Doing investing, Egyptian style

Treading some thin water here, so read between the lines.

Money doesn't grow on trees, but under certain conditions, floats upwards
Image: Gator.com

This is not a posting about the unsettling in the Middle East, although it will ultimately trickle down to both investment and “retail” real estate.  Rather one (or perhaps more) of the investing guru’s you may have heard of or encountered is offering not only real estate knowledge, but the possibility of even more money in the form of nutritional/well being products.  I know this because we have been offered this great opportunity (didn’t take it), have talked with several people who got in at that time, and was reminded again this morning when a young man who is working hard at his business sent me a lovely opportunity note.  I haven’t confirmed with him yet whether it was Company X, but I’m willing to bet that it is.  Company X is running in investor circles.

What do I know?  Those friends of ours who signed up say they get product ALL THE TIME; it is accumulating around their house.  Obviously if they went out and sold it, this wouldn’t be a problem.  However ultimately the issue is not their drive and motivation but the underlying business plan.

Company X’s sales and marketing plan involves minimum orders to be eligible for those big checks you were promised.  By their own financial records however, 87% of their associates never hit or maintain those minimums, hence are never paid for their orders. 

The average yearly income, according to their FY09 statement was $617.  The top of the rung distributors earned an average of $857,865.  If 87% aren’t even getting paid, and the average salary is $617, what sort of percentage of associates do you suppose are approaching the 7 digit mark?

 I do not post this to dissuade you from multi-level marketing.  I am a direct sales person, not only in real estate, but also another very fine company.  What differenciates a good direct sales from a pyramid is several things: 

  • Your compensation should be based on your performance, in other words you need to earn your next rung on the ladder, and not just by having someone else fill out paperwork and pay some money.
  • You should be able to pass up your recruiter in terms of both income and position if you are working hard.
  • If there are minimum requirements for payments and or retention, they should be reasonable.  In my personal opinion, every 4-6 weeks is not reasonable, especially if you’re not a go-getter, but would like occasional income.  Most of the complaints generated by MLM (multi-level marketing) companies is the financial pressure to spend money when you don’t have a customer’s sale slip to back it up.
  • There should be a limit to how long the individual should be able to stay within the system, in orther words a mandatory retirement age.  Monies should eventually be distributed differently, allowing equal access to all who are willing to work.

Regardless of who you choose to work for, sign up with, associate yourself with, or invest in, do your homework.  Make sure the business is sound, the company founders and principals are of good moral and financial standing and there is a track record which can be pointed to which will indicate your chances of succeeding.

Go therefore and make good money!  Do it wisely, do it well and blessings will abound to you.

Ending note – I got a response from nice young man.  It is not Company X, but Company Y.  Now I’ll go check them out!

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