Yoli Founder Daren Falter suggests “Choosing an MLM? Ask the Tough Questions.”
Company Leadership-Who is your Business Partner
Part III: Scrutinizing MLMs – Ask The Tough Questions
By Daren C. Falter
Another Perfect MLM Deal
One of the most important things to remember when looking at a company is to not get emotionally wrapped up in the company’s product, founders, or story until you’ve really scrutinized it first. Before you look at this company through rose-colored glasses, look at the company with a skeptical eye. You need to find out what is hiding behind the curtain. Ask the tough questions so you can find all the skeletons in their closet before it’s too late.
As I investigate MLMs, I’m constantly hearing statements from distributors such as, “Our corporate president, Mr. Peter P. Perfect, graduated from Prestige University with honors and then launched Credibility Corporation, which he took to $100 million in five years. Two years later, he built Incredible Incorporated, which was also a huge success. Now Mr. Perfect is just starting Big Launch Limited. We’re already a member of the Better Business Bureau, and we’ve been honored as company of the year at our local Chamber of Commerce. Our head scientist, who has formulated all of our products, was formerly nominated for a Nobel Prize. He has three patents and has written five books.”
Now this story, minus the bogus names, is typical of stories I hear all the time when being pitched on a new company. This could be the start of another legendary network marketing company. However, it could also be a disaster waiting to happen. Before proceeding with my breakdown, can you spot some of the inconsistencies and red flags in the content of the story? What concerns do you need to follow up on? What questions need answering?
Asking the tough questions
I’d start out by asking questions like, “Did Mr. Perfect really go to Prestige University, and did he really graduate with honors?” Then check it out. You’d be surprised how many people I’ve caught being dishonest about their education. Next I’d ask about the other two companies Mr. Prestige had launched like, “What happened to these companies? Did they go out of business? Were they sold, and if so, why? If Mr. Prestige started three companies, will he start a fourth company in a few years? If so, what will happen to Big Launch Limited?” You’ve really got to get to the bottom of this before falling in love with this program.
Another thing to consider is that some honors and accolades are not necessarily good. For example, to be listed with the Better Business Bureau may simply mean that you have had complaints registered with them. The BBB is simply an organization that registers complaints. Yes, they have membership and anyone can join for a fee. Being honored at your local Chamber of Commerce may mean that you’re very involved with your local community, or it may mean you donated a bunch of free product to their annual fund-raising auction. Or maybe Mr. Perfect went to school with Mrs. Popular, the current Chamber president. By the way, anyone can write a book, register a patent, and be nominated for a Nobel Prize. Yes, it shows some discipline to have done some of these things, but it is not necessarily an indicator of the character necessary to lead a major company. I’m not saying that everyone out there is lying about their credentials or embellishing the facts. I am saying, verify, verify, verify. Ask the tough questions so you can gather all the facts.
Start an investigation of your chosen company by interviewing founders, vendors, and top distributors. Although the executives of any top company are extremely busy, they’re generally always open to scheduling phone or in-person interviews with prospective distributors, especially if you make it known that you’re planning on making a very serious commitment to your new company of choice. If I’m looking at a new company, I’ll always travel to the company headquarters to meet the founders in person. This is critical for those who plan on making network marketing their career.
Here are some of the things you’ll want to find out in your investigation. Is the company timely on its payments? Has the company applied for credit? Was credit denied? Is the company having any financial problems? Is the company going through any lawsuits? Is the company keeping anything from the public? How long has the person you’re interviewing been associated with the company? How many companies has the person you’re interviewing been associated with and at what times? Create a simple timeline. Look for patterns of disloyalty or the constant changing of companies and titles.
An Ounce of Prevention
No matter how much success, power, and leverage a network marketing company accumulates during hyper-growth, it will always be small potatoes compared to the regulatory bodies that watch over the network marketing industry. Some corporate owners I know let the explosive growth of their companies go to their head. Instead of starting and maintaining a legal compliance department, the start thinking about running for President, buying private islands for distributor retreats, and bucking the legal system. But know this, no network marketing or direct sales company is above the law. Furthermore, companies that are going to last must learn how to work with the government, not fight against it. Here are some guidelines on how to know if the company you’re investigating is legitimate and if they’re compliant with the laws that govern network marketing.
About the Author
Daren C. Falter is the author of the network marketing industry-wide best seller How to Select a Network Marketing Company. Daren has been a consultant to the network marketing industry for over 12 years and a student and participant for over 20 years. Daren has built downline organizations into the tens of thousands of distributors with several different companies. Daren is a popular convention speaker and trainer. You can visit Daren online at his blog at www.networkmarketingreview.com. You can also order Daren’s best-selling MLM book at www.networkmarketingbook.com.
Daren recently launched a new network marketing company, Yoli, Inc., near Salt Lake City, Utah. Daren and his four partners are excited to introduced the worlds most nutritious beverage using patented BlastCap™ Technology. For more information about Blast Cap Technology, Blast Caps, or Yoli, visit Yoli at www.prelaunchinsider.com.
Copyright ©2009 DC Falter Marketing, Inc. ALL RIGHTS RESERVED
ATTENTION: Breaking News!
Daren Falter will be launching a new company called Yoli. We will be introducing an incredible new nutritional formula in the form of a delicious functional beverage using Mikel Anderson’s patented Blast Cap Technology. The founders of Yoli are Robby Fender, Daren Falter, Rick Eisele, Corey Citron, and Michael Prichard. To find out more about Yoli Blast Cap Technology, visit www.prelaunchinsider.com
Kingsley Ennis is one of the few “hand selected” FOUNDING DISTRIBUTORS that are helping to launch this new company … and you can join him and one of the fastest growing teams in all of Yoli at the very beginning of this great network marketing adventure!
With a background in the Seminar Industry and 12 years of Noteworthy Success in Network Marketing Kingsley is the Author of “Split Second Marketing” & “Your Extreme Advantage”. You can listen to them FREE at www.usahomebusinessexperts.com
QUESTIONS ABOUT YOLI? Email kingsley@goyoli.com or call 717-303-5710.
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