Publicly Traded vs. Privately Owned

[AndrewHealth]

[ramon3309]

You've brought up a very interesting point. The company I joined is private and at an area convention I recently attended the CEO promised that the company will never go public. Everybody cheered but, being new at this business, it did not quite register with me. I would very much like to hear other's opinions on this issue.

[DeadInToIt]

Going public has it's upside but .....

A company usually becomes a publically traded company to raise
additional operating/expansion capital for growth.

So they go public via an IPO or what ever:

Now the original owners of the company, actually own less of the
company and receive less of the profits.

They are under constant pressure by the Investors and Board Members
to achieve a return for the investors they should be able to reasonably
expect.

So, there is less profit to the original owners, more pressure on the
owners and in many cases, more done to placate the investors than
the people that made the company grow in the first place which is
usually the sales & marketing force.

It's that kind of situation that can lead to commissions being restructured
(Usually lowered but made to sound like it's a good deal for all )
or even worse they start paying bonuses in the form of stock

At least I for one have experienced such scenario's and am very careful
not to get into one of those situations again.

A prime example is Excel Comminications. At one time they were THE
big kahunna when it came to Telecom MLM. Went public and then were
bought by the 11th largest Long Distance Carrier in the world. Vartec
Communications. 6 months later, the parent company took EXCEL into
bankruptcy, all the Distributors end up with no commission checks, and
Vartec ends up with all the customers.

Naturally, there are thousands of public companies that have done
exceedingly well. Very few however (Comparitively speaking) have
been Network Marketing (MLM-?-) companies.

Just some food for thought.

[bu2u.info]

IT has been my opinion private in most cases is better for the dis/rep.Most longterm mlms are private.I wish all reps the best in any real networking op. cheers b