| So many people ask the same question: Is Multi-level | | | | Office, there is someone to answer the phone as |
| Marketing a REAL Business? Is it truly a business that | | | | well.And the MLM business should also have an email |
| can produce a living and income? Is it a REAL | | | | system that is watched, and taken care of, on a |
| distribution business? It is a business that operates | | | | daily basis. This is not only for the distributor base, |
| for the customer's satisfaction, and always looks to | | | | but also the customers and public as well.5) Does the |
| gain new customers?Here is the answer: YES.How | | | | MLM Business have the needed business licenses and |
| and why does it qualify as a business? Every | | | | legal structure to do business in the states and |
| business has certain traits and functions that are | | | | countries they operate in?Answer: Yes.All MLM |
| needed to do business and stay in business. We have | | | | Businesses that have been in business for any |
| developed what we call the "7 Business Factors | | | | amount of time, must have the needed legal |
| Test", and you have to ask these questions to see if | | | | structure and licenses to operate in every state. If |
| it qualifies as a business. All businesses, no matter | | | | they do not, they will eventually be forced to cease |
| whether it is a traditional business or a non-traditional | | | | doing business in that state. And most MLM |
| business, (such as MLM), answer these questions in | | | | Businesses have some form of a corporate structure |
| the affirmative.What are the "7 Business Factors | | | | that the company operates under. That could include |
| Test" Questions?1) Does the MLM Business distribute | | | | being a C Corporation, an LLC, or a Sub S |
| goods and services of some type?Answer: Yes.In | | | | Corporation.Even MLM distributor needs a business |
| MLM, there are goods and services that are | | | | license to do business in their city, so they will not be |
| distributed through personal distribution methods, and | | | | penalized if they do not have one and are caught.6) |
| they are distributed directly to the customer, with no | | | | Does the MLM business operate on a FOR PROFIT |
| middle man. These goods and services can be | | | | basis?Every successful business structure, traditional |
| manufactured by the MLM company, but usually are | | | | or non-traditional, should operate on a FOR PROFIT |
| not. The goods and services many times are | | | | basis. Even the MLM distributor needs to operate on |
| manufactured by an outside source, and then shipped | | | | a FOR PROFIT basis. If the MLM business does not |
| by the MLM Business to the customer or distributor. | | | | operate in a profit mode, and loses money |
| Then the distributor can take the goods, and re-sell | | | | continually, the MLM business will not be in business |
| them to their customers as well.2) Does the MLM | | | | for that long.It is the same way for the MLM |
| Business have an official Office, headquarters, or | | | | distributor. If the distributor does not make any |
| structure that the business is operated out of, and | | | | money, then they will not stay in business long.7) |
| with an address of some type?Answer: Yes.All MLM | | | | Does the MLM business perform all of the needed |
| businesses should have some kind of office or | | | | business functions to increase business, including |
| headquarters that the goods are shipped from, or at | | | | marketing, promotion, campaigns, running specials, |
| least in charge of the shipments getting to the | | | | advertising tools, customer service, brand extensions, |
| customer. This does not have to be a fancy office, | | | | research and development, direct marketing, |
| but one that can get all the tasks needed to run the | | | | increasing brand awareness, and keeping their |
| business done in a timely fashion. They should have a | | | | vendors at an honest price?Answer: Yes.Every MLM |
| visible address on all communication.The distributor's | | | | business operates to increase business, using all of |
| business is usually operated out of the home, and | | | | the functions mentioned, and more. Even the MLM |
| that counts as a structure that the home business is | | | | distributor needs to perform some of those |
| housed.3) Is there an accounting structure that is set | | | | functions, to increase their own business in their |
| up to run the business effectively and legally?Answer: | | | | marketplace. These are functions any business needs |
| Yes.All MLM businesses should have an accounting | | | | to do, in order to stay in business, and enlarge it's |
| function and people set up to handle all business | | | | operating capacity.Yes, an MLM Business is a TRUE |
| transactions. They not only keep the books for the | | | | business that operates to service the customer's |
| MLM Business itself, but also the MLM distributor as | | | | needs, bring products and services to the |
| well. The MLM Business from the home should have | | | | marketplace, and show a profit at the end of the |
| some form of an accounting system, for tax | | | | year.MLM or Multi-level Marketing, has passed the "7 |
| purposes, and for profit and loss statements. | | | | Business Factors Test." If an MLM Business you are |
| Accounting also helps keep the Company and | | | | considering does not answer all of the above |
| distributor aware of the health of the business and | | | | questions YES, then you may want to consider |
| how it is doing, or not doing.4) Does the MLM | | | | seeking another MLM company that can pass this |
| Business have easy communication to get a hold of | | | | test as a Multi-level Marketing business.blessings...doug |
| someone if needed?Answer: Yes.Communication is | | | | (c) 2005/ all rights reservedPassionFire Intl Firebaugh |
| the lifeblood of any business, and MLM is no | | | | is one of the top Network Marketing Trainers in the |
| exception. MLM Businesses usually not only have an | | | | world. Over a million people a month |
| order line, and a distributor line, but a general public | | | | read his training ezine. He spent the last 7 years |
| telephone number that the public can get in touch | | | | traveling the world speaking and training as an MLM |
| with them as well. Usually at the MLM Business | | | | Trainer on Success. |