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Monday, April 27, 2015

Picking the Right MLM: The Risk/Reward Ratio

I am a probability kind of guy, and I like high percentages when I take a risk on a business investment. Choosing the right MLM means making the right investment with your time and money. This will lead to an immensely profitable pay-off at some point in the near future. Here are just a few things to look for:

1. Who is the Management Team: Bean Counters vs. Marketing Gurus

When you work for bean-counters its all about maximizing the profit per transaction. Sadly, this philosophy will ultimately demoralize the distributors as they watch their commission checks slowly disappear through comp plan restructuring and product dilution. The Bean Counters are there to maximize company profits and report to a CEO who was hired by the chief stockholders. You are there to make them rich, and once the company hits its profit goals they will always ask for more.

This is a Win-Lose situation whereby the company wins (short-term) and the distributor loses.

One of the Main Reasons I chose to be a RAIN International Distributor is because of its management team. Byron Belka is a dream come true. His goal is to create a billion dollar company. To do so, he realizes the company needs both a billion dollar product and a billion dollar comp plan. Both the company and the distributors are making money hand over fist because RAIN pays out 55% of its gross product revenue out in commissions to its Sales Force.  As a result, it is one of the fastest growing companies in the industry.

Byron was a distributor who bought the company. This is a key to finding the right MLM.

2. Who are the Company Owners?

In other words, who is investing in the growth of your company? Are they thinking short-term or long-term? Why are they involved?  Investors can kill a great concept, or they can nourish it. It takes deep pockets to grow a company, and deeper pockets to manage that growth.

One great thing about RAIN Internationalis that it is debt free. The owners include Byron Belka, Our Manufacturer,, Casey Whitaker (Back Office Software Company), Paul Hickey- Hickey Freihofner (Investment Banker & Bank), and David Dame (Sorenson Capital).

In fact, RAIN is the only MLM to have an Investment Banker put money into their organization. Most Investment Bankers consider MLMs too great a risk.

3. How much Debt does your company have?

High-Debt means high obligations which will impede and/or destroy any company's chance at growing in a competitive market place. RAIN International has NO DEBT! They are a pay as you go type of company. As you can see, minimal risk, based on the fact that an Investment Bank and a leading Financial Guru (look up Sorenson Group) have both invested in the company.

RAIN International, however, has access to unlimited funding should the need arise in the future. Clearly, RAIN will be a billion dollar company in the marketplace just based on the fundamentals I just explained. Minimal Risk- Maximimum Return.

Make sure you are in the same position before you switch companies or embark on your MLM adventure.

More in the Next Article.

Don't take unnecessary risk with your time and money! You Only have a limited amount of both! Make the Right MLM Decision!

Join Team Drockton. Visit their website

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