So you have a friend, relative, coworker… who comes up to you to talk about his exciting new business opportunity. Lucky you, he wants to let you in on his newfound path to riches. You soon discover that he is pitching your involvement in a network marketing company (multilevel marketing) (MLM). You wonder, should I stay and hear more or run to the hills as fast as I can with my wallet securely grasped in both hands?
A lot of your decision is going to be based on a few factors.
First, network marketing, when properly operated is a legitimate form of direct selling. Several large companies have been direct selling through network marketing for years. Companies like Amway, Avon, Mary Kay, Herbalife, ACN and others. These companies have been around for years, and have a great track record of success.
Unfortunately there are others.
90% of network marketing companies fail in the first year.
So, how do you decide if 1) network marketing is for you, and 2) what company to join?
Here are some thoughts to help with those questions:
Advantages of network marketing as a business model for you:
1. You are self employed – your own boss. You set your own working hours. Yes, you do have to work to be successful, and work a lot to be very successful.
2. Your start-up costs are low. Most companies charge an initial fee to join. This will cover initial expenses, training materials etc. Remember even franchises like Mcdonalds charge franchise fees – your networking fess will be much smaller.
3. Established infrastructure/plan. What do 90% of network marketing companies do in the first year? (see a few inches above).
4. Good companies will have established support systems to improve your sales skills, and keep you motivated. An available mentor/sponsor will be critical to your success.
Disadvantages of network marketing as a business model for you:
1. Certain companies may limit your advertising/marketing to relationship only. It may be hard to build your sales strategies online.
2. You may be required to attend company training/motivational meetings.
3. Your success may vary depending on the reliability and commitment of your mentor/sponsor.
4. You may have to compete with your peers. Depending on how you are allowed to market yourself if you recruit someone in your sphere of influence than they willalso be selling into your joint sphere of influence. You may be selling and promoting the company to friends, family, others in your sphere of influence.
5. You have to be an effective speaker and presenter.
6. You may be looked upon “unfavorably” by people fearful or hesitant to believe in the benefits of network marketing.
Probably the biggest “PRO” is that you can build a business that earns you passive residual income – you leverage your time by building a team of people and you reap some rewards from their sales efforts.
What should I look for in a network marketing company?
7 Things to look for in a network marketing company
1. A solid product or service that you believe in.
2. A physical address for a company headquarters.
3. Review the compensation plan. Be sure you really understand the plan before you sign up.
4. There is a track record of success.
5. The company has been around for more than five years.
6. The company is continuously growing and expanding to other countries.
7. The company keeps its promises to members, e.g. motivational special awards etc.
A lot of your decision is going to be based on a few factors.
First, network marketing, when properly operated is a legitimate form of direct selling. Several large companies have been direct selling through network marketing for years. Companies like Amway, Avon, Mary Kay, Herbalife, ACN and others. These companies have been around for years, and have a great track record of success.
Unfortunately there are others.
90% of network marketing companies fail in the first year.
So, how do you decide if 1) network marketing is for you, and 2) what company to join?
Here are some thoughts to help with those questions:
Advantages of network marketing as a business model for you:
1. You are self employed – your own boss. You set your own working hours. Yes, you do have to work to be successful, and work a lot to be very successful.
2. Your start-up costs are low. Most companies charge an initial fee to join. This will cover initial expenses, training materials etc. Remember even franchises like Mcdonalds charge franchise fees – your networking fess will be much smaller.
3. Established infrastructure/plan. What do 90% of network marketing companies do in the first year? (see a few inches above).
4. Good companies will have established support systems to improve your sales skills, and keep you motivated. An available mentor/sponsor will be critical to your success.
Disadvantages of network marketing as a business model for you:
1. Certain companies may limit your advertising/marketing to relationship only. It may be hard to build your sales strategies online.
2. You may be required to attend company training/motivational meetings.
3. Your success may vary depending on the reliability and commitment of your mentor/sponsor.
4. You may have to compete with your peers. Depending on how you are allowed to market yourself if you recruit someone in your sphere of influence than they willalso be selling into your joint sphere of influence. You may be selling and promoting the company to friends, family, others in your sphere of influence.
5. You have to be an effective speaker and presenter.
6. You may be looked upon “unfavorably” by people fearful or hesitant to believe in the benefits of network marketing.
Probably the biggest “PRO” is that you can build a business that earns you passive residual income – you leverage your time by building a team of people and you reap some rewards from their sales efforts.
What should I look for in a network marketing company?
7 Things to look for in a network marketing company
1. A solid product or service that you believe in.
2. A physical address for a company headquarters.
3. Review the compensation plan. Be sure you really understand the plan before you sign up.
4. There is a track record of success.
5. The company has been around for more than five years.
6. The company is continuously growing and expanding to other countries.
7. The company keeps its promises to members, e.g. motivational special awards etc.
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