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Evaluate any opportunity
Daves' method of Evaluating Any Opportunity
This is only one of the many things I have learned from
reading "Net Riches" ezine.
Readers Write
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Hello Dave,
You have mentioned that you investigate biz opps
before getting involved. Will you tell us what red
flags you look for, to know it is a scam or will just
not work.
Thank You
Mark Kypfer
Hi Mark,
GREAT Question! And like I said in my email
to you...I can't believe I didn't think of it myself!
Something so blatantly obvious to talk about here and
we never have before! I really appreciate not only
your input but everyone elses as well! Sometimes as
that old saying goes....You can't see the forest for
the trees! ;-D
Ok....the very first thing I do of course is read
EVERYTHING on the site. Alot of times...just good ol'
plain intuition will tell me whether this is possibly
a good program or not. But even then..until I have
read the terms of agreement...then and only then will
I begin a thorough investigation.
Alot of times by reading the terms of agreement you
don't have to investigate any further. For example. I
just reviewed a company for one of our readers who
didn't want my results published...site looked good..
nothing earth shattering or new...and on the surface
it looked great. They didn't just tell you, you were
going to make money...they GUARANTEED IT! All over
the site they guaranteed you would make money! But nowhere
could you find the 'specifics' of this guarantee...so I clicked on the order
now button...this is usually where alot of companies 'hide' the terms of agreement.
And right there in black and white it stated...Said company does NOT
guarantee you will make money. This will be dependent on your own efforts!
Some of the other things I look for. The product
itself! Is it something I personally would buy? There
are ALOT of so called business opportunities out there
that are nothing more than a collection of things that
you can get FREE online! They just pile them up on one
site and charge you anywhere for $29.95 to $249.95 to
access them in the 'members' area. No thanks..I like
FREE and will go get these myself.
After I look at the product...and if I decide that I
would personally buy it...I go and look at the comp
plan. Now there are a ton of things to watch out for
in the various comp plans. If it's an affiliate
program...I generally won't join unless it's a minimum
of two-tiers. That is you get paid for your sales, as
well as the sales of those who signup under you. Also
I generally look for programs that pay a minimum of
50% to me for my efforts. Although I have made some
exceptions. I also look at how often you get paid. Is
it monthly...with no minimum before they send a check.
Or do you have to make somany sales before they send a
check. Now these types of pay plans are ok...if the
limit is reasonable. There are some pay plans that
only pay quarterly...I generally will stay away from
these. I feel that after the sale...that money is
mine! I dont want you holding my money for any great
length of time!
Now...network marketing comp plans are an entirely
different story. This is where some really substanial
income can be generated...IF...you choose wisely.
There are a couple of things to watch out for. One is
the vertical downline comp plan. You've seen the
ads...join now and EVERYONE who joins after you will
be placed beneath you! There has NEVER been a network
marketing company that has survived for any length of
time using this method of compensation!! Now having
said that, there are two companies that I am watching
closely right now who have combined this comp plan
with the more conventional type of matrix structure on
the back end. I will let you know if I come to any
concrete decision about these companies.
You also need to watch with more conventional comp
plans the exact details. Do they allow you through
your own efforts to earn more than your sponsor? This
is the key question asked and investigated by the FTC
and other regulatory agencies. If the answer is
no...then you can bet this company will be fined or
shut down by the FTC or indicted by various state
Attorney Generals.
You also need to see EXACTLY what % of revenues is
being paid out to their distributors. As a general
rule of thumb...if the company is paying LESS that 50%
of revenue out to distributors....RUN don't walk away
from this company.
Also you need to look at product here as well. For
example, if you decide you want to get involved with a
neutraceutical type network marketing you definitely
want to check out the products. If they sell Vitamin C
for instance for $40 per bottle..and you can buy it
for $5 per bottle at Wally World you're in for tough
sledding. Maybe the reason the comp plan looks so good
is because the prices are so high on their products!
It doesn't matter how good the comp plan is if you
can't sell the products!!!
Ok...now we've found a company that we like the
product, and would buy ourselves...there are no hidden
loopholes in the terms and agreements...the comp plan
looks sound, the price seems reasonable...what next?
We investigate the company AND it's principals!
Here's how we do this...hopefully they have some info
about the folks running this company right there on
site. If not...while this is not always a red flag...
it does generally make all the hairs on my neck stand
up! Although as always there are exceptions. But here
is where I start looking up info on the company and
it's principals.
First stop is the Better Business Bureau Online. I'm
not positive this is the url but I think it's
The reason is I bookmarked my search results from Ask Jeeves *L* If that's not the
url just go to your favorite search engine and type in
Better Business Bureau Online.
Next one of my favorite places to check out that
latest scams online, and to find out if the company I
am investigating is listed is
The guy that owns this
site is very outspoken and tells you what is on his
mind. And if he's made a mistake...he will admit
it...which I like. But he pulls no punches so be
forewarned when you go for a visit.
Another place I go is to
This site is owned by Audri and Jim Lanford and they
put their heart and soul into this great resource
site! Another no holds barred type of site with alot
of great tools, tips, and techniques to keep from
getting scammed, and also what to do if you feel you
have been scammed! They also put out a great
newsletter that I look forward to reading everytime it
hits my inbox!
Usually I will use our government resources last. The
main reason is they're just slow! Comprehensive lists
of previous actions taken against companies and
idividuals are listed here however. The best place to
start is the Federal Trade Commission
Now I know this is getting rather lengthy, but I will
close with this. Sometimes when you're doing your due
diligence....you run into a brick wall. You can't find
out anything good or bad about a company or person. Or
you can't find out exactly who is behind a company.
Here are some resources for you to check out.
Telephone Databases
This includes reverse telephone directories.
E-mail Databases
This includes reverse e-mail searches.
Internet Domain Databases
While I no doubt have not covered every avenue of what
I do when I investigate a company...this should give
you a good idea and also hopefully some good
information for you, so you can now do your own
investigating.
The mainpiece of advice I can give everyone when
deciding whether or not to join a program/opportunity
is this....DO NOT let emotions rule you! Emotions are
going to be the very first thing that will happen to
you as you read ad copy. That's the entire point of
the copy! Just do yourself a favor...and when you get
overly excited and find yourself ready to just JUMP
inwith both feet...take a step back..go for a walk..
and then come back and USE YOUR BRAIN!! DO your due
diligence, and then make the logical decision!
Thanks again Mark for your question! It was a great
one! And thank you as well for being a subscriber!
Have a Great Day!
Onward and Upward in 2000
Dave
Dave Reno
International Internet Marketing Trainer
Presidential Founding Member of My Success Center
Leader and Trainer for Core Club and Aspire Group
http://www.msc4u.com/
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Patsy Goins
P J Marketing
P. O. Box 2138
Onalaska, TX 77360
936-646-5615
© 2000 Amazing Opportunities 4 U/Patsy J. Goins
This site created January 2000
All Rights Reserved
Last updated 5 January 2006
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