SIMPLE DUE DILIGENCE INVESTIGATIONS TO AVOID GRIEF BEFORE YOU JOIN
A “SUPPOSED” MLM or NETWORKING COMPANY!

MLMWatchDog report:

1. Are your new friends asking you to spend more than $500?  Here is the truth 22 states say over $500 they have to be registered as a BUSINESS OPPORTUNITY SELLER.  The 23rd State says over $200!  Are your new friends crooked?  NO… But not painfully truthful they make more money by selling you a higher end product package.  ASK… what is the least I can join for?  You may find out that it is $29.95 to $$49.95 the price of a Distributor Kit.  Can you make a small order to test the products?  Yes!

2. SIMPLEST MLM INVESTIGATION: LOOK AT THEIR WEBSITE!.  First suspect clue would be no street or city address, worse yet, only an email address, no phone number. Then look for the pictures and names of the owners of the company.  Not having these on a website is a quick absolute reason NOT to join.  Some wise, seasoned MLM distributors doing their Due Diligence Investigation will use “http://earth.google.com/” to look at a satellite picture of the size and location of a supposed MLM Company office. Address = trailer house or home? Run!!!!! – NEW FOR 2009 – 2010 Google Maps Street view http://maps.google.com/help/maps/streetview/ Your Editor was checking out a so called “scietific expert” for a scam.  His place of business was a used car lot!

3.  GIFTING PROGRAMS…. RUN FROM A COMPANY TAKING ONLY BANK WIRES, MONEY ORDERS OR CHECKS: Use your MLM Detective Investigative “BRAIN.” Only use a credit card that will accept charge backs.  Returns? Honest companies allow refunds within 60-90 days (8 states require a year)! Money by Fedex – UPS only?  Yikes! Scam Time! A trained MLM Detective will tell you the scam artists do this to avoid Postal Fraud charges!   A PMB (private mail box) address is an indicator of dodging Postal Fraud Investigators = 911 run a SCAM Gifting Scams are famous for this!

4. EASY MLM INVESTIGATION TRICKS: Next MLM Detectives will go to the Internet and enter the following into one or two of the major search engines:

A. The MLM Company’s name (owners too) and the word “scam”. Go through two pages!  Look for  forum message comments for legitimate complaints (see D below).

B. Then do the same for “complaints, lawsuits, and news articles archived on search engines.

C. Also check who registered the website domain of any new company claiming:  amazing, incredible, proprietary, never seen before in the universe, revolutionary, products, services or technologies! Check http://www.whois.net/ for the domain lookup. Companies with good offerings would register a name 6 months to a year ahead of time.

D. A warning on MLM due diligence for MLM Researchers!  There are sad sites and forums that are unfairly negative toward all MLM – Network Marketing companies.  Ignore these “Anti -MLM Zealots” and only look for appropriate information. A good MLM Detective will ignore 99% of their B.s.!

E. Explanation The good investigative sites…will find a Quote back to the MLM Watchdog… or The MLM WatchDog Detective…  err Where you are now!

5. A SECRET DUE DILIGENCE TOOL: Compete.com can give you Internet Web Ranking Due Diligence that on 1 out of 10,000 know about.  Grab scammersters by the throat when they come to pester you!

http://www.mlmwatchdog.com/mlm_due_dilligence_COMPETE.COM

6. REPEAT DON’T SPEND OVER $500 TO START AGAIN: There are over 22 states that require registration if an opportunity (not just MLM but includes MLM) requires you to spend over $500.  Two states say it must be kept under $200.  If a company says join for free and spent $501 for product – They had better be Registered!  A good MLM Detective will run if there is no way to join for under $500 See the new FTC warning (below) this MLM Detective due diligence article and my notes on the $500! SCAM example -Thinking it was MLM Here is a list by the FTC of States requiring “Biz Opp” registrations.  Remember this if a recruiter is hustling you for $over $500 an no registrations.  Why join?  They may get shutdown for not having the  state Business Opportunity  registrations! Why risk joining? You can lose time and money! There goes your opportunity! http://www.ftc.gov/bcp/franchise/netbusop.shtm

6.  A LOT OF NUTRITIONAL PRODUCT HYPE – Raise the dead? Live 130 years? Cure Cancer (which is an illegal claim for any nutritional)! If not a nutritional skip down to next due diligence for MLM Detectives.

A. Get a list of the MOST critical ingredients in the MLM’s nutritional product and put them beside your computer.

B. Go to the U.S. Government National Institutes of Health nutritional research website PUB MED.  Go to Pub Med after you read the next two sentences! http://www.ncbi.nlm.nih.gov/sites/entrez

C. Look up the major ingredient(s) by entering its name in the search box.

D. Read through the scientific studies.  Some may be complex, but the END sentence usually gives you a good idea if the study was a Plus or Minus for the product. Read over at least 10 articles use a piece of paper to keep track of studies like this Study #1 Good   Study #2 good   #3 What did they say? (or just What?) Study #4 Good  Study #5 Bad.   Make your own judgement!

7. NEXT MLM DETECTIVE DUE DILLIGENGE RESEARCH: MLM Detective “PUSHBUTTON” Go to the Better Business Bureau website for the city where the MLM-Network Marketing Company is located.  Most are free.  You are looking for the number of complaints the BBB has NOT resolved. If there are over 2-4, hold off joining, it very well could mean problems.  MLM Detectives don’t overly trust BBB reports but we the can be good  indicators.  Here is the National BBB Advanced Search -  don’t use the quick search. http://search.bbb.org/SearchForm.aspx?mode=Business

8. WATCHOUT FOR: An email solicits you to a “HOT” MLM, Party Plan or Network Marketing Company!

A. Look for exclamation marks and capital letters used to lend legitimacy or urgency!  Beware of disclaimers such as “this is not a pyramid selling scheme or scam” (legitimate offers don’t contain such claims). Don’t believe promises of fast wealth.

B.  If you feel, see or hear “Get Rich Quick!” Run! If it sounds too good to be true, it usually is! MLM – Network Marketing takes some work, like any good Home Based Business.

I’ve joined companies with binary pay plans before. At the time, I had no idea what the difference is between a binary, a matrix, a unilevel and a stair-step breakaway.

It all looked the same to me. The company website had all the bells and whistles necessary for me to succeed. All they had to tell me was that they had ”the absolute best compensation plan in the industry along with the greatest product” . I was in! I mean, what else would I need?
The company was the best. How did I know for sure? Because the guy that recruited me told me so.
And then I went to the website… WOW! Such pretty colors. And look at that beautiful million dollar home in the corner…oh… look at the happy family in front of it… look at the Mercedes they got. I can get that too but ONLY if I join today!  Why today? Because the guy said I must get in NOW!

Now let me tell you a little story. I hope this will help you become a critical thinker early on…
Become a critical thinker before you’ve spent years building a house of cards and before the big ”CEO” does a simple ”Puffffffffff…..!!!!!”…. and it’s ALL gone!

I have a good friend that was the highest income earner in a well known company with a binary pay plan. His check replaced his income early on, he put in 14 hour days, he earned more and more money. After over 5 years with the company, with a downline of almost 250000 people his check started getting smaller and smaller.

Hmmmm. Binary creep anyone?
What is a binary creep? Now it starts making sense. The company is paying out too much money. They are in financial trouble. They did not know ANYTHING about compensation plans. They need money because the company is falling part.
Where are they going to take money from? They’ll take it from top income earners of course….And some from the little guy that just started. He won’t notice…he’s too excited that he just made his first $30 this month. He was pretty sure the check will be $40, but $30 will do just fine for now. No big deal, there must be some problems in the downline and there is no way to tell.
You know how that goes…how can you keep track of everything that’s going on in your downline? The owner is so so so honest, he cares so much about you, he would not take a $10 bill away from you…Or would he?

Rod Cook has a great explanation for the binary creep and what the binaries do eventually to distributors.
Read this excerpt from his article:

Binary Creep Kills Companies:

No Customer excess sales volume – No Binary stabilization. Binary Creep – After 20,000 or more people join a Binary pay plan it begins to start pay out too much, if no Binary experts, joined the company. If a large number of Binary experts join early excessive payouts start earlier. The company sees the fluctuations in payouts go over the amount they can afford to pay. This is called “Binary Creep.” There is not a Binary of any age or size that has not gone through this. At 60,000 people (without a lot of Binary experts) it becomes critical and the one or all of the following has to take place:

1. The high earners at the top of the Binary have to have “Caps” put on the amount of cycles they can collect or the amount paid on their top end earning cycles have to be diminished by a variable formula. Top earners are not happy about this, they leave!

2. Everybody in the Binary has to be penalized by “Pooling.” That means that the total allowable % of payout is put into a pool and the number of distributors generating matching commission pay points are divided into it. That drops the amount of everybody’s checks and usually starts the decline of the company.

3. The products or services sold in the Binary have to have a CV (commissionable volume) reduction put on them. Other wise if a product sold for $20 in a new Binary that amount would be put into the Binary for payouts. After CV (sometimes called BV or Bonus Volume) the product still sells for $20 put only $15 goes into the Binary for pay purposes.

To learn more about the Binary Creep and what can happen to a business with a binary comp plan listen to this recorded call HERE.

Well, now I know why my friends check went from $130/day to $10/day in a matter of weeks.
How about your check? Are you willing to put 6 years into a business that can fall down like a house of cards ?

To save years of failure and frustration read this free report today! If not today, you might remember about it in 6 years when you are back to square one.

What is the real reason why your business does not work?
Assuming you did your due diligence and chose the right vehicle, here is some help from Tom Big Al Schreiter on moving forward and making your business work for you.

Remember that Big Al has a great sense of humor.

This #!*@! business doesn’t work!!!

My new distributor was complaining: “This #!*@! business doesn’t work!!!”

And my new distributor was right. The business doesn’t work.

So I had to tell the new distributor a story.

* * * * * * * * * * * * * * * * * * * * * *
You look for the best car for you, and you purchase the car.

Then, you never learned how to drive your car.

You never take driving lessons, you never go out driving with your parents, you never read the owner’s manual. You don’t know what the pedals are like on the floor or where to put the key into the ignition.

You only made a few attempts at “trial and error” . . . you yelled at your car and said,

“Drive! Drive!”

And your car didn’t drive itself.

So now you looked for a network marketing business that is good for you.

You purchased the business and joined.

But you never learned how to make your business work.

You only made a few attempts at “trial and error” . . . you said the wrong words to a few friends and two cold leads.

And your business didn’t build itself. Your business didn’t work.

* You didn’t come to Saturday trainings.

* You didn’t do three-way calls with your sponsor.

* You didn’t listen to my training CDs.

* You didn’t come with your sponsor when your sponsor went prospecting.

* You didn’t learn how to give a “One-Minute Presentation.”

* You didn’t learn “SuperClosing” or any closing.

* You didn’t learn about the “Colors” – the four different personalities and how to talk to them.

* You didn’t learn any effective “Ice Breakers” or openings.

* You didn’t learn how to get prospects to beg you for presentations.

* You didn’t learn any effective first sentences.

* You didn’t learn how prospects make decisions in their minds.

* You didn’t learn how to get unlimited appointments.

* You didn’t learn how to stop sounding like a sleazy salesman.

* You didn’t learn any of the “sequences of words” to communicate directly with the prospects.

* You didn’t learn how to use the differences between needs and wants.

* You didn’t learn where and how to locate the best prospects.

* You didn’t learn how to create prospects instantly on demand with effective sentences.

* You didn’t learn the sequences of words top leaders use.

* You didn’t learn how to open a presentation.

* You didn’t learn how to build instant rapport with anyone.

* You didn’t learn how to use word pictures.

* You didn’t learn how to talk directly to the subconscious mind of the prospect.

* You didn’t learn why prospects tell you “No” when they should be agreeing with you.

* You didn’t learn the first things you must say to cold prospects.

* You didn’t learn how to locate and create leaders.

* You didn’t learn why goal-setting doesn’t work.

* You didn’t learn how to motivate people.

* You didn’t learn how to get your prospects’ unconscious minds to work for them.

* You didn’t learn how to use stories to bypass the two mind filters of prospects.

* You didn’t learn how to quickly capture your prospects’ imagination and attention.

* You didn’t learn how to . . .

So stop blaming the business.

The business doesn’t work.

You work.

Don’t blame the “stupid” prospects, the weather, the economy, the product pricing, the compensation plan or your sponsor.

If you want to drive the new car you purchased – learn to drive.

The end.

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Click HERE to download your free business-life changing report!

Are you still trying to make $2 by reading your 80 year old neighbors license plate?

Why is the license plate reading ”opportunity” doomed to fail?

Well, here is just one of the reasons:
Police already has the technology to read thousands of license plates an hour.
NYC police read 90,000 plates a day from patrol cars using ANPR!

Stationary Automatic License Plate Recognition Systems (ALPR) are common throughout the industrialized world. However, a new mobile Automatic License Plate Recognition System is now available in British Columbia

This system can capture up to 3,000 license plates per hour. It has three cameras mounted outside the police vehicle.

* Front left side
This camera is used to capture license plates of oncoming vehicles.
* Front right side
This camera is used to capture license plates of cars in the right-hand lane (on a four or more lane road), as well as cars parked on the right side of the road.
* Rear right-angle camera
This camera captures the license plates of parked cars in a parking lot.

Also, look at what’s available for $2800 .

If you are to choose a technology based opportunity you better think twice and you better be ahead of the technology wave.
It’s moving very fast and it’s very hard to stay ahead of it.

Also, what is to be strongly taken into consideration is that license plates are the property of the state not the owner.

So I would check the state law before giving away a license plate for profit.
If you choose not to do so, you might just become Bubba’s roommate. Wanna see Bubba? Click here

If you looked at Bubba , you might want to read this free e-book next.
Who knows? You might become one of the people that saves years of failure and frustration.