You’ve probably seen several friends posting about a new product that they are obsessed with and they can’t wait for everyone of their friends to try it. They have invited you to join their online parties and try this amazing product that makes your skin glow, frees your home from chemicals, or allows you to clean like you’ve never cleaned before.
Many of the products are amazing and can help improve the quality of your life. You may even be using some of those products, but how do you know if an MLM or Network Marketing company is right for you?
What is a Multi-Level Marketing company?
A Multi-Level Marketing company is a network of people who sell products and develop a team of people who also sell products and create their own teams. You will have an “up line,” the person who you sign up under. Anyone that signs under you is your “down line.” You make money when you sell products and you earn a percentage of money from the products anyone in your “down line” sells.
Tips to Guide You on Choosing a Multi-Level Marketing Business
- Multi-Level Marketing/Network Marketing is a business
First you should know that MLMs are real businesses, which means that they require real work. It requires you to be a sales person sharing your products with friends, family members, and other potential clients. Some multi-level marketers make their jobs look so easy, but if you are serious about creating income with your MLM business you will need to put in the sweat equity just like any other business.
2. Interview the people you will work under
You will be working closely with the people that you sign up with. Make sure that your up line will be active in teaching you how to sell products and grow your business. Ask to join any private Facebook groups or professional development opportunities that your up line hosts before you sign up with a company so that you can get a sense of what their team is like and how they work together.
Starting a MLM can be really difficult just like any business, so you want to make sure there is support for you as you learn how to navigate sales and business development.
It’s a good idea to interview your up line (the person you sign up under) as well as that person’s up line. The more people you can interview that are apart of the team the better picture you will have of the type of support and encouragement you can expect.
3. Try the product
You will have a much easier time selling a product and growing a team if you actually love the products yourself. If you are having to talk yourself into believing your products are worth the money, then it’s likely that you won’t have much success talking other people into buying products from you.
4. Review a Copy of the Payment Plan
How will you get paid? Many MLMs will require you to continue purchasing product in order to be paid for selling. Consider whether you will be able to afford the cost of purchasing items each month.
Also, many MLMs have certain bonuses and rewards if you reach sales goals. It’s important that you are aware of those goals before you sign up with a MLM business. Sometimes there are certain deadlines that you are required to meet in order to receive payments.
5. Consider the Start-Up Costs
Popular MLMs require a start up cost that is between $150 – $600 or more to join the business. You may receive some product in return for your payment of the start up cost depending on the MLM business you choose. You also need to consider if you can accept the loss of your investment if no one signs up underneath you or doesn’t buy product from you.
6. Product Competition
Does the product you will be selling help solve a problem? Is there a cheaper version of the product easily available at the grocery store or online? Is the product reasonably priced?
Think about your network of people that you know, are they the type of people that would purchase this product from you?
7. Product Creators
Do you trust the people who created the products you are selling? Do you know where the products you sell come from? It’s important that you believe in the products you are selling and fully trust that you are selling a high quality product. Especially since you are putting your name on the line with friends and family who trust your opinion.
Research the products online, read reviews, and test the quality yourself before suggesting these products to other people.
Just don’t forget…..
When considering a MLM you should look at both the positive possibilities and the potential negatives. Never be afraid to ask hard questions especially when your time, hard work, and money are on the line.