Sunday, May 5, 2013

Getting Started In Network Marketing

Choosing a home network marketing business can be a scary and confusing endeavor. If you don’t choose the right company you could be missing out on a lucrative business. Worse, if you choose the wrong company you could waste resources (time, money, credibility, etc.).
I want to put YOU in control of your future so I am going to share with you some quick criteria for evaluating an MLM company.
1. Is the company going to last long term?
  • Ask how the company got started and who started it. Is the originator still involved?
  • Is the company solvent? (meeting financial obligations)
  • Is the company growing? If the company is private (not publicly traded on a stock exchange) this may be more difficult to find, but it doesn’t necessarily mean the company is hiding anything. If there hasn’t been growth since the previous year it doesn’t automatically mean that the company isn’t great, but increasing sales is a plus for the distributors.
  • If the company is over 10 years old, does it regularly ‘reinvent’ itself?
2. Does (or could) the product sell outside the network?
  • Are there consumers who will buy the product even if they are not also distributors? In addition is the product so exciting to consumers that they will want to become distributors?
  • Is the product low quality and/or overpriced or is it a valuable product to consumers? Does it perform as advertised?
  • Can the exact product be purchased from another MLM or through retail? For instance, you can purchase Vitamin B cheaply or expensively. If you are selling an expensive yet high quality Vitamin B supplement can you explain the value and thereby justify the expense?
  • Is there a market for the product? Where? Is this sales niche a place in which you want to be?
  • Have you used the product and do you like it?
3. Will I be rewarded for my efforts?
  • What is the company’s commission or compensation plan?
  • Does the company only reward recruiting new distributors? Or will you get paid commission on products sold? Ideally you want a company that rewards distributors for selling product and rewards developing leaders.
  • Does the company pay too much commission to its distributors? This could be setting up for bankruptcy.
  • Is company growth due to earning a higher position or can it be purchased? If distributors can buy commissions rather than earning them the training will not focus on developing leaders. This will eventually destroy a company.
  • Is the commission plan difficult to achieve but achievable? Hype aside, any business takes hard work. You want a business that pays you well for that time and effort.
4. How is the training?
  • Does the training produce effective distributors? Does the company training create success?
  • Is the training specific to the company and its products?
  • 3) Do you have a team of distributors involved and invested in your success?
  • 4) Can you contact someone in your ‘up line’ for support when needed? Your team should return your phone calls and emails within 24-48 hours. They should work with you to determine your needs and help you through them.
Signs to watch for:
  • Does the company promise fabulous amounts of money for little to no effort? You want a company that will be honest with you about your earning potential. Many MLMs have enormous earning potential but as mentioned before, this comes after hard work and serious dedication.

  • Does the company present a “miracle product”? Does it claim to cure cancer? Is it the ‘fountain of youth?’ Does it end world hunger, disease, and all natural disasters? You want honesty. If the product has some extraordinary claims it should have non-biased scientific research to back that up. If there is no research then the claims should be believable and achievable.

  • Does the company treat you as a ‘cog in their wheel’? Are you just another ‘down line’ distributor who was signed quickly and forgotten? You should be a vital member of a team of people that love their product. 

In conclusion, be diligent in researching your prospective network marketing company. Find a company whose owners are committed to the products that actually enrich people’s lives, a company whose owners value their distributors as their most important asset. Make certain that the compensation plan pays its leadership very well and that there are actually leaders who have reached the top level. Finally, choose a company and product that you can feel pride in representing.
"At LifeVantage, we are here to support you every step of the way as you work to create and live the life you've always dreamed.
We are here with you as you build your LifeVantage business and embark on your journey of personal development helping yourself and others find financial freedom."

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