Re: Can you review my MLM ?
Quote:
Originally Posted by
Latinstyle
Hello everybody,
New to this forum and following your reviews discretely for several years, I would like to launch my own MLM company.
However, I would like to do it legally and don't be the type of company that appears here most of the time. (Ponzis or pyramids schemes).
So before launching anything, I would like to ask you if it's possible to review my compensation plan in order to get a real feedback from all of you guys ?
If it's possible, where should i post it? "Online Opportunities" ? "MLM, Network Marketing and Pyramid Schemes" ?
Thanks for your help :RpS_wink:
You really need to be dealing with a MLM attorney to answer your questions if your MLM is legal or not. I can tell you that to be a legal MLM company in the U.S., your members/affiliates/distributors (whatever you want to call them) need to have 51% of their revenue from actual customers, meaning not from people in their downline. If over 50% comes from people signing up under them (referral commissions), and they receive a percentage of compensation for their purchases, you are operating illegally in the U.S. The key to a legal MLM is your compensation plan. This is where you really need legal counsel.
Since you do not state what countries you want to do business in, you need to know that in every country where you do business your company must be registered to do business, and must be in compliance with their MLM laws. There are just too many unknowns and laws to accurately answer your questions; and that's why you need a MLM attorney. I would highly recommend that you stay away from auto-ship, especially if you are going to be doing business in the U.S. Just my 2-cents worth.
But I must ask you why a MLM business? It is the worst form of business model there is. Add in that to start and launch a MLM company requires an exorbitant amount of money. Your start up expenses alone could run you into the tens of millions of dollars and that's before you launch and have made a dime. Unless you are entering a totally new industry where you have no competition, you might be able to get started for under $10 Million. I could list at least 100 issues and situations that you need to address to start, but hopefully you have had wise counsel in knowing what all of them are. I speak from having been a business consultant for more than 20 years, and have worked with startups to mature companies.
Re: Can you review my MLM ?
As the MLM owner, would you rather one person buy from you who sells retail to "say one" for his profit, or one person who buys from you, sells to one, who recruits others who buy from you who sells to one, who recruits others who buy from you who sells to one?
Answer that question and you will have your answer.
I'm being sincere and not antagonist regarding your question, but MLM is inherently flawed. See my question.
Your goal as the MLM owner will be to get as many recruits as possible vs. one with one customer ending the chain.
The retail customer ends with that one sale AND you make the same amount of money. As the owner, you should want recruits especially since your product isn't on shelves or advertised traditionally.
=Pyramid scheme especially from the founder's goals perspective.
Re: Can you review my MLM ?
Quote:
Originally Posted by
Latinstyle
So before launching anything, I would like to ask you if it's possible to review my compensation plan in order to get a real feedback from all of you guys ?
I think if you have to ask about your compensation plan you already have a problem. If you have a product/service why would you not hire salespeople on commission to sell it? Why not set up a website or use something like Amazon/EBAY and go direct to the consumer?
The only reason I can come up with that you would go straight to MLM is if the product/service has no retail market outside the "opportunity".
Re: Can you review my MLM ?
While it was nice of you to ask us to review your MLM program and give advice on your compensation plan, that is not what RS is all about. We do not give advice about a compensation plan before a MLM launches as none of us would take on the responsibility and liability of doing so. That's why I said you need a good MLM attorney, and the best is Kevin Thompson.
Launch and then we will make comments about your compensation plan. But then you might not like what we have to say about it.
Re: Can you review my MLM ?
If you must utilize an MLM compensation plan, the product must not be much...!
