Google
 

29 November 2009

A quick how to evaluate MLM and other businesses

As I may have mentioned I am in the process of looking for money making opportunities on the web and somehow I have stumbled across a web site that latched onto my e-mail address and started sending me e-mails about the wonderful offer to join and make lots of money with their multi-level marketing program. I have since been studying multi level marketing or MLM and been trying to learn some of the basics as well as some of the language. It seems to come with its own set of dialect and you really need to understand it if you are contemplating entering the world of MLM. Also, I found some common themes to look out for if you are considering becoming a participant. Some of these criteria will eliminate many MLM plans before you get to involved and so that you don’t waste too much time yourself, I will share on these pages some of what I have found.

First of all my fast and friendly rules or rather questions for evaluation:

Is this a legitimate business opportunity? Having an accounting and business background the first thing I try to do is evaluate whether or not this is a viable business. All business is based on selling goods and/or services to a customer that has a need for those goods and/or services. If you are able to provide those goods and/or services to your customer at an agreed upon price you have a business. If not then you have something else.

If there is even anything remotely illegal or shady then walk away. If you are presented with a clever way of doing something to avoid taxes or protect assets in a questionable way or you are obtaining goods through other than normal channels then avoid it. There are many legal ways of making money and you want to be honest in all your dealings with your fellow man.

With that said, be fair in your evaluations. If you don’t understand a business you are looking at then keep asking questions until you do or decide right there and then that this is not for you and move on. Just because you don’t understand a business concept/plan/product does not make it illegal. Nor does a bad business plan and an overpriced product make it a scam or a pyramid scheme though because of misunderstandings and the way it is operated it might appear so. The label of scam is thrown out too easily by the many people who got involved in something that they didn’t understand. They didn’t realize just exactly what it was they were getting involved in especially in MLM type businesses generally no one was there to correct the misunderstanding.

That brings up another thing to look at, namely the people you will be dealing with, from the company itself to the network of dealers and representatives you will interface with on a regular basis. Is there integrity there and can you trust them? Can they and will they act as a support group to help you through the lean tough times that will creep up? Are they knowledgeable and are they willing to share that knowledge freely? Is there a mentor that you can look to for advice, counsel, and encouragement?

The next question then for me is to look at the product itself and ask ‘Is this something I would buy as a consumer and would I be willing to pay full retail for it?’ Notice that this is a two level question and both parts must be answered honestly. There are many products out there that I would love to enjoy but am unwilling to pay the exorbitant amounts required either on a one time or regular basis without a great change in my personal financial dynamics. (Sorry Bentley but I am staying with the Honda for now.) There are also many items that I would not be fond of whatever the price (with certain “music artist’s” that come to mind). The product has to be one that I believe in and be proud enough to let others know that I am a part of. Without that, how will you ever be able to share it with others and grow your business?

This brings up many other sub questions that relate to any business you might be contemplating a purchase of or participation in be it an MLM, a franchise, an existing business, or stock in a corporation. What does the business do? Who are the customers (demographics)? What is the business plan/model/process, in other words how do you work the business to make the business work? For an existing business or franchise the operations of the business should be pre defined with a successful method that can be easily replicated; that is how you have places like McDonalds.

Also in that light, what competition is there? Are there many others that are selling alternative products? What advantages/disadvantages does this product have compared to other products? How does it compare on price/quality/value? How informed is the consumer? Will you have to compete with others that are selling the same product, in other words, what is your territory and do you have any exclusive rights or will you have to share? In our world of information modern society has loaded us up with alternative solutions and competitive pricing. How will the product stack up, not only today but tomorrow?

We all have certain skills/knowledge that can be applied in the building of a business and we all lack certain skills/knowledge that will make the going harder at times than at others. Do we have the commitment and/or resources to obtain the skills/knowledge ourselves and do we have sources available to obtain them as needed? Are you willing to look for them when they are needed? An honest evaluation of yourself is need here to determine if you have what it takes to take on this business and if not do you have what it takes to obtain it. Are you willing to put forth the effort to obtain the reward?

Notice now please that I have come quite a long way before mentioning the one thing most business is based on and most MLMs are sold on and that is the money you can make. Theoretically, the amount of money any business can make is unlimited or relatively so as a business can be grown, expanded, merged, and so on into whatever you decide to create. Realistically, there are obstacles that must be overcome all along the way and how you deal with these will in large part determine your success…or failure. But eventually everyone wants to know, “what’s in it for me?”, and they should. Is this effort going to be worthwhile? What can I “reasonably” expect to take away from all of this? What will be the realistic expectations for my return on investment?

Unfortunately this is where most sales pitches for businesses start and sadly where most businesses end. It is easy to get the emotional glands charged up with talk of grandeur and have you salivating about mansions, hot cars, second homes, yachts and living like the stars on TV, because that is what fuels the fire in many of these businesses. Once your eyes glaze over and you are dreaming in lala land you are less likely to pay attention to the reality of the numbers. The accountant in me is always trying to look at the numbers, trying to make sense of what is being presented, and even if the simple math is correct (and many times it isn’t) are the numbers that are being used an accurate realistic portrayal of fact or are they a work of idealistic fiction? If the numbers are valid and the math is good, what is the timeframe for which they are referencing? It is easy to make a million dollars, for one it might take a year and for another it might take a lifetime, but it can be done.

Remember that you are evaluating a return on investment which should have you asking “what are the costs?” Look at all the costs, those for product, those to join, those to recruit, those to market, and those for daily operations and then ask yourself “will I have enough revenue to cover those costs and still have something leftover for me?” It is important in any scenario to have something leftover for me, and with proper money management you should. Proper money management with the aid of a legitimate business opportunity should be able to lead you down the path that will make the houses, and cars, and trips a real possibility.

Even the traditional job will get you there with proper money management but most of us are looking for a way of getting there that is a little more productive and exciting that the traditional job route hence the search for alternatives.

There is a lot to consider before putting up your hard earned money and making the commitment that goes into these decisions. Many do so on impulse without full understanding and therefore many suffer the consequences of their actions impacting those around them as they go. That is also part of the reason for the high turnover rates seen in MLM.

Many will join in the heat of the moment or for the sake of a close relative or friend without any intention of making a go of it. Many don’t understand that there is work involved and an effort of time and stepping outside their comfort zone all the things they weren’t counting on when they had the fast cars and trips dancing in their heads. Frustration then sets in as they look out the window and don’t see the fancy new sports car sitting in the driveway while the write another check for yet another box of product that they don’t even use. Then they think of the one that talked them into this in the first place and can’t remember when the last time was that they last talked and they tell themselves that it is no big loss.

I have seen this happen to friends and strangers and want to learn from the mistakes, and as always try to pass these things on to you. As I look at some of these things I run across I will share with you what I see and we will all grow wiser. Look for further entries on specific examples as I continue my search.

This is Ed Nef with a view from the Farr West.

13 November 2009

iRazoo do you, or do I?

Have you heard of iRazoo? In my effort to find new ways to be compensated for wasting my time on the internet and providing a second or third or even thirtieth supplemental income I happened onto a web site called iRazoo, and as all things such as these I will pass on my findings to let you know if it is worth it or just a waste of time.

iRazoo is a new search engine web site that adds a twist of earning points with each search and letting its users provide feedback on the usefulness of the site through comments and a vote of yes or no to recommend a site also earning points. These points can then be traded in for toys or gift certificates. Seems simple enough but how does it deliver.

First off you will notice that as a search engine it is kind of weak. It will pull in sites for you but it is quite a mix with many entries seeming far off target. In fact they look like plants (paid advertisements) that have little to do with the subject at hand. That means that you will not be using this site as an alternative to do your regular searches. So the real use of this site is to gain points and earn stuff.

Points are relatively easy to earn, in fact it was so easy that they changed the rules within days of my joining. It seemed that some would just hit the site, grab points and move on without any seriousness in evaluating the recommended sites, so they added a timer which means you cannot vote for a site until 30 seconds have past. That is o.k. because the site comes up in a new tab, and while you are waiting for the 30 seconds to pass, you simply go back to the search page and click on another site to open up, and another one after that.

Update: They will only let you open one searched page tab at a time now so no multi-tasking means it will take 3X as long.

Three is the limit however as you can only earn points on three sites per search term used, and that is not a daily limit, that appears to be for all time. That means you have to get tricky if you want to search on a topic you are familiar with. For example, you might look for ‘Mini 500’, ‘helicopter’, ‘mini 500 helicopter’, ‘mini helicopter’, ‘500 mini’, ‘500 helicopter’… anyway you get the picture. Also each page can only be used once for points so you will have to choose carefully. Notice I did say page and not site so each page on the site can bring you points.

The three click limit is very…well limiting. Again, as a search engine iRazoo is less than stellar for those that know there are thousands and millions of web sites out there for just about any topic and to hold yourself to just the first three is rather silly.

The next limit that you will become familiar with is the daily earning limit which is currently set at 300 points per day. Because of the way the points are paid out, 8 here and 8 there, I don’t think I have hit an exact 300 yet. 300 divided by 8 gives you 37.5 so I always have a number that leaves me short and it doesn’t look like it will pay you partial points to fulfill your max. This just means it takes you longer to reach a prize level.

So what are the prize levels, or in other words, how long will it take to get something for nothing? First thing to remember is that there is very seldom a something for nothing; you are trading your time, interest, and feedback if nothing else. Even with the layered multi opened page approach I use it takes about 20 to 30 minutes to max out my points (your mileage may vary). In the iRazoo advertisements they say that you can earn a prize in as little as 10 days but that has to be 11 now since you can’t reach a full 300 point day to make the 3,000 point minimum prize level in 10 days.

So what do you get for your 3,000 points of effort? A $5 gift certificate to Amazon. Now you will have to run the numbers for yourself and decide if 5 hours worth of effort over an 11 day period is worth a $5 gift certificate but $1 per hour hardly seems worth the time, especially if the usefulness of the search engine just isn’t there.

If you wish to accumulate your points there are higher prizes to be had such as a Nintendo Wii, Playstation 3 40gb, or Xbox 360 60gb for 100,000 points. An unlocked 16gb iPhone can be had for 600,000 points (that’s 2,000 days or 5.479 years for those that are counting). Or you good just hold out for the $25 Apple iTunes music card for 18,250 points (about 61 days work).

Can you get more points and can you get there faster? Yes, sort of. Two ways are offered, one is that there will be banners appearing for which you can take up an offer or buy product and the sponsor will credit you with points, eventually, (allow 6 to 8 weeks…you know the drill) and in the mean time you have given you info out to yet another someone on the web and possibly some hard earned dollars for a product you might not really have wanted for which there are plenty of other sites to get rebates on your purchases. If you can’t tell, I don’t think I trust the banners.

The other way to get points on iRazoo is to put a link to iRazoo on your web page about iRazoo or tell a friend about iRazoo so that they can join iRazoo and take advantage of this thrilling iRazoo search engine web site by joining iRazoo themselves and earning their own iRazoo points and iRazoo rewards, and for each person that joins iRazoo based on your sponsorship and promotion of iRazoo you will receive 50 iRazoo points and the person referred will also receive 50 iRazoo points. So feel free to click on any of the hyper linked mentions of iRazoo and you can play iRazoo also. Did I mention that only half of your points used can come from iRazoo referrals’, yet another limit placed on your iRazoo efforts at iRazoo.


Although I haven’t been on iRazoo very long, maybe a month or so, (it has been a busy month) and I certainly haven’t been on it every day, I am up to 2,418 points and am working on my first Amazon gift card. Why, I don’t know. I just want to see if it works for one thing and the pursuit of something for nothing still intrigues me. I also can’t tell you how quickly they pay out or how true to their word they are because I haven’t hit that spot yet either. They do have a promo going where you can win a search and win $5 Amazon gift certificate but I haven’t won one yet, and I’m not holding my breath.

One more suggestion for those willing to try, leave your radio or TV on in the back ground so when you are drawing a blank on what to do for the next search word just use the first word or phrase you hear coming out of the radio or TV. Do this carefully though, for it might be a word from a commercial that you really aren’t too anxious to learn more about.

Now that I have taken the ground work for you, it is up to you to decide if it is worth it for you. If I get one gift card I will be happy but I will also move on to hopefully bigger and better things. And as I continue to look for them I will continue to share my findings with you.

This is Ed Nef with a view from the Farr West.

30 September 2009

Out of commission from a little bug

I have been away for a little bit, sorry about that. I think I came down with the Farr West Nile Malaria Hepatitis Swine Flu C. O.K. maybe not, but I have had a whopper of a head cold that has lasted two plus weeks.

I don’t exactly enjoy getting sick. I don’t imagine there are many that do. Sometimes it is o.k. because it is your body’s way of telling you to take it easy, slow down, and catch your breath. You take a day or two off, relax and you are ready to get after it again.

This was not one of those sick days. This was one of those shut down days. There is no energy, there is no focus, there is no brain power, and there is no joy. When these kind hit, I literally shut down. I don’t bother to do much more than watch T.V. and sleep and occasionally eat. That’s it. I might want to do more but I just can’t. Reading is reduced to looking at the pictures in a magazine with the occasional effort to read the caption but seldom the text that goes with it. How can I? I have tried in the past to read a book only to notice that I am still on the same page after 35 minutes and still don’t know what I have just read.

So rest I needed, and rest I did…for three days at least. Then I started to get a little antsy even though there was never enough energy in me to do anything about it.

If anyone needed an incentive to get better just turn on daytime T.V., if that doesn’t do the trick, then your brain is still in a mushy like state and you should seek further professional help.

So I did. I went to the local health store after the 6th or 7th day to see if they could help figure out a solution, besides anything over three days from work requires a note from your doctor (how does that help me feel like a grown up?). Well, with lucky timing and a long weekend I was able to forgo the doctor’s note but I went to see him anyway because I just wasn’t kicking this thing.

The visit was its typical short quick shot visit. He asked me if my symptoms included coughing, headache, nausea, lack of energy, etc., etc., etc., I said yes and he said you have what everyone has, it is viral so there isn’t much you can do more than what you are doing. He gave me a Z-pack to cover possible bacterial infection, told me to get some Mucinex DM, don’t overdo and continue to get lots of rest. That was it, three minutes tops. I forgot to ask him about my very red and irritated eye so went back in to ask him about it after getting the prescription filled. He said he had noticed it but didn’t think it was too bad and that it should clear up on its own but if it didn’t then come back for more fun and excitement.

I still wonder why I bother with it sometimes except that with all the other things going around I guess I needed the assurance that it wasn’t one of those. Also, if the only way to get rid of it is to get official drugs then you have to go through official channels. I think there might be easier and much less expensive ways to treat yourself for a severe head cold, but then what would we have to complain about. Besides, we only see and think about the tiny co-payment for our treatment and drugs and seldom think about the actual charges for services rendered. It is easier to swallow the medicine in small doses.

So after the visit to the pharmacy for the Z-pack and unwilling to pay their price for the Mucinex DM I headed to the local Wal-Mart to find the Mucinex cheaper and restock up on the 12 hour Sudafed. The only reason I will submit to buying Mucinex is it is the only cough suppressant/expectorant that is in a 12 hour time release formula. Why 12 hour time release? Like the 12 hour Sudafed, it is the only way for me to take medicine before going to bed and have it last through the night. This is worth a lot to a person that is looking for an uninterrupted night of rest without having to wake up every four hours to take another dose of whatever and then try to return to sleep afterward.

By the way, I would buy the generic brands whenever possible and for the Sudafed I can find substitutes but not for the Mucinex. I can get the same medicine in cough syrup but not with the extended time release. The generics are cheaper, sometimes much cheaper and I have had pretty good luck with them so far.

Now comes the sad part. For many years now, you have been unable to buy Sudafed or anything containing Sudafed on your own. You now have to get a card from the shelf and take it up to the pharmacist and request the medicine. They then take your id, and record all your personal information into a government run data base that makes sure you don’t buy too much because that would indicate that you are a drug fiend and are probably running a meth lab. By the way, you are allowed to buy up to 9 grams or Sudafed a month and since I was purchasing a whopping 120 milligrams I was safe to buy my package.

I was feeling a little bit better at the time and thankfully there was no line in the middle of the day so the purchase was not too hard to make, but I have gone in looking for my medication when my head was plugged solid, my nose was running nonstop, and I was coughing up a lung only to find that I still had to pick up the little card and then go to the back of the line and stand for 30 minutes waiting to again hand over my id and go through the background check to see if I was allowed to buy my lousy little pills.

It is interesting to note a few things such as the fact that the original 4 hour pill took two tablets and was 30 milligrams per dose. A couple of years ago I found myself overseas and coming down with this miserable cold but without any of the medicine I usual bring along for just such an occasion. I went to the local pharmacy at the end of the day after our meetings got out in search of some Drixoral (another 12 hour cold medicine that is no longer available) but could not find any. The druggist asked what my symptoms were and offered Sudafed. Limited choice, foreign language and much in need I accepted this as the only remedy available this trip. Besides I was desperate and if I couldn’t find a 12 hour solution to see me through the night then this would be the next best thing.

I took the medicine and it did do the trick. As my head cleared I read the ingredients and noticed that this regular strength Sudafed was 60 milligrams per dose. No wonder it worked. I even shared it with a couple of co-workers that had got some of the same cold. It worked so well for them that they went back for a couple of boxes to take home with them. I kind of wish I had also. Here was grown up medicine, sold by a grown up to a grown up with grown up intentions of how to use it in mind. No hand holding, no back ground checks, no mother may I’s, just a way to treat the same old cold in the same old way with the same old medicine without any fuss or holler. What a novel approach.

The other thing I found interesting about all this is that once the real Sudafed went behind the counter a pseudo Sudafed appeared to take its place on the shelves. It only takes one tablet instead of two and it seems to work fine for the milder cases I occasionally get. But when the really heavy stuff hits then I want the real stuff and now that I know that there is another size regular dose I am not nearly as afraid of overdosing when I really need the help to get over the hump. I don’t take two regular 12 hour together, but I have taken more normal 12 hour dose and then when I have needed it I have taken a pseudo Sudafed as a booster.

I now feel I need to add the disclaimer that I am not advising or recommending this for anyone or anybody, and there is the fact that I am not a doctor nor have I pretended to be one for many, many years now. This is just what I did while practicing to be an adult. It seemed to work for me.

Anyway, after the first week of playing with this, I decided to go back to work. If you are only going to be miserable at home you might as well be miserable at work. I still wasn’t functioning at my best but that is o.k. when you are at work. Just kidding, but it does help with recovery if you can at least attempt to be productive in a laid back if not totally unenthusiastic way.

I did try to be responsible and stayed clear of others, covering my mouth when coughing, washing down my workstation and phone, and washing my hands frequently with Germ-X. No one else at work caught this that I know of so I must have been doing something right.

I did talk to a friend though that said he has had his version of this head cold for the past month. I really didn’t need to hear that. Besides, I think I have turned the corner now. I am feeling much better, can think enough to type a few words and as long as I take it somewhat easy and make sure to get enough rest I am sure I am on the mend. There are two signs that I am over the worst, my appetite for junk food comes back strong, and I have a desire to go out for a bike ride. Both are there. I haven’t gone on the bike ride yet because I don’t want to overdo but I sure have hit the junk food again. I did feel like a bike ride early last Saturday but I didn’t quite make it out. Just as well seeing how after the thought hit me I laid down for a second and awoke two and half hours later. Did I mention how my energy levels were just gone during this whole thing?

As hard as this has been and as long as this has dragged out I am still very grateful that this is all that it was and this is all the longer it has taken. I have had this before many times, and will surely have it again but through it all I know that it will pass and I will mend. I might get worn down from it and I might be disappointed and frustrated from the lack of ability to function as normal but it will pass and I will return.

There are others that I know that are facing a much longer recovery path. I have some very special friends that have had to face illnesses that do not go away on their own, and are not easily cured with a prescription or two. The illnesses that they are living with do not go away in one week or two or sometimes even in a month or year and sometimes longer than that. Some have been dealing with their illness for so long that they can’t remember any more what it was like to be normal. My hat goes off to each and every one of you. You are the ones that make my little periodic bouts with colds become trivial and all my complaining just a whining refrain. You are the ones that teach me what it could really be like.

And you also teach me how to handle it with the master’s touch. It isn’t always easy but somehow you manage to carry on knowing that there are good days and bad, high points and low points, but through it all you carry on. You are the ones that can somehow manage to receive and extend the love all around you in spite of all that you must face. That is the strength and courage that will carry you through anything life throws at you and you will not back down. You stand tall with those around you and carry on.

I have seen it in many of my friends through the years and always hope that I can be counted as friend when they are in need. They have been all ages from toddler to wobbler and each has provided me with lessons I needed to learn. I have gained much by my association with them and I hope that they have also found favor in knowing me. Some have kept diaries of their travails on blogs and I have wanted to site them often but hesitate without their consent.

But I know that they are not the only ones, so I open this up to any and all that want to share your stories with us. Just add comments and web links to this article and let others know what you have faced and how you have coped. This will help inspire us all. And it will introduce a new world of friends, ones that you can share your story with and ones that will in turn share their prayers with you. May your righteous desires be fulfilled as God looks after your needs as I know he has looked after mine.

This is Ed Nef with a view from the Farr West.