Using A Risk Based Criteria Matrix

To understand the Risk Criteria matrix in a business, one must first understand what it is all about. When you are a newbie in MLM or Multi-level marketing (MLM), you have to learn and implement risk management skills. Risk can be per product, brand, or level of participation in your business. Many formulas could be used to evaluate the risk in an MLM opportunity. Still, they are not very effective or do not give enough information for good decision-making in most cases.

The risk level is the concentration or amount of risk that the average new distributor incurs before the average sales are made. The formula used to measure this risk is called the Risk-Based Matrix. In this risk-based matrix, you have to see how much money is invested in a particular opportunity and the amount of risk per action.