Earn and Keep More of Your Money
Through an AMSOIL Dealership

Multi-level marketing (MLM) has come a long way since its beginning in the 1940s, when California Vitamins introduced the concept as a way to market their nutritional products. Amway evolved directly out of California Vitamins, selling soap products through independent distributors who got paid through commissions, as well as through the sponsorship of new distributors. Today, multi-level marketing is a $20 billion industry, and it continues to grow at a rapid pace. MLM companies have come and gone over the years, with only the solid, reputable ones surviving in the long term. Today, high quality products, good company support for dealers and a solid reputation for integrity are still the traits found in successful MLM companies.

Significant MLM Benefits
People become involved in multi-level marketing for different reasons. Unlike starting one's own independent business, the start-up cost for entering an MLM opportunity is minimal, often requiring little more than your time and hard work. The opportunity to be one's own boss also appeals to many people. You can put as much time and effort into your business as you see fit. You may decide to just work it part-time or you may jump into the opportunity full force.
People living on a fixed income find good MLM opportunities especially appealing. As many retired people find Social Security benefits inadequate to live on, many have found themselves in need of acquiring additional income. Getting involved with a solid MLM company is the perfect way, as it affords retired people the luxury of working their own hours, while also giving them the money and time to enjoy their golden years.
People looking ahead to retirement also find MLM opportunities particularly attractive. Building a healthy MLM organization now ensures a healthy residual income for the future. MLM opportunities also give people something many jobs cannot: job security. A recent slowing down of the American economy has people worried about their current positions. Getting startled in an MLM opportunity gives people something to fall back on should their job be in jeopardy. It gives people peace of mind that their family's needs will be taken care of.

A New Incentive
Today, tax incentives have emerged as yet another significant reason to jump into multi-level marketing. Because working Americans setting up home businesses can easily save an average of $5,000 in taxes they pay on their current income the "tax incentive'' angle is a significant selling point in attempts to register new AMSOIL Dealers and is an excellent reason for Preferred Customers to upgrade to Dealer status. (To become an AMSOIL Dealer, Preferred Customers can call 1-800-777-7094 and ask for a Preferred Customer Upgrade Form or print and fill out the form in the "Preferred Customer Orders'' section of the AMSOIL corporate website.) Virtually all Americans are seeking some kind of tax relief, and self employed business people have more tax deductions available to them than any other legal entity. The tax savings are immediate, starting the day a person signs up.
According to Direct Sales Journal, the following is just some of the tax relief home-based business owners enjoy:

1) All medical expenses can be converted into business deductions and written of at 100 percent. The average tax benefit here is $2,500 per year.
2) The average home-office deduction is $2,400.
3) Home-business owners can hire their children and pay them up to $4,500 in wages per child, and write it off in full as a business expense.

By adding these three incentives together, a qualifying family of five could potentially have a total  of $18,400 in additional tax write-offs. An MLM business owner could also immediately keep an additional $400 to $600 a month from his or her employee paycheck. By stressing the tax benefits of owning one's own business, the country's largest multi-level marketing cosmetic company increased distributor retention by a whopping 200 percent in one of its regions. They conducted a year-long beta test to see how many distributors who were coached in home-business tax benefits, would remain active. The dealers were given only some basic tax knowledge and supplied with compliant tax documentation' tools. The tax savings were so significant, the distributors indicated, "We can't afford to quit''.
Very few distributors in any company, however, are taking advantage of, or are even aware of, the substantial short and long-term savings available to them. Using the "tax proposition'' method to drum up interest in the AMSOIL opportunity can be quite effective in registering potential Dealers. People who may have qualms about selling a product they may not know much about may be initially persuaded by the tax benefits of owning a business. Prospecting should be simple and lead to an invitation to present a solution to the "underpaid and overtaxed'' problem. Asking potential Dealers questions like, "How hard do you work for your money?'' and "How much of your income would you like to keep?'' help you capture interest, as well as an opportunity to present all the other benefits of becoming an AMSOIL Dealer. But remember, Dealers must be actively building their businesses for tax deductions. If Dealers are selling product, are registering Dealers, Preferred Customers or accounts that are generating commissions, they are actively building their businesses and may qualify for tax deductions. We recommend you discuss these issues with your accountant or tax adviser.

The AMSOIL Opportunity
With almost 30 years of experience in providing the highest quality synthetic lubricants and filters, AMSOIL is a recognized leader and provides Dealers with an opportunity to sell products with no peers. AMSOIL offers its Dealers top notch company support through a wide selection of high quality, regularly updated sales literature and tools, as well as hands-on technical and sales training taught by AMSOIL professionals. The MLM opportunity presented by AMSOIL is unique in that Dealers have numerous ways to build their businesses and earn money. Dealers may choose to focus primarily on one or two areas or they may find that a combination of the following programs works best for them:

Personal Retail Sales
AMSOIL Dealers purchase AMSOIL products at Dealer cost and sell them at retail price, either through face-to-face selling, the AMSOIL retail catalog or the Internet. Dealers earn the retail profits and commissions.

Sponsoring
AMSOIL Dealers build their "downline group'' by sponsoring new Dealers and Preferred Customers. The commission value of your downline's purchases are added to your own, earning you a bigger commission check.

Retail on the Shelf, Commercial and Fund Raising Accounts
Retail on the shelf accounts are businesses selling AMSOIL products in their stores or quick lubes. Registering retail on the shelf accounts as AMSOIL accounts earns you 20 percent cash commissions on their purchases (15 percent on XL-7500 oils and Hastings Filters), as well as 20 percent of their purchase as commission credits. Commercial Accounts are businesses using AMSOIL products in their equipment. Registering commercial AMSOIL accounts earns you 10 percent cash commissions on their purchases, as well as 20 percent of their purchases as commission credits. Fund raising accounts are legally organized non-profit organizations that sell AMSOIL products as a means of generating income. Registering nonprofit organizations as AMSOIL fund raising accounts increases your commission credits and commissions, as well as expands your customer base.

"In a conventional company, you are their employee. In network marketing, you are their partner: You are a volunteer; an independent contractor working in your own business --- and you are your own boss."

Jeffrey Babener

Network Marketing Window of Opportunity

FACTS ABOUT
NETWORK MARKETING

1. By 2000, it is estimated that there will be 40 million home based businesses.*
2. Three out of every ten working Americans do a significant amount of work from their home. **
3. Ninety percent of the five to ten million network marketers are part-time, but more are making it a full time career. ***
4. Sixty to seventy percent of all North American households have purchased goods and services from network marketers. ***

* Starting and Operating a Home Based Business by Rowan Wakefield
** The Wall Street Journal's Guide to Marketing in the 1990's
*** Network Marketing Window of Opportunity by Jeffrey Babener

MULTI-LEVEL MARKETING: GOOD VS BAD

• Network/multi-level marketing is big and getting bigger. Why is this marketing method such a powerful tool?

• How can you tell a legitimate company, like AMSOIL, from one that's just out for you money?

Though it's been around for over fifty years, network or multi-level marketing (MLM) didn't really catch on until the late eighties and is expected to gain momentum well into the next millennium. According to attorney Jeff Babener, author of Network Marketing Window of Opportunity, "It is estimated that network marketing is a $20 billion industry with one in ten households in the United States now involved. Many states have adopted legislation recognizing the legitimacy of network marketing, and the IRS publishes its own booklets specifically for network marketers."
WHAT IS NETWORK MARKETING?
There are many large, well known companies that utilize network marketing. The logistics of an MLM business are quite simple. For example, AMSOIL creates, manufactures and packages synthetic lubricants. All of the business aspects of creating these products and running a manufacturing business are the responsibility of AMSOIL. The only thing AMSOIL does not do is sell the product.
The sales responsibility is given to registered AMSOIL Dealers. Dealers make their money by buying products at wholesale and selling them at retail, distributing catalogs or registering commercial and retail on-the-shelf accounts. The greatest success comes in recruiting others to become Dealers, creating a "network." Commissions are made from the profits of all the Dealers in a personal network.
According to Babener, the main difference between a salesperson in a conventional company and a MLM company is that, "In a conventional company, you are their employee. In network marketing, you are their partner. You are a volunteer; an independent contractor working in your own business -- and you are your own boss." Their goals, however, are very much the same.
WHY IS IT POPULAR?
Babener says its popularity can be attributed to its win/win/win philosophy. The corporation wins because "Network" marketing can significantly reduce the 'conventional' costs of doing business -- such as advertising, merchandising and selling expenses. Also the product often penetrates new, untapped markets." The consumer wins because "Network marketing offers unique and often superior specialty products not available through normal channels." They also have the convenience of shopping at home and can receive discounts for loyalty or for recommending the product to others. And, the entrepreneur wins because "Network marketing offers the most accessible, lowest cost business start-up possible. It allows the entrepreneur to set his own hours, have immediate tax breaks and have powerful earning potential.
GOOD VS BAD
Because of the vast number of MLM companies in the world today, it's inevitable that some businesses will abuse the MLM system. Furthermore, it is possible to get involved in the wrong company.
A business could be a Fortune 500 company, yet it may not be suited for a particular salesperson. A person who is enthusiastic about a product and truly believes in its effectiveness will, of course, be a better spokesperson for the product. One mistake people make in working for an MLM company is trying to sell a product they care nothing about. If AMSOIL Dealers did not think that the products were indeed exceptional, trying to prove they are to customers would be a bit of a challenge. If the salesperson doesn't believe in the product, why should the customer?
Besides making the correct personal decisions regarding the product, Babener says there is a set of criteria to consider whether the company itself is legitimate.
Since network marketing is still relatively new, "The way in which it is defined and regulated varies considerably from state to state." Therefore, it's up to the entrepreneur to learn to tell the good from the bad.
"Product and Price" Consider if the product is of high quality and fairly priced. When AMSOIL Guarantees that its synthetic lubricants have extended drain intervals and are superior in extreme temperatures, Dealers know this to be true due to the numerous tests done and testimonials from satisfied customers. An illegitimate company will have no such proof.
"Investment and Inventory Requirements" When a company asks for a large up front investment with nothing in return, it's generally a sign to be wary. Many companies, including AMSOIL, require a minimal start-up fee, but any company that asks for a large fee may be trying to make a profit from the new Dealer instead of selling product. Also, if a company requires the salesperson to buy a certain amount of product in order to become a Dealer, it is, again an attempt for the company to try to make more money off the salesperson than the potential customers. Many legitimate companies do require a minimum level of activity to maintain a Dealer status, but do not require a certain amount of inventory to be kept on hand. AMSOIL doesn't even require a minimum level of activity to maintain Dealer status; only a certain amount of product must be sold a month for the dealer to gain a commission.
"Buy-Back Policy" When an AMSOIL Dealer wants to leave the business, AMSOIL will buy back, within 30 days and minus a small restocking fee, any current and marketable AMSOIL products considering they are in resalable condition. Any good MLM company should. "In fact," Babener says, "this policy is required in states which have adopted Multi-level distribution statutes.
"Distributor Activity" AMSOIL provides literature and promotional materials to make it easier for the Dealer to train and manage other Dealers in their network. While AMSOIL does not require a Dealer to actively develop and manage their network, it does strongly encourage them to do so by providing the necessary tools. A successful company will take these steps to help Dealers nurture their businesses.
"Earnings Representations" Finally, any company that guarantees a specific income may not be a legitimate MLM business. AMSOIL does promise the potential to make a substantial income, but does not make any guarantees. Unless the claims made by a company are, according to Babener, "based on a verifiable track record of the average earnings of distributors in a particular geographic area," the company is probably using the income promise as an unsubstantiated enticement.
Companies that utilize network marketing, like AMSOIL INC., are not fly-by-night organizations. Many are solid, reputable companies that are involved in one of the fastest growing business industries today. As Babener says, "Network marketing is a powerful step in the evolution of the free enterprise system.. a way that anyone, anywhere, from any walk of life can take part in the Entrepreneurial Revolution that is sweeping America and the world.