Do MLM Companies Cook the Books!?

Enron was a publicly-traded company, subject to SEC rules and regulations ... yet, they STILL cooked the books. Same for Worldcom. If you can't really trust the information released in legal documents put out by publicly traded companies, how much stock can you put in the self-serving promotional statments put out by OTHER companies?

MLM companies, for instance, give out totally ridiculous numbers about sales and retention rates and the amounts being made by distributors. It's a mistake to give any credence to what they say. No doubt some of them tell the truth. But many don't. When a company quotes "retention rate," there are a hundred different ways to figure retention rate. A company can just choose the method that gives the result they like best.

The only sane action for you is to choose a company based on results that YOU can see or that YOU can actually verify. When you dedicate your life to building your business with a company, you should actually interview a number of distributors with that company and ask about the work they do and the system they use and their actual earnings. You owe it to yourself to take any company-published promotion with a grain of salt.

You would never take a salaried job without knowing how much you're going to be paid per hour or per week or per month. That would probably be your number 1 or number 2 question. That's why it's so surprising how many people start an MLM business without knowing the answer to that question. They know how much they WANT, but they usually have no idea what kind of production it will take to produce the income they want. It's pretty easy to come up with the numbers, so there's no reason not to do it.

If it’s $10,000 per month, you will need a certain sales volume in your business. Ask how much volume that takes. Let's call that X.

Next, you need to find out what the average volume per current distributor is. Some people are on autoship, some people don't order. What is the actual average monthly volume per distributor? Let's call that Y.

Just divide X by Y to know how many people you need in your business to make the income you want. If you need 400 reps to achieve $10,000 a month, you can plan how to do that. If it takes 3,000 distributors to make $10,000 a month, then you'll need a different plan. You've got to start out knowing how many reps you will need.

A lot of people frustrated with lack of MLM success have found these ideas very useful. One of the best solutions to network marketing frustration is the ebook "Success In 10 Steps" by Michael Dlouhy. The author covers some of the biggest problems people have in trying to start their own successful business, and how to solve those problems. Fifteen years ago, Dlouhy joined over 100 MLMs and studied & cataloged all their rep packs and recruiting tactics and compensation plans and training, along with his own results. He talked to a lot of different people from a lot of different companies. In "Success In 10 Steps", you'll learn all the common MLM knowledge that is completely unworkable. Plus, you find out exactly what does work. You'll find it very useful if you're in the business.

You can get a free copy of the classic “Success In 10 Steps” ebook at my website.

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