Author: Gopal Dbr
Source: articlesbase.combr
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For many years, network marketing opportunities have been proven to be a legitimate way for entrepreneurs to start their own business and earn profit. Companies such as ACN, Avon, Mary Kay, AmWay and a host of others market their products/services through a network of independent representatives who have face-to-face contact with consumers. Word of mouth promotion has always been incredibly powerful and is more often than not the best way to move goods and services. Unfortunately, there have been businesses of this type that turned out to be nothing more than pyramid schemes whereby commissions would be paid to top tier representatives when new recruits were added to their downline, even if no product or service was being purchased. In those cases, lower level distributors would spend money on their franchise fee yet not be able to recoup their investment due to an unreliable/low grade product or service, that they couldnt find customers for. These MLMs were illegal and tarnished an otherwise honourable business models reputation. In MLM, as with any kind of sales or marketing, you must believe in what you are selling. Never get behind a product/service without first finding out if it is legit, and never fall for schemes selling products/services/business opportunities that make impossible promises. For example, beware of miracle products that promise instant results for wealth, weight loss, acne treatment, muscle/energy building, eternal youth, etc. Try out the products or speak to reliable sources that have. Corporate testimonials will obviously be biased (even if completely true), so it is wise to do your own research to validate the claims. Ask yourself if people will really buy what you are marketing, and if it is reasonably priced. Make sure that the MLM you are joining only pays commissions when merchandise is actually moved, not just when new recruits sign up. Selling a theoretical business opportunity is illegal. It must be proven that the companys wares are legitimate and are being distributed in order for revenue to be generated from which commissions can then be paid out. Take the time to understand the federal/regional regulations and consumer rights as well. Make sure that there are no complaints against the company with the Better Business Bureau, Federal Trade Commission, and/or Consumer Protection Agency. Also, watch out for companies that promise big earnings and instant success. If something sounds too good to be true, it most likely is. Stay away from any franchise opportunity that requires representatives to purchase a large amount of inventory to get started. With the many options available, along with the general stigma that has for the most part wrongly been associated with network marketing, people may have difficulty deciding which MLM businesses are legitimate and which are not. The easiest way to gather as much information as possible before making any commitment would be to talk to people you trust who are, or have been in network marketing. If you dont know any such people, you should visit various companies websites to see what they are about. Visit online forums to hear what others have to say about their experiences. Watch out for recruiters, both online and offline. These people will be eager to find distributors because they are getting paid to do so. They will always paint an over hyped, rosy picture of their business. Avoid these phonies at all cost! Before signing on the dotted line, make sure you are comfortable with the expectations of the company. Remember that part of the job with network marketing companies will involve working with others one-on-one, as well as having to push a product/service/business opportunity in various settings. Therefore, marketers need to keep in mind that there will be some pressure from the company to meet the minimum sales requirements and to make commissions. Take the time to read over your contract and never sign on the dotted line under pressure. If you can, talk to other MLM distributors and ask them about what to expect in the work and how they manage their time and energy. In recent decades, MLM has gotten a bad reputation due to several dishonest companies and unfortunate incidents. One has to keep in mind though, that no industry is immune to this and network marketing is no different, and no worse. Also, quite a few people who joined network marketing companies and did absolutely no work, while expecting to magically become rich have gone around unfairly trashing the business. This still happens and should never cloud your judgement. On the flipside many people have made a reasonable income in legitimate multi level marketing firms. The key is to find a good product/service with a company that is nationally known and reliable. Once you have a winner, it will only be a matter of hard work, time, and patience before your franchise is a winner as well. Gopal (The Musical Mad Scientist and Entrepreneur) www.boom.thevfusiongroup.bizbr
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pI am the musical mad scientist. I have a Masters in Biochemistry, drum in the rock band the Integral and have my own Marketing Company. Nice to meet you!/pbr
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Author: Brian Horwitzbr
Source: articlesbase.combr
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Like any other MLM business opportunity youre likely to come across, ACN (American Communication Network, Inc.) has its fair share of good, bad, and downright ugly. Its crucial that youre familiar with all aspects of whatever MLM business you decide to go with so you know which ones are doable and will play to your strengths. At this point, its important to distinguish between a legitimate MLM business opportunity and a fraud. For that, lets start with a practical definition for an MLM business. Any MLM is essentially a retail system where people, most often called distributors, build and manage their own sales force, or network. These distributors are compensated based on the sales of the sales force under them in addition to their personal sales. If youre trying to figure out if an alleged MLM business opportunity is for real or not, watch out for compensation plans that only pay you to recruit new people into the network but dont compensate you (no matter how little) for sales at your level. The Company Lets get back to ACN. The company started out in 1992 as the marketing arm for LCI communications, a long distance reseller. It was founded by Robert Stevanovski, Greg Provenzano, Tony and Mike Cupisz with only 20 distributors. In its first year, revenues reached $2 million and by 1998, it reported an annual revenue of $98.1 million. ACN operates in 20 countries which include Australia, New Zealand as well as parts of Europe, Asia and North America. Another thing to take notice of is that Donald Trump (you know from the hit seriesÂThe Apprentice – his trademark phrase isÂYour Fired!) actively endorses ACN. This endorsement gives the company serious credibility as a legitimate MLM business opportunity. Think about it. Why would a billionaire risk ruining his reputation partnering with an illegitimate company? He wouldnt, plain and simple. The Product Among other products, ACN provides a digital phone service, high speed Internet access, a wireless service, local and long distance calls, satellite TV, video phone, and home security services. No red flags here. The very fact that theyve been in business since 1992 should also tell you that theyre here to stay and not some fly-by-night MLM business. So far, so good. It seems like the easiest thing to sell because you wont have any inventory to buy or keep every single month; you wont need to approach the same customer every month to make a new sale once a deal is closed; and you wont have to ask people to spend money that isnt already part of their budget for those monthly services. And then you get to the compensation plan. The Compensation Plan ACNs compensation plan is one of the more complicated plans youll come across in MLM. You can look up the details on your own but the bottom line is that it will take an enormous amount of work to get to the point where it pays off for the distributor in residuals. This is not said to discourage you, but rather to warn you. Distributors can choose between 2 starting levels, either $99 or $499. To merely qualify for the meager 2%-8% commission on acquiring new customers (depending on what starting level you choose –$99 or $499), you would have to maintain at least 6 connected long distance customers or 8 customers using any ACN service. Once you qualify, you receive 0.25% from levels 1 through 5 of your downline, 1% on level six, and 6% on level 7. So to get to 6% commissions, you would have to build your own network to seven levels and make sure everyone on that line is at top performance in order to meet additional requirements of the compensation plan. Thats a lot of work with very little incentive to keep you going while youre building up your network! For example, just to qualify for the first earned level -ÂExecutive Team Trainer – you must be a Team Trainer with a minimum of 20 personal billing customers and have directly sponsored and qualified 3 Team Trainers by helping each of them acquire 6 connected long distance customers or 8 customers using any ACN serviceÂwithin the required time(4 weeks). Each earned level comes with its own set of arcane qualifying criteria making the top earned level–ÂRegional Vice President – almost as easy as hitting the lottery. The Verdict Im not against working hard towards achieving a worthwhile goal but in the final analysis, ACNs compensation plan is simply not designed for someone just starting out in an MLM business. This MLM opportunity is only forÂpower recruiters who can maintain the extremely high level of commitment needed to see their efforts amount to something substantial. I would not be surprised to see unusually high attrition levels with this MLM business. Not that it bothers ACN much since theyll still be making money every month from every customer youve ever acquired, even if you decide ACN isnt the right fit for you and leave. One way to combat a high attrition rate and become the power recruiter necessary to really build your ACN MLM business is through the biggest marketplace on the planet – the Internet. This way you really can market ACN all across the globe.br
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pBrian and Krysti Horwitz are professional Internet Marketers that coach hungry entrepreneurs how to use free and paid advertising online to seriously profit in business. They are the authors and creators of BulletProof Marketing, a “must-have†lead generation training tool for any network marketer, home business owner or entrepreneur. Gain access to their Free training right here: A href=http://www.bulletproof-marketing.com/?t=articlebaseBulletProof Marketing/a/pbr
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