In order to absorb what I’m going to share you have to put aside any preconceived opinions that you have about network marketing or the MLM industry. Just for a few minutes. I am well aware of all the arguments against the industry and I’m not going to debate them. I’ll just tell you that regardless of the perceived downsides of the industry, network marketing is the best business model for credit repair. And, I’ll tell you why.
Let me first address the challenges that the credit repair business presents. They fall into 3 major categories. Federal and state regulations, the scope of providing service to customers, and competition from large companies.
Federal and State Regulations
The Credit Restoration Organizations Act (CROA) restricts you from charging fees to a client before service is provided unless you are a bank, credit union, attorney, or 501(c)3 non-profit organization. They do allow you to charge a nominal account activation or set up fee. How this affects you depends on how much profit you want to make in the business. There will be more on this later when I discuss competition in the industry.
State regulations (in most states) require you to purchase a surety bond. If you want to do business outside your state, you must purchase a surety bond in other states as well. These bonds are a continuous expense, not a one-time fee.
In addition, the federal government and each state have its own truth in advertising laws that you must be aware of and comply with. Failure to comply with these advertising laws could result in very stiff penalties. States like Georgia and Utah have recently severely cracked down on credit repair companies advertising in those states.
Providing Service to Clients
Next, and maybe most importantly, has to do with the scope of providing service to a client. I realize that companies that sell dispute software like TurboDispute, DisputeSuite, and CreditRepair Cloud make it sound like it takes no time at all to pull credit, analyze credit reports, and draft dispute letters. First of all, it takes more time than they tell you. But that’s not the full extent of the work in the credit repair business. It’s not even close. You need to market and find prospective clients. Then you need to sell to those clients. People don’t typically click a link and sign themselves up for credit repair. This isn’t like buying a product from Amazon. Then you need to deal with disputes. Then you need to provide customer service and support once the service is underway.
I can’t begin to tell you the number of people that have tried to do this on their own that have called me. They have given up on trying to bring in enough clients to pay the bills and provide service to that number of clients.
Can You Compete Against the Big Companies?
Then there is the issue of competition from large companies that dominate the industry. Companies like Lexington Law, CreditRepair.com, and Sky Blue Credit Repair. They dominate internet advertising in every market in the country. They have the money to outbid you for a position on Google.
But that isn’t the biggest challenge you have when competing against big companies in the credit repair industry. The biggest challenge is providing the type and scope of service that companies like ours can provide at a price that is perhaps less than, or similar, to what you can afford to charge. You might be able to provide credit repair (removal of negative items from credit reports) for let’s say $80 a month. We provide that along with 11 other financial services for $89 a month. And, we do it with an A+ BBB rating and accreditation, and a NACSO certification. That’s hard to compete with.
Why Network Marketing and Credit Repair Works
Now that I’ve discussed the challenges in the credit repair business let me share with you why network marketing is the best business model for credit repair. In a nutshell, it’s because our business model overcomes every single challenge I’ve described above. We have the resources, technology, and infrastructure in place. All you need to do is plug into it and you’re in business tomorrow.
We overcome state and federal regulations because our credit repair company is a 501(c)3 non-profit organization. Therefore, we are as stated above, exempt from CROA regulations. As an independent agent for our company, you can charge up-front fees (the up-front fee we charge is nominal, just $99) and you can do business in all 50 states without purchasing a surety bond.
You still need to follow the truth in advertising laws, but our company provides you with information on compliance with those laws. And, we make available to you legally approved brochures, flyers, folders, business cards, social media templates, phone apps, and an online sales funnel system. All of it complies with the laws in all 50 states and is available to you from day one.
Have Time to Bring in More Business
Now let’s address providing services. With our business model, you don’t provide services. Our staff does that for you. Not only are they trained at a high level to provide client services, but they also provide customer support for the length of time the client is on service. This allows you to find more people to sell services to. It frees up your valuable time so you can maintain another business or work the credit repair business part-time until you can make it a full-time business.
Now let’s talk about competition. By working with us as an Independent Agent you will be providing more services than any other company in the industry for the same price or less than the big companies provide credit repair. This allows you to compete with the small company in your area and the largest companies in the country.
Use Leverage to Build Your Business
But this is the biggest reason why network marketing is the best business model for credit repair. It’s because the profit margins in credit repair are small. You can’t charge much more than $100 a month and compete. So, given everything I’ve shared above how many people do you think you can bring in on your own and provide service? How much will those clients be paying you to do all of this? What if you want to take some time off or you get sick? Who’s going to run your business and what are your profits going to look like?
With our network marketing and credit repair business model, you can build a team of other independent Agents and get paid on their production. You can build it as small or as large as you want. In fact, you don’t have to bring in any Agents or build a team at all. But if you do that’s where the true substantial incomes in this industry are anymore.
Build True Residual Income
People come into the credit repair business because they think there’s residual income. There’s only temporary residual income until your client stops paying. No client is going to pay for credit repair any longer than they need to, and sometimes they stop paying before they should.
When building a team of Agents, you build a true residual income. Because when you stop working for any reason your Agents do not. It does take time to build that residual. It doesn’t come overnight. But once you’ve built it, it comes each and every month. I had to take a couple of months off in 2017 for major surgery. I also slowed down in 2018 to fully recover. But my checks didn’t because my team didn’t.
Network marketing has its flaws. No doubt. But for the credit repair business, it provides the solution to so many challenges in this industry. You don’t have to put out a huge expense to get into the business. And, you can get started today for as little as $288.00.
Find Out the Details
If you’d like to find out all the details visit our Credit Repair Business Opportunity page and watch a 30-minute video. If you like what you see, and I’m sure that you will, click the icon just under the video to book a phone appointment with me. We’ll discuss each and every question you have. I look forward to that conversation.