Why is it a problem?
I will give you the facts and you make a decision if you believe what I'm saying to you today.
When a company tells you this, take time to think about this first. If they are paying you 100% commissions then how will they make money?
Answer: A company has to make money to stay in business. Right? Of course they do. What they will do is charge you a monthly fee for something that will bring money into the company.
Usually it is an affiliate marketing program. Some companies will even tell you they are not an MLM company. This may be true for them to let you think that they're not. What it really is, is an affiliate program. They let people sign up for free and then offer them an option to participate in their affiliate program. They will tell people that as an affiliate you can earn 100% commissions.
Here's where it get's tricky, many of these programs are pre-launch businesses and what this means is, they are new. Many times they don't even have a product or service in place for you to earn any commissions until later. That's why it's in pre-launch until they get the system working right and a pay plan that will encourage you to promote their program. Next they tell you when someone joins under you, they will pay you for doing this.
Wait a minute! Something is wrong with this; this means the only way you will make money is by sponsoring NEW people in. Okay nothing is wrong with that except this means you can't retire one day. This is the wrong business model.
If you don't sponsor anyone in then you won't make any money. The company won't pay you, and most likely the company won't be in business very long if nothing is happening. You understand what I'm saying to you? This will happen when people have the option of signing up for free without being in the affiliate program, but what good is that if they can't make any money? They just get on someone's list and will be getting emails from the company trying to get them to upgrade. Now it is up to sponsor to let them know why they should do it. The reason is so they can make money when they do. This leads to the sponsor having a money agenda. NO relationship at all and the person will feel this and think "I have to do this too." They'll be gone so fast and eventually forget about the company.
In the meantime the company is looking for a product you can sell because they know that this is not going to work for long. They need a product or service so you can earn that 100% commission they guaranteed you will get.
100% Of What?
If the company has no product, there goes that 100% commission they talked about. It doesn't exist and all you're doing is getting people in and they are paying you such a small amount of money for doing this (Usually $10 - $30). Keep in mind the company can only pay you a small amount of the monthly fee they are getting each month from people you sponsor. They need to have something coming in or they are out of business and YOU will be looking for another business opportunity.
Many times these companies resort to offering stuff that can be found on the internet for free. The cost is not value priced at all. They expect you to buy and then tell others to do the same thing so you can recoup the money you paid. Something smells fishy here, if it don't it should.
Here's the thing, you bought a high priced product or service for say $100, and they tell you it's valued at $300. They do that to make you think it's super great. In actuality it's probably not worth the $100 you spent on it. How can you tell someone it's valuable if you don't find it to be true and have to get information elsewhere. Uh oh something is wrong here.
Now that 100% commission doesn't exist. What else can you do except find a new company and start all over again. Frustration sets in because you just lost money and nothing is coming in.
Here's my advice when looking for your new business opportunity.
Do your homework first, by reading your contract (policies and procedures) first, evaluate the compensation plan, make sure their product is value priced and people don't have to sign up to buy it from you. (In business you need customers and partners to have residual income.) You must check out the people who are running the company and be sure they have a system in place to generate targeted prospects for you.
Also you MUST get yourself a mentor, and this is what I do. I will help you to do all the things above so you will find a business opportunity that will earn you money online.
Just do this now and get what you need to be successful in network and internet marketing. This is FREE MLM Training and Internet Marketing Training
Mentor with a servant's heart