Posted by natureandhealth on January 7, 2012 at 9:50 AM
Network Marketing is truly an exciting business. And there are quite a lot of genuine opportunities out there but not all of them will be right for you. Some you will succeed at and others you will fail. And there are several factors that can determine the outcome of your involvement in any MLM business. I will outline a few things you must consider before joining an MLM company:
- What product/service does the company deal in?: You must feel passionate about the product/service you are offering for sale otherwise you won’t be motivated to sell them or tell anyone about them. And that automatically means you won’t make any money. So my advice is to find a company that has a service or product line that you are extremely passionate about because passion is infectious and motivates the customer or prospect to consider your offer.
- What is the cost of the product/service?: If the products/service are too expensive for those in your social circle, then it’s most likely you won’t have anyone to sell the products to. And this can lead to a lot of frustration. It’s best to stick to products that you know most people around you can afford. That way you are guaranteed repeat business.
- Is there a real demand for the product?: Some companies offer some fanciful products that nobody wants. They may be technologically advanced and have some heavenly esthetic quality. It might even be something that people really need but the truth is no one pays for something they don’t desire. So don’t waste your time marketing things that no one wants unless you don’t mind tying down your money in unwanted stock.
- Do the products deliver on their promise?: The key to success in business is repeat business. And the way to guarantee repeat business is to sell a product or offer a service that adds real value to the customer. This is what will motivate the customer to keep buying. If the company’s products or service don’t deliver, you won’t get repeat business and that’s bad for business. The products must do what the company says it will do and the service must deliver satisfactorily.
- Are you allowed to personally select your products?: If the company compels you to buy products that you know you will have a hard time selling then there is no need to waste your time with that company. If your customers won’t pay for such products then you need to find another company that will allow you to select only products that you know your customers will be willing to pay for.(Check out SWISSGARDE Health & Beauty )
- What is the entry fee?: This is very key to your success in network marketing. Make no mistake about this. You must choose a company that has a registration fee that most people you know can afford to risk investing. It really doesn’t make any difference if you can afford but your prospects can’t. Because if you can afford the registration fee and your prospective recruits can’t, you won’t be able to register anyone, let alone grow a team and earn commissions.
- What is the time lag between ordering the products and delivery? : This is very essential to your success in the business. No customer is going to wait forever for your award winning product to arrive. You’ve got to be sure that the company either has a depot that you can easily get products from or that it is certain that it will take no less than a day or two for you to get your products to your customers ( except in out-of-stock situations). Outside of this condition you’re bound to lose potential customers.
- What is the marketing plan? : I chose to list this as my last point so as to deemphasize the hype that is often placed on it as the sole key to success in Network Marketing. The Marketing plan outlines the cost of registration, how commissions are paid, what qualifies a distributor for the earnings, the criteria for business growth, compensations at each growth level and the activities that produce the best financial output. This is the most enticing part of the business and a lot of people assume that the business will be profitable as long as the marketing plan promises a pot of gold. This is rarely the case. There are several other factors that determine the profitability of a Network Marketing business, some of which I have already outlined. But it’s important that you examine the marketing plan closely and determine firsthand if it’s workable, if the criteria for earning commissions is realistic and if all the other factors I listed above are present.
It’s also important to note that a marketing plan that guarantees quick growth to a manager level, does not automatically guarantee high earnings at that level.