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Reducing Your Online Network Marketing Risks!

by Joe Reinbold

If you have been involved in network marketing through the traditional means of snail mail and meetings, the advent of the Internet can significantly expand your income potential. What used to take months in building a downline organization can take weeks online. There is no doubt that you can get into profit much sooner and with less promotional expense. But like any other business opportunity, you need to ask yourself some questions and analyze the opportunity before jumping to the website and signing up!

The tools for promoting MLM online can be awesome! Websites, online signups and payment, instant notification of signups, email marketing, free or low cost advertising and autoresponders can all contribute to building a tremendous income producing machine. And for the most part, many of the techniques can be put into action with little expense and without the large postage and telephone bills you might be used to.

When pondering a possible MLM company online, there are a number of items you should consider. Look at the promotional website. Make sure it is a company site or a site specifically approved by the company. A reputable MLM company should only allow the use of their website as the primary promotional tool. Most will state right in their rules and regulations that approval must be gotten for self-designed promotional materials. This insures conformity and a certain degree of ethics to the program, its operators and distributors. Just as an offline company mandates use of only approved materials so should a reputable online company. This is done to insure that there are no exaggerated claims which could put the company at risk with government authorities.

I have seen some primary promotional websites that are inaccurate and contain links to other unrelated programs. Why should a MLM company or its distributors want to promote anything but the primary company program on the company website? Why would you want a promotional website, for a program you specifically joined, promoting your $50 or $100 program and then half way down the page or at the bottom there are links for a $5.00 program which takes your prospect to someone else's site? A good company will have either a self-replicating website that you get instantly when you join, or furnish you with a personalized URL to link you to your own customized company page.

Take a look at what the company site offers you as a distributor. Ideally it should have a frequently asked question (FAQ) page, a product(s) page and a rules and regulations page. It should have information about the company including its location, telephone number and email address. It should also have a member's page which can be accessed after you join. It can have promotional tools, banners, suggested ads, etc. It should also have the capability of allowing you to review your downline organization online, so you know how you are doing.

Companies set up to do business in this manner will have these websites and tools available to you at no cost. It is part of doing business and to the company's advantage to give them to you. If a company does not have these online tools available to you, then they are not set up to do business online!

Email your potential sponsor or call them if their telephone is listed at the site. Get a feel for how the program is going and if the company responds to its distributors needs. See if your sponsor offers any type of assistance such as coop advertising or other marketing help. Find out if the company is paying commissions on time and if it communicates with its members on a regular basis such as through a newsletter.

Watch for companies that keep changing their compensation plans or products, it could be an indicator of instability. This type of activity can be very frustrating to distributors and cause a lot of dropouts. It could also be an indicator of a company trying to bring itself into a legal operating structure.

Over the past year there have been a number of companies that closed down or disappeared. Admax was closed down by authorities. LeadCycler Program just disappeared without notice. Sunridge Lottery Club apparently closed down, their main URL has had a notice on it for over nine months that they are rebuilding a bigger and better site and it refers you to another program site. And there have been others.

So there is no guarantee that any program is safe to join even for those that are experienced, we all have gotten burnt over the years. I have seen dozens of companies fold over the years. Some for no apparent reason, others grow too fast and can't handle the volume, some get closed down by authorities and others were pure scams. The best you can do is make sure that you do some homework before you invest your time and money. Ask Questions!


Joe Reinbold publishes a free weekly online newsletter, Home Income Quarterly E-dition. Each issue is full of online marketing tips and business classifieds. For your free subscription, subscribe@homebizlink.com with "subscribe" in the subject. Or visit his Entrepreneur's Home Business Link for freebies, monthly contests, bizopps, free links and more at http://www.homebizlink.com


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