90%+ Businesses Opportunities DESIGNED to Fail on the Net

by David Belton

The Cash GRAB System

Did you know 1000s BIZ OPS come and go every year on the net? Why does this happen? Who is to blame? Who gets screwed - who wins?

Tough questions? You bet - the answers are even scarier. But why is this happening?

There are no simple answers .... However, let looks at some facts....

1. The average BIZ OPS seeker will sign up for 5 to 10 programs in a single sitting without investigation or with very little... Just give them a form to fill in, tell them it's "FREE" and watch the sign-ups come in... a friend of mine calls this the "Cashlinks Effect" - people sign up for everything under the moon with no idea or plan to work any one business.
2. The more "cookie cutter" the system, the more people will sign up. The more automated the system - [read less work involved] , the more people will sign up - forget the personal contact issue or even the premise of business partners.
3. The bigger and more ridiculous the income claims, the more people will treat it as a serious business. The bigger the "carrot" - the more more people will promote it - and promote it seriously... because everything you read on the net, must be true - right???

Over the past five years the Internet has created a BIZ OP seeker that want to join everything, do nothing and make a million dollars overnight.... in other words this has created a deadly combination designed to promote failure at an astounding rate....

What this has really created is:

1. A person without focus and with no idea what the business[es] is really about. [more on this in a moment].
2. A person that does not want to have any personal contact with their network and/or sponsors and/or business partners. No personal "rap ore" = No long term success. Businesses - All Businesses - are built on teamwork.
3. A person that has unreal expectations on income, and BLAME failure on themselves, when they do not achieve it.

All of these factors multiply the chances of failure - in fact make it a certainty in 90%+ of cases. And here is why:

In order to build any business, Networking business, MLM - you must have COMPLETE focus, completely understand it, the products/services and pay plan AND have upline support to build it AND have a reasonable expectation on income with said input of effort on a period of time - with consistent effort.

In addition - all business are built on teamwork - in networking or MLM - this is REQUIRED. You must build a personal relationship with your upline AND downline to even begin to have success - even if it's an email saying "HI!".

You think you can build a Network business or MLM without working with your uplines and downlines? It is a 100% HISTORICAL fact you will fail .

Anyone that has had real long term success in Networking or MLM will tell you this.

And - the number one reason people quit - lack of support from their upline.

In other words, you can only work one business at any one time - correctly with 110% of your effort to get "reasonable" results. The Cashlinks system was created under this premise - combining multiple programs into one site, one sign up system and one training system to stop of onslaught of people trying to work 10-15 different programs and literally blowing their brains out in the process.

In other words - people with little or no business experience are coming on to the net with no understanding of business and networking dynamics and are failing by the millions with no understanding of why they are failing...

And then when a legit opportunity comes along...

You think they will join it? Or recognize it? Or work it correctly and working with the people in the business?

After being burnt by so many other scams???

So what is the cure??

1. People must be taught how to recognize a real business and when a "real" business is found, be able to evaluate the "numbers".
2. People must understand AND ACCEPT that real effort must be put in and they must have real people to work with. If you want to build a long term income, YOU MUST build upline and downline relationships.
3. Incomes must be investigated and stand up to "the light of day".

Some of you many be a little upset, or hot under the collar at this point... GOOD. Yes, we will talk about how to recognize the scams and real opportunities in a moment....

As we go into these points, let talk about the "Cash Grab System".

For clarification, the points mentioned refer to an MLM or Networking business online.

The "Cash Grab System" is designed at the VERY BEGINNING to fail in a short period of time. It is designed to take advantage of new people with no experience using all the above mentioned techniques to literally suck people in [no idea what a business is, the promise of no personal contact, and income claims in the millions in 30 days or less]...

Oh oh... sounds familiar?

Lets talk about money.

All long term businesses - that are stable - must sell a products and/or services - this is where the money is made - and is the LAW.

Its ok to have a membership fee - admin fee - and/or business kit fee - providing they are reasonable AND DOES NOT make up or have anything to do with long term income.

It other words, the majority of your income must be from the sales of products and/or services NOT from memberships / admin fees / business kits.

Special Note on "Membership Fees":

Access to an online "members" site is a product/service. Just because the product is "online" does not make it any less a product and/or service. Many sites, call this a "member's fee" , where in fact it is a service or product fee - think of it as a magazine subscription.

Business kits should be refundable - and should be a BUSINESS KIT - telling you how to build a business - not a product or service.

Note, that some states and countries PROHIBIT the charging of a fee for a business kit and/or set a return period by law - check with your local government on this [provincial or state].

If the KIT is over $100 US, they should contain products/samples that RELATE to the building of a business.

So in other words as long as commissions are primarily based on the selling of "tangible" goods and services - the opp is legit right?

To a point. Part of the reason people get scammed is the complexity dis honest promoters use to hide the truth or to "sugar coat it"....

Next part of the test... let's talk about money flow.

This relates to how commissions are paid out. The test here is simple - if a person can EARN MORE than their upline, because they put in more work - the opportunity is NOT what is called a PYRAMID.

For comparisons sake, a PYRAMID is a CORPORATE structure - when the boss is at the top, followed by managers and then employees. Regardless of how hard an employee works, his income will never exceed the amount a manager makes, and by the same token, a manager will never make more that his boss makes.

In other words, he that does the most, gets the most.

If your upline ALWAYS, no matter what YOU do, earns more money than you - then there is a problem. The only way to check this is to plug the numbers into the compensation plan.

Ok - now we come to the next parts - the actual products/services....

Is the products and/or services in demand AND at a fair market price???

That is the question.

IF, in order to you to get paid, raises the fair market value above what the market [the public] is willing to pay - guess what... you will not get too far.

Factors than can effect this are:

1. If the products/services is a higher quality, then a higher price can be charged.
2. If the products/services are unique and PATENTED and can not be bought elsewhere.

In addition, if the product line is less than 10 items or a single item, think twice - a good , well rounded opportunity has a variety of products and/or services.

Fewer items mean the less chance of a sale, and lead to a less stable income.

Now, if the biz op you in has past these hurtles - now comes the TYPE of income you can earn. This is where a judgment call on your part is required - and we will give you the information to make a smart one.

If the product in a one time purchase - you are selling. You effort must be continuously repeated to MAINTAIN an income. To increase the income, you must [and so must your downline] increase their efforts. This type of income is unstable and goes up and down like a roller coaster. No matter how you "sugar coat it" - this is selling pure and simple. An example item would be a TV - you only buy one once every 5-15 years.

If the product in a consumable item or service - in other words it must be re-purchased on a regular basis - you are generating a residual income. This is an income that can grow - with the same level of effort input. You are simply finding more people every month - that go on re-purchasing every month. You sign up 10 people a month, for 10 months, you have 100 people purchasing - a steadily increasing income, that is stable [see below] - with the same amount of effort inputted - each month. If you downline gets busy - your income multiples with their effort.

These are items such as food, cosmetics, house hold cleaning items, etc.

This is the type of income you should be after!

The "Stability Factor"

"Stable" refers to the number of customers that re-purchase monthly on a continuos basis. If your rate of re-purchase is for example 80% and your rate of growth per month is 20% then your business is stable - at 0% net growth [80%+20%]. IF your growth rate in this example is 25% - you have a 5% net growth rate. What this means is, that EVERY month, you have to duplicate 20% of your effort just to maintain your business and current income. If you want to increase your income you have to work harder. The "Stability factor" is the single most important factor in determining how hard you have to work to generate an income and how hard you have to work EACH MONTH to maintain it AND make it grow.

Let look at another example - a real one. To keep my lawyers happy, I will not mention the name of the company - however, I can safely say these number are true, as a was involved with this opportunity years ago for a number of years... and everyone know of them - and I know the numbers FIRSTHAND.

Loss Rate: 50%

This means 50% quit/stop purchasing EVERY MONTH. That means you have to RE-Build 1/2 your business every month AND so do your downline - and that's just to maintain a business income. BTW this loss rate was in the TOP line of sponsorship. Averages elsewhere were 60%-70% per month [losses]... no, I am not making this up - these are the facts.

I want to make sure everyone is following these numbers and what they actually mean - they mean every month, you have to re-build 50% or greater of your business to MAINTAIN your current income. To increase the amount of income - you have to further increase your efforts - but it gets worse... let me explain.

Let's say month one - you get 100 people involved in your business. 1/2 quit - so you have 50 now.

Month two - You have 50 from month one - your sponsor 50 to replace the losses from the previous month. And you put on a HUGE effort and sponsor another 50 = Total 150. 1/2 quit - so now you have 75.

Month three - You have 75 from last month - your sponsor another 75 to break even at 150 again - but this month, that's all you do.... 1/2 Quit - so now you are back at 75.

Yes, the truth REALLY REALLY STINKS... This is one of the main reason people FAIL in networking - because they do not understand the numbers, and what they really mean... Prior to getting involved.

Now, let look at another example... another REAL one.

Loss Rate: 5%

This means 5% quit/stop purchasing EVERY MONTH. That means you have to RE-Build 5% your business every month AND so do your downline - and that's just to maintain a business income.

I want to make sure everyone is following these numbers and what they actually mean - they mean every month, you have to re-build 5% or greater of your business to MAINTAIN your current income. To increase the amount of income - you have to further increase your efforts.

Let's say month one - you get 100 people involved in your business. 5% quit - so you have 95 now.

Month two - You have 95 from month one - your sponsor 5 to replace the losses from the previous month. And you put on a HUGE effort and sponsor another 100 = Total 200. 5% quit - so now you have 190.

Month three - You have 190 from last month - your sponsor another 10 to break even at 200 again - but this month, that's all you do.... 5% Quit - so now you are back at 190.

Guess which business is easier to build - guess which one offers the more stable income, and guess which one you and your downline can build quicker?

Factors that effect "LOSS RATE":

1. Money - if people are making $5 or more, the loss rate drops [ as low as 1% LOSS RATE ].
2. Speed - regardless of the loss rate itself, the faster a business is built - and people start making money, the lower the loss rate.
3. Cost - if the products and/or services are competitively priced, the loss rate will be affected positively [more losses] if the price is HIGHER, or negatively [less losses] if the price[s] are lower than the market value.
4. Active Downline - If people you have sponsored, are also sponsoring this will directly affect the loss rate in your business. The more active sponsoring the is occurring CONSTANTLY - the lower the loss rate.

Special Note:

The LOSS RATE is 100% if the product is a non consumable - in other words, you are SELLING. Selling implies a continuously repeated effort to maintain the same income as the previous month. Since you can not resell the the same non consumable twice to the same client - your loss rate is 100%.

Now that you have a basis to protect yourself from non legit business opportunities and legitimate ones that really are not opportunities at all [high loss rates] - let talk about the money factor and reality.

In all cases below, help from your ACTIVE upline is required.

$10000 in 30 days

There are amount 100-200 people on the net [excluding corporations and big business] - that can actually make this type and level of income this quickly at a "push of a button". This is because over YEARS of effort on their part, they have both the REPUTATION and name lists - in other words, they say get in, people get in.

It is important to note, that these people are NO DIFFERENT than you - they have been simply working at it longer and/or more consistantly than you - in other words they have a head start, through prior work they have done.

If you repeat this effort [increase your business by $10000 in income EXTRA per month - and for purposes of example have a 0% loss rate] your income would be:

$10000, $20000, $30000, $40000, $50000, $60000, $70000, $80000, $90000, $100000, $110000, $120000 =

$780,000 in 12 months or $120000 per month at the end of 12 months of effort.

$1000 in 30 days

The average person CAN attain this if an HIGH ABOVE AVERAGE effort for every day in that month. The requires a monumental effort if you are new on the net.

If you repeat this effort [increase your business by $1000 in income EXTRA per month - and for purposes of example have a 0% loss rate] your income would be:

$1000, $2000, $3000, $4000, $5000, $6000, $7000, $8000, $9000, $10000, $11000, $12000 =

$78,000 in 12 months or $12,000 per month at the end of 12 months of effort.

$100 in 30 days

The average person putting in an average effort constantly, can do this - you will need help and guidance from your upline.

If you repeat this effort [increase your business by $100 in income EXTRA per month - and for purposes of example have a 0% loss rate] your income would be:

$100, $200, $300, $400, $500, $600, $700, $800, $900, $1000, $1100, $1200 =

$7800 in 12 months or $1200 per month at the end of 12 months of effort.

Not a big income yet? Wait...

Year 2

$1300, $1400, $1500, $1600, $1700, $1800 $1900, $2000, $2100, $2200, $2300, $2400

At the end of YEAR 2 - you are making $2400 per month.

Year 3

$2500, $2600, $2700, $2800, $2900, $3000 $3100, $3200, $3300, $3400, $3500, $3600

At the end of YEAR 3 - you are making $3600 per month.
...
At the end of YEAR 4 - you are making $4800 per month.
...
At the end of YEAR 5 - you are making $6000 per month.

What are the factors here:

1. You made a consistent, average effort over 60 months to make a $6000 per month income at the end of 60 months. It should be noted, this only refers to YOUR efforts - if someone in your business gets as serious as you - you income could be SIGNIFICANTLY higher than this.
2. The Loss rate was 0% - if it was 5%, the end income would be 5 * 60 = 300 - total income per month at the end of 60 months, 6000-300 = $5700 per month.

To summarize, you now have the weapon, called knowledge to "plug in the numbers" and ask the "right" questions... in addition, as the numbers prove above, you will not "get rich quick" in any way or form on the Internet. It simply DOES NOT WORK and WILL NOT WORK in any program, or opportunity.

The only way to build a strong income is to find an opportunity that passes all the above tests, has a very low loss rate and to consistently work it for as LONG AS IT TAKES to achieve the income goal you want - but work constantly, every month.

Yes, it can take years - but it is time to face the music, that jumping from Biz op to Biz op will not give you what you want and that you are not going to achieve overnight success without the work.

So, what you have to do is:

1. Find a Biz op, and do your homework [above tests!].
2. Decide to pursue it - and start, and go and go.
3. Determine the amount of income you want to make, plug the numbers in, and determine the amount of effort required.
4. Never give up. If you have done your homework, and know the numbers, it's a done deal.

There is no other course of action that works - effort multiplied by time - using a good plan that works.

There are a few other tests you should know about it:

1. Age of the company - if it's less then 5 years BE CAREFUL. Companies that are illegal are generally shutdown within 1 to 7 years.
2. Debt Status - more debt means higher prices and LESS commissions.
3. Compensation - if all the money is in the first few levels - forget it. If there is no money in the upper levels [read make Leaders] - there will be no one to go on to build a big business because there is no money in it - if there are no leaders, there is no one to help you.
4. Public Ownership - if a business in owned/controlled by shareholders, this can put the business in a situation dictated solely by money - and not by what is right and should be done... BEWARE.

Now you have everything you need to make an informed decision. There are no excuses - if you are wondering why you are failing the reasons are above - if you do not know what they are - run the numbers.

This is not rocket science - however, very few have the guts to tell it like it is. After years of watching , hearing about it and/or getting scammed myself, I have had enough - hence the reason for this article. Enough is enough - the lies must stop and the truth must be told - in order to safe guard everyone's time and efforts and to put a stop to failure BY DESIGN.

Time is the only thing you can not buy. Used wisely and properly, it is worth money. Used with knowledge , a plan and the right people, time is the most important asset you have.

It's time to stop wasting it.

Copyright 2000, David Belton. Reprinted with permission.
http://www.becanada.com/$/?pitrust@hotpop.com

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