There are two basic reasons an MLM company has disclosure statements.

One is to dazzle and confuse you with charts and graphs into believing that they have the best program of any network marketing company on the planet.

When you see this type of disclosure and you have been around network marketing for a while then you should be able to recognize that they are telling you that the success rate of distributors in their company is way beyond what you have ever seen before. It will appear that almost everyone who joins makes lots of money.

All they are doing is reporting partial information. The favorable part. I have had distributors from one company that believe after looking at their company’s disclosures that one our of every 30 distributors will make $10,000 per month. That of course means that you would have to make more than $300 off of each of those 30 distributors each month. Since the average distributor does not even approach $300 of personal volume each month, then that would not be possible. Companies don’t pay more than 100% back to distributors. The numbers average around 50%. And this is MLM, you don’t make all the money from everyone in your downline. Others share those profits too.

The good news is that if you do have some success with the company then it is just a matter of time till you learn that they have deceived you. What else are they willing to lie to you about?

The second reason for disclosures is companies that are required to report this info because of a court order.

One company in this position has two disclosures they use. The first will bore you to death if you take the time to read it. They really don’t disclose anything. They just call it a disclosure. When you finally find the very hard to locate second disclosure it starts with the same worthless info. They hope you will quit reading before you get to the real disclosures that they are required to disclose.

When you finally do get to the real stuff you will see a statement that says, “In 2006, 59% of all IBO’s received no income.” Each year about this time the new numbers get published and they are usually a little worse that the previous year. Ask yourself, if you were looking at joining this company, would you join just knowing this one fact? I don’t think you would.

Out of all the distributors that I have talked to that have been in this company, not one of them had ever seen this till I showed them how to find it.

It gets worse though. I went to a meeting at the local company provided location. I was told there by several people doing well in the company that I could reach a certain level in under two years and be making $10,000 per month. But in the company disclosures it clearly says that the average income and time required to get there is much different. The disclosure says that the distributors that actually achieve this level of success, make less than $500 per month on average and takes them an average of 47 months to get there.

Would you join a company if you knew going into it, that if you are one of the successful distributors, it would take you on average 47 months to earn and average of just $500 per month.

You wouldn’t join would you?

So the next time you are looking for a new company, look for disclosures. If you find them then they will either be there to dazzle and confuse you about the truth, or they will be there because they must be and they really don’t want you to see them.

If you are in a company, I suggest you check to see if they have disclosures.

Plug into the free MLM training at Mentoring For Free and learn how to evaluate companies. It will save you years of failure and frustration. That is just part of the a-z free MLM training you will receive.

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