34 5 Questions to Ask in Every MLM Company


5 Questions to Ask in Every MLM CompanyThere are so many network-marketing companies today, some are decade-old, some are months-old. Often you'll hear that ABC company sells this, XYZ company uses a 123 binary system, DEF company is better than others, and the tireless marketing and branding efforts go on. 

While MLM or simply networking is a great business model, some people are still misinformed about it. 


Not surprisingly, many people still fall victim to some fly-by-night schemes. 

The sad reality is that these victims are proportional to the skeptics. Meaning, bad networking businesses fool the willing victims, while great MLM businesses meet skepticism. 

So to help educate people, the least I can do is to share the basic, if not the most fundamental aspects that an investor should consider for before saying I do to any MLM business.
 
1. They make their own products  
Most start-up MLM companies today offer a wide variety of products. Be it a detergent, a  diet powder, deodorant, diaper, e-load, herbal medicine, soap, supplements, etc. But is the business responsible for the production of the products it sells?
 
So how does the MLM business work?

The company that produces these products enters into an agreement with a network-marketing company that will allow the latter to exclusively sell the former's products. Therefore, the company cannot sell its own products to other markets, such as to drugstores and department stores. This is where network people comes in, offering you this
innovative product that you can only buy from them.

Manufacture own products

The problem surfaces after the agreement expires. Because if you're the company who founded, say a soap product, would you agree to exclusively license only 1 networking-company to sell your products for a lifetime? Of course you wouldn't. That's why such agreement will have its terms on how long would the deal or partnership be. And if both parties failed to renew their partnership, that's when the people who joined the business suffers. They no longer have an exclusive product to offer. So an MLM company should produce its own, which basically entitles the business to exclusively sell its own products for technically a lifetime.

So it would be wise for you to ask someone who's trying to recruit you this question: 
Do you create your own products?

If the answer is no, you have been warned.

2. They rely on product movement and not on recruitment
Now this calls for emphasis. If you're invited for a presentation and 70% of the time was used to explain how good the compensation system was and how rich you'll easily become simply by joining, man, you better run.

A sound MLM company would actually require its own members to use or buy the products on a regular, but efficient intervals.  Because it's the movement of products that will make the business thrive, and not the recruitment.
 
Product movement

Think of a grocery store. If you're the owner, you need to pay electricity and water bills, your cashiers and crews, pay taxes, etc. So what if there's little sales enough to cover your operating expenses? Your grocery would definitely close. The same holds true for any business, including network marketing. 

The best question to ask would be:
If recruitment of members is to be stopped today, would members still earn money?

3. You can use the product yourself
Good companies last because of good products. So if they can't offer you any product, why would you give them a reason to join? Because if you believe in the product, there would be no worries if you joined them and not be able to recruit someone, since the discount is already a bargain for you. 

Comsumable products
 
Ask yourself first,
Do I need the product for my family and myself?

4. Products are not ridiculously expensive
Given that the products they offer are exclusive, it would be reasonable for people to find the prices somewhat expensive especially since there would be no point of comparison (since products cannot be usually bought elsewhere). But to take advantage of this setup in order to ridiculously overprice the product, that's a no-no!

Marketable pricing

Question to ask:
Can my network afford the products?

5. Great culture and team-oriented value
There's no I in a networking model. Your network of people is what will keep you in the game. So take time to observe the culture and the team-value of the people asking you to join them. It might not be that relevant, but I'm pretty sure it's what will keep you moving forward. Hence, the word trust

Teamwork works
 
Allow me to ask you this: 
Are you confident that the person inviting you is not just after the commission or money they will get from you when you join?

Lastly, the business should be legal. While this one's a no-brainer, it's sad that many people are still struggling in pointing which is a scam and not. That's why many opportunities have passed by because we simply closed our mind and safely say No, that's a scam anyway! without minding to even do a research before jumping to a conclusion. 

Remember that any company can claim everything, including being the first and being the best. So be sure that what they tell you is *genuine* and comes from a legitimate third-party or an outside (non-affiliated) person or organization. Check the reliability of the source. 

Oh, and one more thing, don't trust those commercial endorsers! 

They were paid to lure you.

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34 comments :

  1. They all sing the same tune!! UNO., Royale , Amway, Herbalfe, vmobile, SWA -- ALL SCAMS!!! Yung
    nasa taas lang kumikita!!!!! diba??

    ReplyDelete
    Replies
    1. hindi naman po lahat. i think ung UNO nagsara na nga. pero yong royale is legit naman. not sure. hehe.

      Delete
    2. Excuse me??

      UNO is the first and still the best network-marketing business today, FYI. People
      seem to be careless on what they post. Do a research first!

      Delete
    3. AnonymousJune 13, 2014

      i agree! why not simply work and stop fooling others!

      Delete
    4. open your mind and educate yourself. we have millions of resources online like google.

      MLM is not perfect business but it is just BETTER than any form of businesses existing.

      "Formal education will make you a living. Self-education will make you a fortune." Jim Rohn

      https://facebook.com/nimrodgjoven
      https://twitter.com//nimrodgjoven

      Delete
  2. haha, lahat nalang kasi nilagyan ng gluta. hehe

    ReplyDelete
  3. Ano po yung masasabi mong pinaka magandang company na MLM for you? I know naman mdming mgnda pero what will you recommend?

    ReplyDelete
    Replies
    1. Supreme Wealth Alliance Corporation or SWA exists because we want transformation. The poor to be rich. The needy to be bountiful. The pessimists to be optimists. The hopeless to be hopeful. The timid to be bold. The receiver to be the giver. The impossible to be possible.

      Delete
    2. all MLM companies are OK.
      as you can see listed above is always mentioning about PRODUCTS.

      we cant tell exactly which MLM company is the best for you.

      it will might work for me but it wont work for you because of many factors to identify first.

      https://facebook.com/nimrodgjoven
      https://twitter.com//nimrodgjoven

      Delete
    3. I know AVON for years, and never disappoints its dealers :)

      Delete
  4. AIM global

    ReplyDelete
  5. Reply to the question: "Ano po yung masasabi mong pinaka magandang company na MLM for you? I know naman mdming mgnda pero what will you recommend?" - USANA

    ReplyDelete
    Replies
    1. AnonymousJuly 10, 2014

      yes, correct. Usana has all the criteria.

      Delete
  6. Go and do your homework before mentioning royale. Hindi lang po nasa taas ang yumayaman. 7 years na po ang royale 800 multi millionaires na po ang nacreate. Baka nmn nauna lang yan??? Eto pa nung feb 07 2014 another batch of 154 multi millionaires ang umakyat sa stage sa resorts world mga nahuli po yan. Another 100 plus pa ulit this coming 8th year namin. You can go to our own building sa quezon ave. Kami lang ang first na bumili ng sariling building sa gantong industry and we have 19 company owned branches..very legit. Ang magnda pa filipino owned ito.

    ReplyDelete
    Replies
    1. hmmmnn,, in that case malamang bagsak ang royale sa question #3 na "Do I need the product for my family and myself?" kailangan ba ng gluta2 sa buhay?? haha, paki, explain!

      Delete
    2. Royale? Wala naman kayo products! Puro frontal lang tapos during the discussion puro kotse at kitaan lang kaya nio explain di kayo more on products! u r just after recruitement!

      Delete
    3. Brix, care to explain your statement? Why no products?

      Delete
  7. Criteria 1 to 5 check... :) and since we're not after recruiting and indeed the product is good check nio po eto: https://www.facebook.com/AVAILhealthANDwealth makakatulong po sa kalusugan nio. Thanks po!

    ReplyDelete
    Replies
    1. AnonymousMay 15, 2014

      3. You can use the product yourself...panu po kung lalaki??? :p paki.explain lang din po....

      Delete
    2. why? are you her/their target market for this product?

      ive heared that they are using these pantiliners as shoes liners to reduce odor.

      men can use these liners if they have almoranas.

      https://facebook.com/nimrodgjoven
      https://twitter.com//nimrodgjoven

      Delete
    3. Mr. Anonymous I haven't seen your reply... Yes male can use this.... it can help curing almoranas and prevent prostate cancer... please check video testimonials thanks!

      Delete
  8. Forever FrontRow. Live your dreams with us, one happy FAMILY tayo here!!!

    ReplyDelete
    Replies
    1. Forever Frontrow? Is that new? Neve heard of that before.

      Delete
  9. i have a question..does being included or listed in DSAP means the business is legal or good and not a scam?

    ReplyDelete
    Replies
    1. YES and NO. Being listed in DSAP means the business is legit, but not being listed does not mean the business is a scam. So it basically doesn't make a difference or make sense to be listed in DSAP or Direct Selling Association of the Philippines. DSAP is simply an organization formed by representatives of some of the member companies themselves, so no actual regulation from the government happens (unlike in other countries where their government handles the regulation).

      Likewise, being registered to SEC or Securities and Exchange Commission does NOT guarantee the "stability" or "legitimacy" of the company because SEC registration is simply used to authorize "corporations" or to have several investors to co-own a business. Hence, this should not be a "permit" to sell a product, they'll need a BIR permit instead.

      Delete
  10. So how can one really differentiate an MLM from not being a scam with the top 5 questions that you have posted?

    When it comes to recruitment, I believe that you have done your research how the network marketing system works and asking the question if recruiting stops, no one will be earning because it is a scam?

    So how can one build a network using the network marketing system if people will keep on insisting that no to recruitment or sponsoring downlines, just plain selling because if there is a recruitment side to earn money aside from selling then it clearly is a scam?

    Work Very Hard for 4 years. Harder than you can imagine. Then do whatever you want for the rest of your life.

    ReplyDelete
  11. it will be a scam if theres no product involved or if theres a product then you have to ask yourself if is it salable or viable? of course, before you sell, you have to know your market.

    there are MLM companies where you NEED to reach on that level enable for you to be eligible for PASSIVE INCOME.

    network marketing is all about relationship. so building network takes a lot of effort. you cant recruit someone if hes not brave enough to come out of his comfort zone of learning entrepreneurship and leadership and doing it with action.

    our business here is to MOVE products and services.

    MLM, direct selling and network marketing is just a START of your journey to success.

    https://facebook.com/nimrodgjoven
    https://twitter.com//nimrodgjoven

    ReplyDelete
  12. There is a new networking being introduced to the market today namely the "planet mobile networking"? have you heard about it? is it a scam? well, they don't have their own product but they insisted that their product belongs to some companies including pepsi,kopiko, etc. i wonder if such company really do business with that new networking company?

    ReplyDelete
  13. Our MLM company is new in the Philippines but I am proud to say we "passed" all the questions above.

    I personally do not ask people to join our company, I ask them to use our product first.
    That's how confident I am with our product.

    ReplyDelete
  14. 5 Questions to Ask in Every MLM Company AND ROYALE'S ANSWERS.

    1. They make their own products - Yes.
    2. They rely on product movement and not on recruitment. - Yes.
    3. You can use the product yourself. Yes, in fact, I'm using most of the products. For the one who said, "Kailangan ba ang gluta sa buhay, you better do your research" because you really do. For starters, here's what WebMd says about glutathione: Glutathione is involved in many processes in the body, including tissue building and repair, making chemicals and proteins needed in the body, and for the immune system.
    4. Products are not ridiculously expensive. -Yes... and very effective. Anyway, if you demand excellence, you must be willing to pay for it.
    5. Great culture and team-oriented value. - A BIG YES.

    ReplyDelete
    Replies
    1. AnonymousJune 29, 2015

      5 Answers to ROYALE'S QUESTIONABLE ANSWERS:

      1. They make their own products - No, they just import raw materials and package here in the Philippines using a third-party company.

      2. They rely on product movement and not on recruitment. - Seriously?

      3. You can use the product yourself. Yes, GLUTA might be "needed". However, if you do your "research" correctly, GLUTA must be "taken" and not in form of soap, otherwise about only 5% would be the utilized, so you are just wasting your money on the process.

      4. Products are not ridiculously expensive. - Yes, 150% markup is NOT overpricing (yawn...)

      5. Great culture and team-oriented value. - Power!

      BONUS:

      6. They pay their tax obligations.

      #Powerrr!!!!

      Delete
  15. Is Emgoldex SCAM? Is GoldExtreme SCAM? Is HPI Scam? Is One Lightning SCAM? Yes, they are all aboslutely SCAMS!

    ReplyDelete
  16. much thanks to you for an awesome post. motu patlu

    ReplyDelete

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