Network marketing is an online industry that relies on consultants or representatives to sell their products and grow a customer base.
The company provides the products, testing, training, and often professional marketing materials. Consultants sign up with a network marketing company to represent them and sell their products to their network. In return for their efforts, the MLM companies pay a % commission for each sale made.
Network marketing can be the right business for those looking for a way to make additional income by the side, but have little capital. Getting started in this business doesn’t require any formal qualifications, and you don’t have to wait for too long to start making money. Most of the time, you start making money within a few weeks, depending on how quickly you are able to sell your network’s products or recruit more marketers into the program.
However, most people looking to take a plunge into network marketing face one big challenge, finding and choosing the right network marketing company. There are hundreds of network marketing opportunities out there; all making promises of mouth-watering benefits to those join their network. You need to be very careful because many of these “opportunities” are run by scammers who are out to steal your money and waste your time
Now, how exactly do you tell a good network marketing company from one that is not worth your time and money? We will show you how to figure out a suitable network company that is best for you.
1. Carefully Research The Company’s Profile
Even though you have to make your own success, it makes whole sense to work with a business that will be around even after you’ve developed a sizable group and invested many heads, doesn’t it?
Check to see if the business you’re joining is financially secure and has been operating for some time so your efforts to foster teamwork won’t be in vain.
Over the years, far too many network marketing businesses have risen and fallen. Legal issues, since they are illegal, could be one factor. additionally, just like traditional enterprises, it’s possible that the proprietors were unable to maintain the operation of the company.
Many network marketing businesses fail during the first five years. When that takes place, you don’t want to be in those distributors’ shoes.
Additionally, see if the business has a global or international presence. Even though you currently have no plans to expand internationally, you cannot control how your network will expand in the future.
2. Check If The Company Is Sound On Its Capital
To put it another way, does it have the money it will need to expand, keep up with technology, attract talented management, maintain a strong infrastructure, and, of course, pay your commissions? Be on the lookout for a growing business.
3. Check If The Company Have Unique And Innovative Products
Products must be valuable but not excessively expensive, and ideally come with a money-back guarantee.
Are the goods edible? The products must be consumable and of excellent quality because the firm is focused on generating long-term residual income. Customers make repeated purchases as a result, month after month and year after year. It’s not simply about getting a sizable one-time sale or commission.
Verify the products’ patent status and ownership exclusivity. There are many highly talented copycats. Do you want your goods to be advertised at department stores or anywhere else?.
Customers must be motivated to purchase from your network marketing business for more reasons than merely to take part in the money-making scheme. For instance, consider the question: “Do people have to purchase phone cards from me in order to opt out of the compensation plan?” The answer is “No,” as the same phone cards are available for purchase in shops.
The company is more likely a pyramiding scheme, or wolves in sheep’s clothing, if the product being sold has no real world VALUE and/or is overpriced. Beware!
4. Look Out For Their Terms And Condition In Growing Your Business
The majority of network marketing businesses are pretty lenient about what you do. Utilizing social media is encouraged, and it’s wonderful to have both an online and offline presence.
However, many businesses have terms and conditions in place that specify how you cannot expand your network marketing business.
This can include using third-party websites like Amazon or eBay to advertise and sell your products, using Facebook’s marketplace, or even starting your own blog website and doing the same.
It’s worth thinking about whether a potential company is the right fit for you if you have a strong desire to promote your company in a certain way but this doesn’t comply with the T and C’s of the company.
5. Is The Product Value For Money?
Your product should be reasonably priced, meet a genuine need, and have a sizable untapped market. It must, of course, offer excellent value while satisfying client needs.
6. How Trendy Is The Product/Plan
Products of short term appeal cannot help generate long term residual income. Make sure that the product/plan is something that the customers will continue to use for a long time.
7. Check For The Training And Support System
Does the company provide associate websites that may be customized, DVD presentations, and full-color marketing materials? Will it teach you how to promote your company? Check to see if the business has created a reliable online ordering system so that users can place orders. You should be able to sponsor new associates on the website as well. Is there online training available? Do nearby cities host conventions and conferences?.
8. Examine The Compensation Plan
Network marketing companies all have different compensation structures. Make sure you are comfortable with the compensation plan by reviewing it. The company pays its commissions in a certain way. Commissions must be paid on product sales, not on subscription fees.
Can I still make money if my network only uses the products and doesn’t seek out new members? is a good question to ask yourself. The correct response is “YES”; if not, run away as quickly as you can.
9. Check For Automated Systems
Is there a way to build your business part-time without losing your full time income?.
The company must have automated systems that can do the heavy lifting, i.e, selling and sorting for you so that you can use your limited time efficiently.