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Choosing a good MLM company

Criteria: The owners of the company.

 
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First of all their are basically two types of ownership, public and private. Each has their advantages and disadvantages for you as someone seeking a Christian mlm home based business.

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Public Ownership: The biggest advantage to this type of ownership is more of a reassurance that the company management is accountable to a board, and that they have complied with all the legal ramifications of the network marketing industry.

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The disadvantage for you as an independent representative is that the company has conflicted interests. It must be primarily motivated to keep its shareholders happy - and making money; but at the same time provide good compensation for its independent representatives.

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Private Ownership: The biggest advantage to this type of ownership is that the company can be focused on bringing all of the profits into benefiting its independent representatives.

Read, hang out, and give us your thoughts on Curt's Biz Blog.

The disadvantage for you as an independent representative of that company are that the owners can be less accountable and possibly get into legal or ethical trouble; or just do stupid things because of lack of counsel.

My opinion?: Although this issue is important, I wouldn't let the type of ownership stop me if everything else seemed to line up with what I was looking for.

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Having said that, the smaller a privately owned company is, the more vulnerability you have as an independent representative. I've been a rep for two small privately owned companies that did a bad number on its representatives. So, the larger the company, the less likely this is to happen, as the owner(s) would have more accountability.

Just a final comment on some other "hype" in this industry. Many new companies will boast in their management or ownership because of some big shot that is a part, or came out of retirement to start a company, etc.

This should never impress or be used as a selling point. Just as in the sports world, great athletes don't always make good coaches. You get the point.

Coach Curt

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Curt Johnson
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