THINGS YOU NEED TO CONSIDER BEFORE JOINING AN MLM BUSINESS
When you have a ‘never to die’ attitude, you can always be a part of an MLM marketing scheme. But, if you don’t know how to find the right MLM company, then you can go through the tips for evaluating the firm properly. Finding the right company won’t make you rich or successful, but you would be on the safe side when you are seeking an additional source of income.
The first and foremost thing, you should look for are the products. While many individuals are excited to become rich, you should know the worth of buying the products. In case there’s less demand, then you would be making life difficult. Look for commodity products which are used frequently. It could either be a shampoo, perfume, personal care items, or even weight loss supplements.
Next, you should search items which would are popular and are used again and again. Repeat orders is always a sure shot way to recognize whether the company follows an MLM marketing scheme. If the item is not consumed, then you have to spend more time in searching for customers. Quite obvious, the product should be tagged with a low price, or else no one would be willing to buy them when there’s no clue about the quality.
Moving ahead, you should look for a company that has earned recognition in the market. Rather than joining a start-up, you should join an organization that has been for at least five years. This actually means that the company is stable and has never been in the history of scams. Additionally, a company is great only when the management team has a streamlined process and a system in place. Certainly, you would keep growing as the company’s reputation has never been tarnished.
Training & Resources
Before being involved with MLM marketing, do check if the company provides training material and a number of resources. Besides, you must check if the company hosts webinars, or has some training tools which can be purchased at a less price.
If the company doesn’t have tools, then you can check whether the upline has some sort of system. Dig a little deeper to observe if the tools are sold for making a good amount of profit. Finally, it’s better to join only when the firm has a free distributor website. The team should offer free training calls, tools and business cards at a low cost.
The Distributor Agreement
When you need to dive a bit deeper into evaluating a firm, you should go through the distributor agreement thoroughly. This is one of the aspects which many distributors tend to neglect. So, you shouldn’t be hasty and be enticed by the face to face conversation. Rather, spend some time in reading the multi-page document before signing it off. To begin with, you should be well versed with the policies and the rules.
As far as the clauses are concerned, these state that you shouldn’t be managing another business. You should also adhere to the rules when it comes to selling products, perfumes or multi-vitamin supplements. See to it that you don’t agree to policies which might prohibit you from online promotional activities. For instance, the company should give you the freedom to post videos, write blogs, or even send emails or newsletters to your acquaintances.
It’s always a better idea to have a lawyer by your side so that he can go through the agreement. Needless to say, you have someone trustworthy and another mind to review everything placed on the table.
Observing the start-up costs would be yet another thing. It isn’t right if you have to spend a lot of money to establish yourself in the market. Ideally, the sign up cost doesn’t cost anything. The prime expense would only be born with the products you would be purchasing and sharing with others.
You won’t agree with what has been stated, but there isn’t any reason to start off with a network marketing business. The fact is that it’s better to consider a company only when the start-up cost is low. In case if the cost is high, then you would be eventually losing many prospects who are keen on joining.Besides, earning commission by just selling an expensive start-up kit is unethical in every way.
The Compensation Plan
Do realize that compensation plans differ from company to company. Never forget to check the levels and when you would be qualified for a bonus. Check for the retailing aspect and not the objective of recruiting new people. This is nothing but a pyramid scheme which is different than an MLM marketing scheme.
When a plan is your concern, you should prefer the uni-level plan for yourself. These are among others which are nothing but breakaway, forced matrix and binary ones.
Financial statements are the best documents which can give you a better idea about the company. Do ensure that the company is debt-free and that the team has cash reserves for business growth in the near future. You should also be able to distinguish between private and public limited companies. While public traded companies bear an interest in stock holders, you should find a reason for joining privately traded companies.
Whichever you join, do study the financial statements a bit more carefully. In almost every case, the company might be flourishing with money or doesn’t have money at all. So, even if you wish to do so, never be a part when the company might become bankrupt a few years later.
Finally, you should know more about the leaders and who has been managing the company. The company should be distributor friendly and should remain transparent at every level. Even when you are not supposed to know, you should know everything about the leadership team. Moreover, you should know the changes from time to time. Never run in the direction where you have to recruit people just for the sake of earning money. Rather, your members shouldn’t be disappointed when they haven’t earned as per what was promised earlier.