Due Diligenceby Jennifer Underwood Promoter Due Diligence
People seeking a home business venture are drawn by the promise of residual income--that is, ongoing compensation in the future for work you do today. Most home business owners never see a dime of residual income because they cannot attract enough customers who continue to purchase their products or service on a continuing basis. This underlines the importance of conducting a careful due diligence when choosing a business opportunity.
The objective of due diligence is to minimize the risk and maximize returns on your investment of money, time, and effort. There are a number of criteria to consider in evaluating a business opportunity. Among the more important, I would include
1) the market for the company's product or service: is it growing, mature, or in decline;
2) the company's position in the market: is it a leader or a follower, is it growing?, is it profitable;
3) exclusivity or uniqueness of product/service: is it easily copied, what is its value proposition, is it in demand;
4) credibility of the company: years established, is the management team competent and committed, reputation of the company as a whole;
5) customer retention: a high rate is essential for long term growth and stability of the company, and for development of a meaningful residual income for yourself;
6) compensation plan: look for a minimum payout of 40% of revenue; 50% is better, and be suspicious of numbers that seem too high (i.e. over 60%), which could signal a problem with stability.
"The purpose of a business is to get and keep customers."
Residual income is possible only with a high customer retention rate. The company has a retention rate in the high ninety percent range. Its independent representative retention rate is 77% (vs. the direct sales industry average of less than 10%).
Another telling statistic: on average, only 3-5% of direct sales reps received any compensation last year. But 77% of company representatives (called Internet Safety Advocates) received commissions in 2006.
The business has distinct and unique characteristics which create advantages for home business entrepreneurs. Here are a few of them:
â€¢One-of-a-kind. No other company is offering an enterprise-grade managed security service. Unlike packaged consumable products, you can't buy the same thing at the local supermarket or drug store. The company will always have the "first-to-market" advantage as competitors enter the arena. No other MLM is doing what this company does.
â€¢Instant results. Customers see the results the moment the software is installed, and they experience the service immediately. If the new customer doesn't engage with tech support during the installation process, he or she will within a day or so because tech support calls every new customer to make sure everything is ok. Health and wellness products take time to take effect.
â€¢Affordable. Although it is a premium service, the One-Stop Security Solution is actually less costly than over-the-counter pieced-together alternatives. Entry level software solutions plus the cost of tech support and maintenance plus Identity Theft insurance coverage can add up to more than double the subscription rate offered by the One-Stop Security Solution (less than 50 cents a day).
â€¢No risk. Customers are able to validate the need for the service before they have to make a decision (the free spyware scan). Even after the initial decision to try the service, customers have a 30 day money back cancellation guarantee.
â€¢Customer retention. The instant visible results, experience with tech support, and affordability of the One-Stop Solution lead to a customer retention rate of 96%. The only way a home business can generate long-term residual income is through a high rate of customer retention. Most MLMs never deliver on the promise of residual income because customers simply don't stick.
â€¢Market size. There are 200 million Internet users in the U.S. alone (a billion world-wide). Fewer than 10% of them have adequate protection, or any protection at all. Tens of millions of individuals and small business owners will be signing up for professional security service over the next few years. This is the first company to make it possible for home business entrepreneurs to enter this incredibly huge market.
â€¢Technology driven. The great business fortunes of the past few decades have all been technology driven. The technology of security is the newest wealth creator, and this company already has a six-year head start in applying this technology as a multi-layered managed service. The technology of security is creating a paradigm shift in the way people stay safe.
â€¢Ground floor opportunity without the risks of a start-up. Invisus has an established track record of success and profitability.
â€¢Simple, strong compensation plan. The percentage of revenue paid out in commissions across the direct sales "industry" averages 38%. The company pays out 50% of customer revenue to its independent representatives ("Internet Safety Advocates," aka "ISAs"). The simple "uni-level" structure allows unlimited front-line sponsorship legs. The plan makes it relatively easy for anyone to earn a good part-time income or an exceptional professional income, depending on one's goals and commitment.
â€¢Low overhead. There are no volume requirements to be eligible for commissions. There is no overhead load, other than your own service subscription of $14.99 a month. No monthly charge for a replicated website. The company provides it free. No check processing fees. Your commissions are deposited directly into an account with ProPay, where you have instant access and can transfer the funds to your own bank checking account. No push to buy company marketing materials.
â€¢Effective training. The company provides an exceptional, professional hands-on training program which includes the personal involvement of individual leaders on the immediate 3 levels above the new ISA. Our Safe Web Action Team offers additional live training in prospecting and closing. A weekly training on market and product knowledge takes place every Saturday morning.
written by: Bryant Sandburg ISA/Invisus Direct
Created on Dec 31st 1969 18:00. Viewed 0 times.
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