If you’ve carefully considered starting your own network marketing business and have money set aside to do so, you must take the time to research everything to do with the MLM marketing opportunity that you would like to pursue. Some careful research can save you time, money, and/or disappointment.
Network marketing and direct selling opportunities are definitely not created equal, so you should do your homework before you sign on the dotted line. There are a number of things that you really should consider:
The first question to ask is how long the company has been in business. Companies come and go in the network marketing and MLM (Multi-Level Marketing) industry, many fail within the first couple of years for any number of reasons, usually the company is underfunded, their products are overpriced or inferior, or the management team is not experienced in this business model.
If you’re going to take the time and do a lot of work to establish your MLM business, you do not want to choose a business that disappears after two or three years, because your hard work and business will rapidly go down the drain behind it. The best MLM companies have been in existence for a long time, for example Mary Kay which has been around for over 30 years.
Although you may be tempted by a prelaunch offer be very careful. They do offer a number of advantages – very often early sign-ups can get you in without paying any kind of buy-in fee. A few people have become millionaires by choosing the right prelaunch to get in on, but many thousands more have lost their hard-earned money when the company rapidly went belly up. If you’re new to network marketing, it’s best not to even consider getting in on a prelaunch. Look at companies that have been established for at least five years.
The next thing you need to consider is the management of the company, if you choose a long-established business to join, take a look to see if the management team is stable. It’s important because a constantly changing management team probably means there are problems.
The next thing you should consider is the product. Are you going to be happy promoting it now and in 10 years time? Will the product be desirable in 10 years time? Can you purchase the product in local stores? Another important question is, would the average person buy this product if a MLM business opportunity did not come along with it? You have to take this into consideration, you’re not just selling to a downline, they also have to sell the product to enable you to build your business and earn commissions.
The sad truth is that most people who get into MLM only sponsor on average 2 to 3 people during their entire business careers! That means that most people are really just interested in getting the product at a wholesale price and they are too lazy or not willing to go the extra mile to build their own successful business, if they can find the same product at roughly the same price somewhere else they are going to quit. The attrition rate in multi-level marketing is hovering around the 90 to 95% mark, be aware. This means that building a successful MLM business quickly will be very difficult, unless the product is evergreen and desirable.
So we’ve established that the best MLM company to join should have been in business successfully for over five years, and their products should be desirable, priced right and not readily available in other places.
A highly successful network marketer spends about 95% of his time sponsoring and recruiting other people, the remaining 5% he spends on selling product. That’s where the money is – once you have a downline team of 100 people working, for example 20 hours each a week, then you’re leveraging 2000 extra hours a week of their time for your business. You will not make substantial amounts of money doing network marketing until you get to grips with that fact.
The next-to-last thing to consider is how you’re going to market your business. Do you know how to build a website? Do you know how to drive traffic to a website? Do you know anything about networking and promotion on Facebook or other social networking sites? Do you know how to generate highly qualified leads? Do you know how to organize yourself – have you found a software product that will work for you to help you get organized?
If you can’t answer yes to any of these questions, then find out everything there is to know about all these aspects of marketing before you even start to look for a company or a product.
Most people fail in network marketing because they really have no clue how to run a business. They don’t understand the hard work and long hours it takes to build a successful business, if they don’t get results within a few weeks, those 90 to 95% of the people will throw in the towel.
Do you have any other suggestions for people who are considering network marketing or MLM to earn extra income? We would like to hear from you so you can help others.