Be Your Own MLM Detective Today - Here's Your Due Diligence Training
Internet Investigate! DETECTIVE Program 2007™
13 SIMPLE INVESTIGATIONS TO AVOID GRIEF BEFORE YOU
START A HOME BASED BUSINESS OR MLM!
PLUS: FTC Warning on the Bottom of the Page!
CLICK THE LINK BELOW TO GET THE NEW VERSION OF THIS DUE DILLIGENCE PAGE!
MLM INTERNET DUE DILIGENCE TO FIND A GOOD MLM
What is the MLM-Network Marketing product, do you like it? Ask yourself if this MLM product that interests you or excites you. Is it something that would sell in traditional distribution channels? How many competitors are there for this specific product? What is the competition like? Have you tried the product and liked it? You are going to have to promote the product so make sure that you like it and believe in it. Top networkers are evangelists for their products, so make sure you believe in it and better yet love it.
Why Join an MLM – Network Marketing Company? If you think it's going to help An income crunch, with no work, don’t be on it. If you look at it like a part time job great! People do make amazing amounts of money but it takes work. . If you think you're going to be rich in six months or a year don’t bet on it, First look for an income level that replaces a job so you can work on your MLM full time. It is great to have a vision, but don't bank on being showered with millions of dollars. Remember that if you love the product really believe in it, that gives you a boost
MLM INTERNET DUE DILIGENCE TO FIND A GOOD MLM
Did you try the product or service first. One of the best ways is to start out as a discount customer to see if you like or love the product or service. Some MLM-Network Marketing leaders (and MLM-Network Marketing Companies) think it is best to sign people up as customers first. Then if they like or love the MLM-Network Marketing product, they'll be drawn to become a rep. Others push signing up as a distributor right at the start. Check the MLM-Network Marketing Company’s policies most good MLM companies have a 90-day and some a year return policy. If they have that policy signing up as a Distributors from day one should not be red flag for you if you are responding to the "income opportunity" from day one. This is one of the benefits of joining a good MLM – Network Marketing Company. If they do not have money back return policy DO NOT JOIN!
When do you start making money? It may take some time for your MLM – Network Marketing endeavors to show a profit. If you are retailing MLM-Network Marketing products you should start earning money within just a few days or weeks if it is a good product. Making a living In MLM-Network Marketing may take longer. The best plan is to work your MLM project part-time in addition to your other income sources. Can you realistically with your time available do that with this MLM product and company
How about your sponsor (most commonly called your “upline)? What are they going to do to help you sell the MLM Product or service. Your sponsor is the person who introduced you to the MLM Network Marketing opportunity. They or their upline are responsible for helping you and training you. Are they willing to make a commitment to you to in terms of time or resources in making three way calls, or helping you with leads? Do they quickly introduce you to conference calls and or webpages for training? Are they or your MLM – Netowrk marketing up line successful are they with preceding MLM activity? Is the MLM-Network Marketing company free of any investigations by Attorney Generals or the Federal trade Commission. Does the MLM Network Marketing provide training tools and information that helps new Distributors. A quick survey of the Company website can tell you this? Have they Investigate your entire upline just like you would a business partner you'd never met before.
LOW TECH QUICK INVESTIGATION FOR YOU NEW MLM DETECTIVES
Look at the MLM company’s website if it is sloppy run!. First clue would be no physical address! Worse yet, only an email address, no contact long distance or local phone number. Then look for the pictures and names of the owners of the company. NO PICURES = RUN
DETECTIVES! ANOTHER LOW TECH FAST PUSHBUTTON QUICK INVESTIGATION If the Address is PMB that = "rent a mailbox" from a commercial mail box establishmnet. They do not have the legal protection! When you see PMB = run! If they tell you not to use U.S. Mail and send money orders/cash via Fedex or UPS... Run! This trick research keeps you out of court rooms!
LO TECH BEST DUE DILLIGENCE AN MLM - NETWORK MARKETING CO.
Another low tech secret of MLM Millionaires and their research! Don’t let the money over-excite you! Use the products or services being sold first! If they excite you, then look at the money. This is more common sense DUE DILLIGENCE research than true MLM - Network Marketing Detective work
LO TECH DUE DILLIGENCE TO INVESTIGATE AFFILIATE - MLM - COMPANY.
NEVER SPEND OVER $500 TO START: See the FTC warning below this article. There are also approximately 21 states that say this should be the maximum to get started in any business opportunity (not just MLM). Two states say it must be kept under $200. Following the advice in #6 should not cost over $500. SeeFederal Trade Commission (FTC) warningS
DUE DILLIGENCE DETECTIVES A MUST DO WAY TO INVESTIGATE A COMPANY USING - MLM - NETWORK MARKET
MLM DUE DILLIGENGE RESEARCH: Go to the Better Business Bureau (new window) web site for the city where the MLM-Network Marketing company is located. Some are free, some charge $2! You are looking for the number of complaints the BBB has NOT resolved. If there are more than 3-5, hold off joining. This research could serious problems.
FTC + WATCHDOG INVESTIGATIONS & DUE DILIGENCE
Internet Home Based Business Opportunities: Are Some Just A Scam?
Generally does not include most good Affiliate, MLM - Network Marketing - Party Plans
Jan 2006 – You see them monthly, daily and weekly. If it's grabbing people to sell so-called web access kiosks, web connected ATMs. or dealing in other Internet-related activities, consumers are being lured to the vast commercial potential of the web by business promoters.
However, the U.S. FTC (United States.Federal Trade Commission) says that many of these home business opportunities are scams that promise far more than they can possibly deliver. Ed. Note: Detectives in training You need to do Due Diligence! Go back above and do your Detective work on your computer!
The scam artists pull in innocent entrepreneurs with false promises of big earnings with little work. They pitch fraudulent home business and business opportunities on the web via mass spam; through TV infomercial's, classified ads in your local newspaper, opportunity magazine "advertorials", telemarketing pitches, free seminars, and mass mailings.
Here are a few recent examples of Internet-related business opportunities identified by the Federal Trade Commission (FTC) that often pull in unsuspecting entrepreneurs.
Example 1: Selling walk-up Internet access
The Pitch: The promoter claims you can earn big money by selling machines or kiosks that provide walk-up Internet access - for a fee - in places like airports, hotels and shopping malls. They supposedly suck in dollar bills and quarters like a vacuum machine. The machines cost thousands of dollars, but the promoter says the cost can be recovered because the machines generate automatic "amazing" earnings. And the company promises to help find (read that sell) profitable locations for the machines. Editors Note: This was done once trying to use an MLM - Network Marketing type pay plan... but it was a scam, just like the 100 others that sprung up without an MLM pay plans. Do your Investigations and Due Diligence!
The Problem: Guess what? The high-traffic locations that the promoter promises are gone. The buyer's machines get placed where demand for Internet access is low. As a result, a would-be entrepreneur can't possibly make the promised earnings. Ur Ed. note: Detectives this also comes up with ATM machines - Investigate = Using YOUR MLM - Network Marketing Detective Tools above
Example 2: Giving seminars/meetings on making money on the Internet
The Pitch: The promoter advertises that you can earn more than $150,000 as an "Internet Consultant" who sponsors free seminars to teach other consumers how to make money on the Internet.
The Problem: The seminars really feature fast moving high-pressure sales pitches for the promoter's Internet yellow pages or for another form of Internet advertising. Even though the "shady" promoter promises to provide Internet and sales training to buyers - for a fee of several thousand dollars - the buyers never get the promised training. In the end, they never earn even remotely the promised amounts.
Example 2: Providing TV access to the Internet
The Pitch: The fast talking promoter promises that you can earn thousands and thousands of dollars a month by recruiting people to sell devices that provide television access to the Internet. Ed. Note: This one is dead and gone if you investigate it, but it may get recycled! Detective in Training help friends with Doing their Due Diligence above!
The Problem: The program claims to pay participants based on how many people they recruit into the program, not on their product sales. No product or actual services? That makes the program a pyramid scheme - not a legitimate multi-level marketing plan. Pyramid schemes are illegal. Mathematically, nearly everyone who participates in them loses their money. When there are no new recruits, the pyramid collapses. MLM Watch Dog Ed. Note: MLM Detectives -- This is at the heart of most Pyramid Schemes, Investigate and Do YOUR Due Diligence! Ask - would I buy this product or service if there weren't a chance to make money!
The FTC gives this advice to consumers thinking about an Internet-related business opportunity:
•Consider the promotional deal carefully. If it claims buyers can earn a certain income, then it also must give the number and percentage of previous purchasers who achieved the earnings. If an earnings claim is there - but the additional information isn't - the business opportunity seller is probably violating the law. Make this part of your Due Diligence to avoid scams.
•Get earnings claims in writing. If the business opportunity costs $500 or more, then the promoter must back up the earnings claim in a written document. It should include the earnings claim, as well as the number and percentage of recent clients who have earned at least as much as the promoter suggested. If it's a work-at-home or other business opportunity that involves an investment of under $500, ask the promoter to put the earnings information in writing. ED Note: This is new in FTC warnings as of this date! In general they have never enforced the $500 federal limit, or pushed registrations at the federal level. The Watchdog notes this may be a change in practice for the FTC. Either way, the $500 limit is a good guideline, if it's over that amount ...turn your scrutiny knob up to high!
•Study the business opportunity's franchise disclosure document ( MLM WatchDog Ed. Note: required if over $500 in six months). Under the FTC Franchise Rule, many business opportunity promoters are required to provide this document to potential purchasers. It includes information about the company, including whether it has faced any lawsuits from purchasers or lawsuits alleging fraud. Look for a statement about previous purchasers. If the document says there have been no previous purchases, but the seller offers you a list of references, be careful: the references, they are probably phonies.
•Interview each previous purchaser in person, preferably where their business operates. The FTC requires most business opportunity promoters to give potential purchasers the names, addresses and phone numbers of at least 10 previous purchasers who live the closest to the potential purchaser. Interviewing them helps reduce the risk of being misled by phony references.
•Contact the attorney general's (AG's) office, state (see the library, this web site - opens a new window) or county consumer protection agency and Better Business Bureau, both where the business opportunity promoter is based, and where you live to find out whether there is any record of unresolved complaints. While a complaint record may indicate questionable business practices, a lack of complaints doesn't necessarily mean that the promoter and the business opportunity don't have problems. Unscrupulous dealers often change names and locations to hide a history of complaints. MLM Watch Dog Ed. Note: This is good but not fast (busy phones frustrate Detectives) as we explained in the Investigation Due Diligence above!
•If the business opportunity involves selling products from well-known companies, call the legal department of the company whose merchandise would be promoted. Find out whether the business opportunity and its promoter are affiliated with the company. Ask whether the company has ever threatened trademark action against the business opportunity promoter. MLM Watch Dog Ed. Note: Good but not fast to do, even expert MLM Detectives have trouble getting the right phone numbers!
•Consult an attorney, accountant or other business advisor before you put any money down or sign any papers. Entering into a business opportunity can be costly, so it's best to have an expert check out the contract first. If the promoter requires a deposit, ask your attorney to establish an escrow account where the deposit can be maintained by a third party until you make the deal.
•Take your time. Promoters of fraudulent business opportunities are likely to use high-pressure sales tactics to get you to buy in. If the business opportunity is legitimate, it'll still be around when you're ready to decide.
Reporting Possible Fraud
If you suspect a business opportunity promotion is fraudulent, report it to:
•The state's attorney general office in the state where you live and also in the state where the business opportunity promoter is based. ATTORNEY GENERAL LINKS HERE •Your county or state consumer protection agency. Check the blue pages of the phone book under county and state government. •The Better Business Bureau in your area and the area where the promoter is based. •The FTC. File a complaint online at www.ftc.gov or call toll free 1-877-FTC-HELP (1-877-382-4357).
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