How to Choose the Right Network Marketing Opportunity
Steps to Choosing and Creating the Right Network Marketing Opportunity
Network marketing business opportunities, also known as Multi-Level Marketing (MLM) opportunities are businesses that focus on direct selling of products and services to consumers combined with recruiting or building a team of sales representatives.
Although there is a plethora of network marketing and MLM opportunities advertised through home business magazines and on the Internet, many of them promise unrealistic riches and immediate success. However, there are many good MLM opportunities for those willing to work and work hard. Read How to Succeed in Network Marketing to get a sense of what it takes to what it takes to be well.
In reality, as with any business opportunity, there are many factors to consider when choosing the right network marketing opportunity for you.
- Product or Service: The product or service that the network marketing company offers must be something that you believe in and can sell directly to your customers or your friends and family. Remember that the key to your success is to sell the product or service and then recruit and teach others to do the same and duplicate your efforts.
- History of the Company: Consider how long the company has been in business. If the company is well established and has been in business for several years, it is likely that at least some of their leaders have found success with their products and programs.
- Company Leaders: The people behind a company are largely responsible for its success. So, find out who founded the company. Why did they found the company? Who is on their management team? What are their backgrounds? Will you have access to them so that you can learn about how they became successful? Spend time learning about the people you would be working with directly.
- Testimonials: Most people talk to the management, distributors and associates of a network marketing company before they join. However, make sure you also talk to people who have chosen to leave the company. They are often the best sources of information.
- Compensation: Understand the compensation plan and the formula for how you earn money. Are you buying products or services at wholesale and marking them up for your profit? Are you selling the products are retail and getting a commission? Find out whether the profit sharing percentages are paid on retail sales or wholesale sales after retail commissions are deducted, or some other formula. How accessible is it for you to achieve the levels needed to be successful? The company should have a detailed explanation of their compensation plan to help the novice work though the complexities. Good compensation plans can be complex so have an experienced network marketing leader explain it to you in detail.
- Training & Support: Training and support are crucial to the success of a direct sales and network marketing business. The company’s training program must be sufficient to support you in your business. Does the company have enough training support to get started? What kind of ongoing training is provided? What training tools are available to help you grow and succeed? What support tools does the company offer? Successful network marketing companies will share the tested and proven sales and marketing strategies that have been effectively used by their leaders. Some of the support tools they may offer include video training, audio training, personal websites, sales presentations, catalogs, quality printed literature etc.
- Product / Service Warranty: Make sure that the product you’re selling is covered by the company through a warranty and refund policy. To ensure customer satisfaction and avoid payment issues, the company should stand behind their products and offer to refund monies to unsatisfied customers.
Many network marketing programs are recommended by friends or family. Before you make a decision to join, look at the success of the team you’ll be joining. You rarely succeed alone. It takes a team effort combined with a good product and support system. But in the end, the real effort will come from you. You will have to make it happen.