MLM Scams, Pyramids, Ponzi Schemes, Fads and Just Plain Bad Business Practices

I had a revealing conversation with a Network Engineer a few days ago. He tried to convince me of three things. First, he said he is an entrepreneur. It turned out that he is an employee who has never started a business. He’d traded his time (working for free) as a network administrator for a 1% equity interest in a startup that didn’t start. Second, he said he is an expert in networks, franchises and business ownership. Having never started or owned a successful traditional business, network or franchise, his ideas were at best uninformed opinions. He had no first hand knowledge and no expertise as an entrepreneur. He had lots of ideas but no facts. Third, he explained that he had data why networking doesn’t work. When I asked for the data and his sources, it turned out he had read up on franchising and assumed the industries were the same. An incorrect assumption.

 

Just because someone thought it or felt it doesn’t make it true. Just because someone has an idea or an opinion doesn’t make it true. Even if someone looks at ALL the REAL data (which most never do) certainly doesn’t mean their interpretation is correct, valid or not twisted by limiting beliefs and personal agendas.

 

I am always shocked at how poor most people’s discernment is. The first business I looked at, I did my “research”.  What a joke. I surveyed employees and self-employed people that had no success at leveraging good franchising systems and creating residual income. Today people “Google” something and wrongfully assume that what they read is true. Others read the opinions of people that failed at something and now have the time to write negative articles or blogs about the businesses they didn’t build or school they didn’t complete or job they were fired from. The questions to ask: Are they speaking the truth and or just spewing their own opinions? Defending a poor work ethic? Protecting an ego? Blaming others for an unwillingness to learn?

 

How sad it is that our society surveys the opinions of others who have no success in an area and, by doing so, limit their own futures by accepting the fears and doubts of others as reality.

 

Let’s get into reality.

– If you have the courage to lead and finish!

FADS:

Is it something everybody will have in the next 2-5 years? Is it based on a hero product? Weight Loss? Water Quality? A Limited Nutritional Line? Launching a new currency? Services the company doesn’t own the rights to? Something that will be in Costco in the next 5 years? A luxury that people stop buying in a bad economy?

 

POOR COMPANY PLANS:

– Crowd Funding?

– Let the Network do the advertising, then put the product in Retail stores and close the Network.

– The Owners create an IPO and sell the Network when it gets big enough.

– The Owners are underfunded or inexperienced and freak out & quit when it gets tough.

 

BAD MARKETING:

– Defame the competition?

– High Pressure Closes?

– Big Startup Costs?

– Buy in at Higher Levels?

 

WEAK COMPENSATION PLANS:

– Owners make the vast majority of profits?

– Signup Bonuses with little residual (very common).

– Super inflated pricing? (Captive Audience)

– Contract You have no say in? (They own you)

 

WRONG SUPPORT SYSTEMS – WHAT DO THEY TEACH?

– Sign people up on Your Mom’s credit card

– Hold a Spot to sell later

– Get Rich at home

– You don’t need to learn or grow

– Do it your way (don’t duplicate what works)

 

TRYING TO BUY TALENT – MASTER DISTRIBUTORS:

– People try to sell leads, sell their downline, sell a downline they lured away from someone else, get signing bonuses, or get a beneficial position. All things they didn’t earn (but will take credit for).

– Very few people have built a large team (1000 to 100,000 people) on their own efforts.

 

FRUIT CHECK: WHAT ARE YOUR RESULTS?

– If You have 1 Team chances are You didn’t do it (you’re not the leader)

– If You have 2 Teams You might have done it (you could be the leader)

– If You have 3 Big Teams, It’s YOU, You did it (You are a Leader)

 

AT THE END OF THE DAY YOU CAN WORK WITH NICE PEOPLE:

– That don’t finish – You lose.

– That can’t do math – You lose.

– That are weak under stress – You lose.

– That have poor discernment – You lose.

– That are ego driven – You lose.

– That see people as a benefit to themselves – You lose.

– That are Super Talented w/ a poor system – You still lose.

 

Many businesses have systems. That doesn’t mean the system works or creates a real residual income. “The E-Myth Revisited” by Michael Gerber is a great read on this issue. If you’re going the wrong direction, speeding up won’t help!

 

WITHOUT A DREAM, NO ONE STARTS.

WITHOUT COMMITMENT, NO ONE FINISHES!

 

THINGS THAT WORK: BEST PRACTICES

Is it based on something everyone can do?

Like Bonvera:

– “Eat, Drink, Shop – Make Money”

– “Retail & Refer others to do the same – Make More Money”

– “Leverage the XO System – Create a Residual Income”

– Market Pricing

– Transparent

– You Own Your Business

– A Field Elected, Field Run Board

– A Replacement Driven Leadership Training System

 

As in EVERY industry there are a few Good companies and 1 or 2 GREAT Companies!

Learn the differences, Discernment (Wisdom) is still the most important skill to always be developing.

 

Welcome to the Future of E-commerce!

Welcome to Bonvera powered by XO!

– Chris Mattis