How to Protect Your Investment in Network Marketing
How to immunize your business from recession, attrition, company failure and distributor termination.
Would you invest thousands in one company that inconsistently yields less than 1% return on your investment? Would you consider that a good return? The rich don’t think that way! Neither should you! Isn’t that why we are advised to diversity our investments? Never put all your eggs in one basket!
If you’ve ever invested in stocks or mutual funds and such, you know that it’s extremely important to diversify your portfolio. Why? Because, it is the best way to protect yourself and your money. Should one company fail to live up to expectations, you minimize your losses. Don’t think your network marketing company will fail you?
Distributors Rights Association is dedicated to defending MLM distributors from unfair tactics used against them by their network marketing company. It logs and displays the more recent incidents of MLM distributor suspensions, terminations, and fraud within the industry. There are lawyers who specialize in these cases and they are kept very busy. In fact, the most common incidents are:
· Distributor suspension. The MLM company will suspend all income from a distributor while it considers as to whether or not any rules have been broken. However, D.R.A. has noted a growing trend among floundering MLM companies to use this tactic against their top distributors and “buffer up their coffers.”
· Distributor "vulterous" termination is another common complaint. Let’s say your doing very well and moving up the ranks of your MLM company. In fact, your doing better than your upline (not surprising when using the Internet to build your business). DRA has recorded cases of false allegation against another distributor who has much to gain by their termination. Most often, the company does not do a thorough check of their own and will all too quickly terminate the accused and the distributor loses all contact information with his/her downline. The accuser on the other hand, inherits the accused’s downline and all the income generated from it.
· Similarly, there are recorded incidents of top selling distributors suddenly cut-off from the company and their downline for the sake of the many. Failing MLM companies will often change their commission plans and rules to making it almost impossible for top earners to qualify.
So how can you protect yourself? Diversify.
For network marketers, the question is not "how can I become a top tier network marketer?" Think of your network marketing business as just an extension of your online business. Instead, ask yourself, "How can I use Network Marketing as another income stream for my business."
Take your efforts online. Start an online business of your own with multiple streams of income, including your network marketing’s products/services. Don’t put all your eggs in one basket. Consider your MLM as only one of several sources of income.
There are many ways to successful build an income stream using the net including information marketing, affiliate marketing, selling digital and hard goods, selling advertising space, and many others. Home Based Businesses Info provides entrepreneurs with great ways to build an online business. Visit this site to see the many ways you can make money online.
Having your own online business and diversifying by creating multiple streams of traffic will protect your contact list, your efforts, your growing revenue and income stream and is something you can pass along to your children in the long run. Did you know that in most MLM companies, a distributor’s downline cannot be inherited by their children? They too will have to start from scratch.
Don’t take this unnecessary risk. Take the necessary steps to protect yourself, your business and your family’s future first. Read Your MLM Biz Online to get started.