How to Protect Your Investment in Network Marketing

Would you invest thousands all in one company that inconsistently yields less than 1% return on your investment? Would you consider that a good return? The rich don’t think that way and neither should you!

If you’ve ever invested in stocks or mutual funds and such, you know that it’s extremely important to diversify your portfolio. Why? Because, it is the best way to protect yourself and your money. Should one company fail to live up to expectations, you minimize your losses. This is even the more relevant in network marketing industry.

Don’t think your network marketing company will fail you?

Distributors Rights Association is dedicated to defending MLM distributors from unfair tactics used against them by their network marketing company. It logs and displays the more recent incidents of MLM distributor suspensions, terminations, and fraud within the industry. There are lawyers who specialize in these cases and they are kept very busy.

• Distributor suspension is one step before termination. The MLM company will suspend all income from a distributor while it considers as to whether or not any rules have been broken. However, D.R.A. has noted a growing trend among floundering MLM companies to use this tactic against their top distributors and “buffer up their coffers.”
  
• Distributor termination is another common complaint. Let’s say your doing very well and moving up the ranks of your MLM company. In fact, your doing better than your upline (not surprising when using the Internet to build your business). DRA has recorded cases of false allegation against another distributor who has much to gain by their termination. Most often, the company does not do a thorough check investigation and all too quickly terminates the accused and the distributor loses all contact information with his/her downline as well as all monies earned. The accuser on the other hand, inherits the terminated distributor’s downline and all the income generated from it.
• Similarly, there are recorded incidents of top selling distributors suddenly cut-off from the company and their downline. Failing MLM companies have been known to cut off some of the top earners in an effort to lower their expenses. The example used was when you have a distributor who brings in $20,000 worth of business and receiving $50,000 in earnings. The company will consider the $20,000 an acceptable loss in light of the fact they save $30,000 after terminating the distributor ($50,000 – $20,000 = $30,0000 savings).

Look, do you believe your house will burn down, or a flood will suddenly destroy your property? No, and neither do I. However, I still pay a monthly premium for my homeowners insurance just in case. This affords me protection for the things I have worked hard to obtain. In essence, it protects my investments, my assets from certain risks.

Think of all the effort and time you are putting into building your MLM/Network Marketing business. The hard truth is that it does not belong to you. You don’t have exclusive say or ownership over your network.

Think about this…why are you investing so much time, money and effort in something you don’t own? At any time, the company could conceivably cut you and several other distributors or IBOs off from their downline. Top distributors bringing in well over $10,000 a month and living a comfortable life when suddenly there were cut off from the company, their own downline and income. It’s happened to many others before. Isn’t that enough of a reason to start taking some precautionary measures?

So how can you protect yourself?

For network marketers, the question is not “how can I become a top tier network marketer?” Think of your network marketing business as just an extension of your online business. Instead, ask yourself, “How can I use Network marketing as another income stream for my business.”

Start an online business of your own with multiple streams of income, including your network marketing’s products/services. Consider your MLM as only one of several sources of income. There are many ways to successful build an income stream using the net including information marketing, affiliate marketing, selling digital and hard goods, selling advertising space, and many others.

Did you know that in most MLM companies, a distributor’s down-line cannot be inherited by their children? They too will have to start from scratch. Use your online presence to target a ripe audience already looking for network marketing opportunities.  A well plannned website will qualify your leads and compile a targeted list of warm leads for you.  This lsit is yours! All the while you are making money from everyone visiting your site even if they don’t join your MLM.

To quote a common American expression,  ‘take the bull by the horns’  and learn how to protect yourself, your business and your family’s future first. Having your own online business and multiple income stream protects and is something you can pass along to your children in the long run.