When you Join an MLM, it should not be an emotional process. You must assess the company and yourself. You must recognize what the company is all about and why you want to do this. Before you join an MLM company, you should appreciate that are starting your own business. It is a very big step. If you don’t understand anything regarding the company and you don’t truly know why you want to do this, don’t do it.
What To Find Out Before You Join An MLM
OK, let’s presume you areeager to begin looking at MLM companies. Here are 7 questions that must be answered to your satisfaction.
1.Is the company a pyramid scheme? A Network Marketing company that has no product or service to sell can only make money by signing people up. This is [the definition of a|a} pyramid scheme. Certain regulators also say that a company with a very basic product at an unjustifiably high price can also be a pyramid scheme. Product sales is where residual income is developed. This entire revenue stream missing from pyramid schemes; and they are also illegal. You have to be aware of this before you join an MLM.
2. How many years have they been in business? A new Network Marketing/ MLM company can turn out to be successful, but a company that has been around for a while is probably more stable. Do not join an MLM until you know this plus your own tolerance for risk. MLM’s are the same as a conventional business in this respect. I suggest at least 2 years in business, and I truly like 5 years better. These companies will have an even better shot at being on sturdy financial ground.
3. Does the product have value? Is it something people might want to buy? Would you want to get it if you were not a part of the company? If you don’t want it, why would anyone else? Why would you join an MLM business if you won’t use the product? Is the product or service overpriced? Can a customer for a lot less money elsewhere? If the product is priced higher, can it be justified?
4. What are your out of pocket costs? There are just 2 types of cost. The upfront cost to join an MLM, and the monthly to stay in one. Is it too high? Is there a way join with a lesswer initial cost and move up as your income increases? What is the monthly cost? Keep in mind you will have to buy some of the MLM company’s products on a monthly basis.
5. Is there a good Residual Income? This comes from the money distributors and customers pay for products and/or services. Will the products or services create an ongoing residual income or are they a one time thing? As you move forward through the company, how soon can you see significant residual income? The best reason to join an MLM is residual income. Don’t join unless you get answers you like.
6. Inventory? If the MLM you are evaluating sells products, is it a requirement to keep an inventory of products in your home? Must you pay for them all at once? Is there a policy about selling inventory?
Don’t Join An MLM If You Don’t Understand Marketing
7. Can your upline teach and train you? There are 2 areas you’ll need training on. The company itself, and marketing. You must know about the company’s, products and/or services, pricing, how to use your back office, etc. These things are the day to day business aspects of the company. What about marketing? Are you going to be to an Attraction Marketer or a traditional marketer, or some of each? What if your upline uses an Attraction Marketing System and you don’t want to? Is your direct upline OK|in agreement} with what you want? If not, you should find another upline. If your direct upline is OK with it, develop a good relationship, because this is the person you will work closely with. Do not join an MLM if you don’t think you can work with your direct upline.
Joining an MLM business is much more than filling out some forms and going out on your own. Before you “join an MLM”, be familiar with the company. Be familiar with marketing. And maybe most important, know who you will be working with.