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Fundamentals, fundamentals, fundamentals, fundamentals.

(How to select the right MLM company) by Gnoy Dranreb

When it comes to the crunch, the companies with the fundamentals will not only survive but they will thrive. The stock exchange crash bore this out and the companies with the strongest fundamentals are prospering today. It is even more critical in MLM because so few companies ever survive beyond 10 years. And every new opportunity that comes and go continue to underline the need to look closely at the fundamentals of a company before you jump in and disappoint yourself and your friends. Yes, our friends can be forgiving but they will only allow you to make no more than two mistakes. What is at stake here is more than money; your credibility declines sharply with each switch that you make.

Every month something new and exciting will come to town and they will hit KL first before going outstation usually after the novelty starts to wear off. Newcomers to the industry and even old-timers in MLM often succumb to the temptation of being the early bird or the novelty of the products. MLM can and have been used to sell anything from diamonds, cemetery plots, miracle mattresses, gold coins to websites. Thatís why to help the inexperienced to differentiate the fly by night operators from the long term players industry experts have developed guidelines based on historic evidence. Start your examination with the four fundamentals. There should not be weaknesses in anyone of them if the company is to rise above the highly competitive environment.

The first fundamental (perhaps the single most important factor) is the product.

Almost every company has one or two attractive products therefore the examination must go further than the appeal of the products. The key here is, are the products consumable, do people use them everyday. When you deal with products that are bought once a year to cannot enjoy residual income because thereís no repeat sales. This also means when the recruiting slows down so does your income and because this is not a big market such companies seldom go beyond three years.

The next question is are the products duplicable? First, there was one NONI Company; today there are at least 6 noni products in the market. At first, there was only one website package, today at least 3 local and cheaper versions have sprung up.

The next question is, is it a one product company? Sure, there will be promises of more products to come but the waiting period seems to get longer each day. With very few exceptions single product companies have never gone beyond three years in this country. Choose the one with a range of products.

Thereís more, is the product a fad (one that comes and go) or is it a long- term trend like health and nutrition. Do the company manufacture the products themselves? Otherwise it will always be at the mercy of its suppliers who dictate the price and supply conditions. Does it have R+D? Without which no company can hope to stay ahead of the competition.

Only a handful of companies can pass such scrutiny, thatís why only less than 1% of companies in this industry can survive the 10-year mark and become key players offering its distributors the opportunity to build an estate for their children.

The second fundamental is the proven track record of the company.

Every company will try its best to project an impressive corporate front by parading high profile personalities and some will hide behind the respectability of public listed companies or other forms of trusted financial institutions. Remind yourself of the statistics, only 1% of companies in this industry survive 10 years so does it make sense to jump into bed with new start-up companies? Look for third party endorsements i.e. what are the experts (people who have no vested interest) saying about it. Do they really have MLM experience or are they just jumping into the MLM bandwagon to move products that nobody really want or need. The acid test here is, if there was no business involved would you and you friends still buy the product.


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If you are in it for the ďquickĒ money alone than this will not matter. But will you be able to sleep peacefully when you drag your friends into something they donít want or need and can ill afford.


The third fundamental is the Compensation plan.

This is perhaps the least important of the fundamentals because no one can patent their plan and it is the easiest thing to change. In recent times a flood of binary and other hybrid plans hit this part of the region. The record shows none have survive longer than five years. Some less experienced MLMers will fall for the argument that it is easier to build two lines than 6 lines as a result the money is quicker and bigger. What you earn will depend on the business volume you generate whether it is two lines or six lines. The smart operator in binary plans normally opens up at least 3 stations of two lines each. In other words they are building 6 lines in order to see the big money. If your plan requires six lines, most distributors will focus on building two lines at a time anyway. What is more important is that the plan has proven itself and can provide long term financial security without the yo-yo effects of recruitment driven plans.

Be wary of companies that emphasize the plan above all else which clearly suggest that their products are nothing much to shout about.

Perhaps the most important question in this era of the 4th wave is, is the plan seamless or borderless. Wave four companies treat the whole world as one market and distributors are encouraged to build a global business by expanding into countries newly opened by the company.

The remaining fundamental is the Potential.

Timing is everything! This is especially critical in the case of companies that operate only in a single country. Are you too late already which means you are catching the tail end of the wave.

How much potential is left locally and in the region? How many countries is the company operating in already? Do not make the mistake of thinking that just because you do not have any friends overseas you need not concern yourself with its regional potential. The chances are as your business expands locally someone in your organization will have friends and relatives overseas and that is important to them.


If you are currently with a company that is not on par with these fundamentals or you are looking for a company with all of them hereís the good news, you are in the right place and at the right time.

Few, very, very few companies have all of these fundamentals, which means 99% will not go pass the 10-year mark thus confirming that the industry statistics are correct. One such company that was awarded a perfect 4 out 4(based on the above fundamentals) by the independent magazine; DOWNLINES in America is Enrich International. It is the only 4th WAVE Company here today and itís poised to sweep through the region offering smart entrepreneurs the opportunity to build a global network marketing empire throughout the Asia-pacific region.

For more information kindly contact the person who gave you this article. Or contact: TEAM NOVA; E-mail : bernyhh @



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