join by finding the answers to a few questions.” For example …

What is the compensation plan offered?

• After investigating the quality of the products or services offered by a company, one of the most important considerations is the company’s compensation plan.
  

• Comparing compensation plans from one company to another is difficult. (The Perfect Compensation Plan)
  

• Companies use a myriad of formulas. One way to simplify the process is to ask:

• How difficult is it to make it to the top? (The 10k Question)

• Do you need 5 good lines (active distributors under you) or will 2 lines do?

• What do you get by acquiring customers vs. acquiring distributors?
  

• Customers, not distributors should be the focus of the company.
  

• Thus the compensation plan for selling product/services should be at least as generous as that of bringing in new distributors.

• Are the numbers doable and realistic?
  

• Are you pushed to buy a lot of inventory up front to make a higher commission rate? It’s better to try a small amount of product first, see how you like it, see if other people are interested in buying it before investing in large inventory.
  

• If you are not satisfied with the compensation plan, you or the people you recruit will not stay long with the company.
  

• Even if you stay, you may lose people you have invested time and money in to other companies. (No Pay, No Stay)
  

What other miscellaneous benefits does the company provide?

• Does the company offer non-cash rewards?

• Some companies provide distributors with the equivalent of franchises without a franchise fee.
  

• They not only provide marketing materials but also management information, tax information and even an accounting system.
  

• Find out what is contained in both the distributor or upgrade kits. Many times the upgrade package may be a much better deal even though it is more exclusive.

This is an excerpt from an excellent article by Sandy Botkin, well known CPA, attorney, and tax advisor to the self employed. To read the full article, click here.

For more questions to ask of an MLM opportunity, click here and look for Pillar Four.

To download the free ebook Success In Ten Steps and get started right, click here.