How to Buy a Downline From a Company Going Out of Business
A downline is a list of people under your tutelage and sponsorship in a multilevel marketing (MLM) scheme. Because you earn a share of the profits that members of your downline make, it is in your interest to expand your downline.
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Significance
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You may expand your organization by purchasing a downline owned by a failing company. Robert Nogueira, of "Marketing Article Library," notes that this is a more efficient and profitable way of expanding than more customary methods such as telemarketing and home visits.
Considerations
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Research successful downlines in your industry over the Internet; a downline with no history of success is unlikely to be lucrative for you. Approach business contacts to find out whether or not they might consider selling their downlines to you; offer to take them out for lunch while you discuss business opportunities. Assure potential clients that negotiations will remain confidential until after the transaction is complete. Companies may negotiate secret mergers with you to hide financial troubles and prevent representatives from panicking. When this happens, you can gain control of a downline without changing the functioning of the company in any significant way.
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Tips
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Never go into a merger negotiation without performing due diligence, including thorough market and industry research. Learn as much as you can about the history of this particular business so you are prepared to negotiate sales. Do Internet research and read any public records available about the company. Seek the assistance of an intellectual property lawyer to work out the details of your contract and make sure that secrecy measures are legal.
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References
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