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Multi-Level Companies:

What to Avoid, What to Expect, and How to Exceed

In tough economic times people inevitably begin to worry. The security that once marked American jobs cannot be taken for granted, and people can feel oppressed by the uncertainty of their employment futures. Multi-level marketing (MLM) provides individuals the opportunity to control their own destinies. Whether a person is looking for a career, part-time employment or the security of additional income, multi-level marketing is an attractive option.

What to Avoid

MLM companies have been around for decades and have offered viable and profitable business ventures to tens of thousands of independent business owners. AMSOIL INC. adopted its MLM program in 1973 when, unfortunately, unlike AMSOIL some MLM companies took the principles of multi-level marketing and twisted them for their own profit at the expense of hopeful and hard-working distributors. As a result, many would-be successful independent business owners have been turned off by the opportunities that legitimate companies offer. Because of this, the Federal Trade Commission (FTC) stepped in to help entrepreneurs differentiate legal, legitimate MLM companies from their less-than-honest counterparts.

AMSOIL Dealers should be aware of the factors that separate the good companies from the bad and be prepared to communicate that information when sharing the AMSOIL business opportunity with potential AMSOIL Dealers.

The FTC warns would-be business owners about marketing plans that offer to pay commissions for recruiting new distributors. Most states outlaw this practice, known as “pyramiding,” because plans that pay commissions for recruiting new distributors, without product sales, will eventually collapse when no new distributors can be recruited, resulting in significant monetary loss for everyone involved, except for those at the very top.

The FTC looks at where revenues are generated to help them determine the legitimacy of an MLM company. A multi-level compensation system funded primarily by payments made for the right to participate in the venture (ex. Tape, books, etc.) is an illegal pyramid scheme and should be avoided.

The FTC also cautions against plans that require new distributors to purchase expensive inventory to become involved. This often results in distributors becoming saddled with a significant amount of inventory that is essentially worthless. Many plans promise miraculous results of guarantee enormous monetary earnings, and it is important for distributors to ask for hard proof that the claims are legitimate and substantiated.

As an AMSOIL Dealer, educate yourself about the dangers of illegitimate MLM companies. Being able to put potential Dealers’ fears about MLM companies to rest from the start will help establish a relationship of trust and reinforce the legitimacy of the AMSOIL business opportunity.

AMSOIL Preferred Customers who are considering changing their status to Dealers can be assured that AMSOIL represents the highest standard in multi-level marketing.

What to Expect

There are several important qualities that set legitimate MLM companies apart from their not-so-legitimate counterparts. First, the company must have stability. An established, time-tested company will already have a strong market presence and, therefore, be more stable. Newer, untested companies are more risky. The best companies work hard to establish solid reputations. They look to the future and commit long-term goals. They pay their bills and commission checks on time and reinvest money for improvement and growth. In addition, the good MLM companies employ experienced management and skilled technical people.

Legitimate companies provide a real product or service that is in demand by the general public. The product must perform as intended and the better the product, the easier it is to sell. Not only does quality attract consumers, it inspires confidence and enthusiasm in the distributors. It’s best if the company manufactures its own product line to insure quality control and pride. It also helps if the product line is large and diverse, and the products must be competitively priced.

Company support is also a key indicator of a legitimate MLM company. Knowledgeable distributors are successful distributors, and good MLM companies put great effort into training. They provide a wide selection of literature and educational tools to enhance company and product understanding. Good MLM companies also provide direct access for dealers and distributors, allowing them to become, in a real sense, part of the company. Open phone and email policies, conventions and annual meetings provide the personal contact that is important for the training and morale-building that is necessary to succeed in the multi-level industry.

Good MLM companies make only legitimate and supportable claims. They don’t promise instant riches, and they provide accurate compensation materials to distributors. With good companies, the facts speak for themselves.

Finally, the best MLM companies have dedicated dealer forces. A good company inspires in dealers a confidence which leads to credibility and professionalism. Good people are attracted to good companies, and they find security in knowing that their commitment pays off.

The AMSOIL Opportunity

In 1972 AMSOIL INC. developed the world’s first API-rated synthetic motor oil, a year later developed its MLM plan and in 2008, the company celebrated its 35th anniversary as an MLM company. The solid MLM foundation that AMSOIL was set on has been central to the company’s success and longevity.

AMSOIL established all of the critical components that separate the honest and profitable business opportunities from the scams and schemes that have surfaced in the marketplace. Because of that, the opportunity available to AMSOIL Dealers is stronger than ever.

AMSOIL products are second-to-none in the market. AMSOIL tests its products against all competitors and releases the data to support the product claims. Not only is AMSOIL well known for the highest quality products, but also for the company’s reputation with Dealers and suppliers. AMSOIL has never missed paying a bill or commission check, and the majority of company profits are reinvested in the company for improvement and growth. This growth can be seen in new products released, the advancements at the AMSOIL facilities and in the growing number of AMSOIL Dealers and customers.

AMSOIL firmly believes that knowledgeable Dealers are successful Dealers and puts great effort into Dealer training. Through the Action News, the wide selection of literature items, training materials and thousands of pages of web content, AMSOIL is diligent in the education of Dealers. In addition, AMSOIL University, annual conventions and regional sales meetings give Dealers the opportunities to learn directly from the talented and experienced AMSOIL staff.

In addition to educational support, AMSOIL offers Dealers and customers direct access to the company through phone and email. Maintaining open communication is paramount to success for the company, Dealers and customers.

How to Succeed

MLM companies have traditionally experienced growth during times of economic downturn. When they are unsure about their job security, many people are interested in starting their own businesses.

As AMSOIL Dealers, the only cutbacks, layoffs or income limitations are self-imposed. AMSOIL business owners set their own work schedules and can choose to specialize in areas that are of high interest to them or choose to challenge themselves by branching out into new and exciting territory.

AMSOIL Dealers are flexible and can prioritize as they see fit, and they are accountable to themselves for any success they achieve. Working from home reduces costs associated with commuting to work and adds more productive working time to the day.

“Maintaining a high activity level is crucial to success in selling, whether the economy is good or bad,” said Rob Stenberg, Director of Dealer Sales. “AMSOIL Dealers who have a high level of activity, who prospect every day, give presentations every day and give it their all each and every day have strong ‘sales muscles.’ Those sales muscles stay strong because they are exercising them through the use of talent, skill and hard work. The reality is that those Dealers with strong sales muscles will be able to adapt the fastest to any situation they encounter. In other words, this is not the time to slow down, but time to speed up.”

Premium AMSOIL Synthetic Motor Oils offer the longest drain intervals on the market, unsurpassed protection and performance that effectively extends equipment life and improved fuel economy, saving customers money at the pump and reducing the nation’s dependence on foreign oil.

"AMSOIL INC. warrants that the use of its lubricants will not cause mechanical damage to any mechanically sound equipment when AMSOIL INC. products are used in full compliance with the company's recommendations and instructions."

FULL WARRANTY

AMSOIL synthetic motor oils are formulated to surpass engine test specifications, offering protection far greater than competing motor oils for extended drain intervals. Most synthetic oil manufacturers make no claim to extended drain intervals, deferring to the maintenance schedule provided by the vehicle manufacturer. With its unparalleled oil and warranty program, AMSOIL offers consumers unprecedented protection and economics.

Another AMSOIL First

More than 20 years ago, AMSOIL began using the NOACK volatility test as a comparison tool and measurement of quality. Back then, nearly every oil tested side-by-side with AMSOIL synthetic motor oils failed, and those that passed barely squeaked by. Other oil companies paid no attention to NOACK results until Ford Motor Company made it a requirement for service fill oils, validating what AMSOIL had said all along.

AMSOIL Now An ISO Certified Manufacturer
AMSOIL recently received ISO 9001:2000 certification of our Quality Management System (QMS). NSF International Strategic Registrations is the registrar that has verified our QMS meets the requirements of the ISO 9001:2000 standard, the most widely utilized quality standard throughout the world for quality management systems. ISO standards are used by over 300,000 companies worldwide setting rigorous standards for businesses, government and industry.

ISO 9001:2000 is applicable to any manufacturing and service organization providing a framework for system development that focuses on the customer, quality system performance and ongoing improvement. AMSOIL received ISO 9001:2000 registration under the scope: synthetic lubricants blending, packaging, and other fulfillment directly associated with lubricant product.

The ISO certification puts AMSOIL in line with some of the most efficient companies in the world. It is further assurance that the products and services AMSOIL provides will continue to maintain the high level of quality the company always demanded.

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