When looking for the best MLM company for you, there are certain questions you must ask of all potential companies and sponsors in order to make a good decision and one with which you can feel confident that you will have maximum success and thrive with the company and sponsor you have chosen.
1. How long has the MLM company been in business? Many people jump ship when they don’t make money and look for the next new company launching in hopes of getting in on the ground floor and making it big. Although it is exciting to think about being one of the very first distributors in a given MLM company, the reality is that 90% of them go out of business during the first two years, so it is best to join a company that is at least three years old. Companies that have been around for awhile have the kinks worked out. They know what works and what doesn’t work. They generally have a training and marketing system. You may want to check the Direct Selling Association (DSA) website to see companies that have met a years worth of scrutiny and criteria to be listed on their site.
2. What is the product? Is it something you are passionate about that would want to share with others? Is there really money in it? People and ads may say that there is money in it but is there really? And what is the percentage of people in the company that are actually making money? In many MLM companies, only a very small percentage of the distributors are actually making over $100 a month if anything at all. Do your homework and find out if there really is the kind of money in it that they claim.
3. What is the retail profit? A solid company and downline will be built quicker and easier if you can make money by retailing and not only by recruiting. A company that is product based will bring you that residual income as you and your downline build your customer base. This is money you can count on… recruiting and fast start bonuses may be few and far between and not a reliable monthly income. But if you have customers that love your product and order on a continuous basis, you have a base monthly income. Generally a 20%-30% retail profit is typical.
4. Who are the company owners and what is their track record? If they are honest and ethical leaders who have experience in network marketing, the company will be more successful long-term than if they have not. Google them, and check with other industry experts for thier opinion. Join forums and ask questions. The MLM industry is a closely knit community so someone has heard something!
5. How many other MLM businesses are selling the same product or something similar? Although competition can be good, too much competition or too many companies with the same or a similar product will make your job building a business more difficult. How many nutritional or weightloss MLM companies are there out there? How about travel companies or skin care and beauty? What makes your companies product unique. What is thier selling point? How do they stand apart from the herd?
6. How many reps are already in the company? If there are too many, the company may be saturated and this can make it hard to build a large organization. If there are too few and the company has already been in business for a while then something may not be right with the company. This is not to say that if you join a company like Amway, that you cannot be successful, but the chances that your friends and family and neighbors have already been approached 100 times is pretty likely unless you can put a new twist to it, or focus on one particular part of the product offering that is unique and build your own brand around that.
7. What are your options for building your MLM business with this company? Do you have to do parties? Can you do fundraising? Can you use the internet? Are there multiple ways to build the business or only one or two? Also think about whether you need immediate money or if you have time to build a residual income. With a party plan, you can have a show right away and take home retail profits that night. Generally with MLM, it takes awhile to recruite and build a customer base, but in the long run, the residual benefits are greater. However, you can build an MLM by also having home parties that focus on your product and make some retail money up front. Be creative and diversify your efforts!
8. How much is the autoship? This is important not only for you, when you are getting started but for your future team members. Many companies have authoships of $150 or more and this can make it difficult for people who are just getting started to afford along with marketing tools and other expenses they may have. Depending on the product(s) you may not personally consume $150 of each month and it may stack up on your shelves unless you get out there and sell it each month. This is another reason to develop a customer base. If you have customers ordering monthy, this can fulfill your monthly auto ship requirement and when you’re just starting out and don’t have the cash, you won’t have to order every month. You can use the PV from the customers order to put towards your own monthly requirement. If you do have product inventory piling; you might consider offering specials to your current customers at a discount off the customer price. You’ll still make a little between wholesale and the preferred customer price and get those products moving off of your shelf before they hit the expiration date!
9. What kind of support and training is available? This is crucial for you especially in the beginning. Are you confident that your sponsor will not just sign you up and then leave you on your own? Choose your sponsor or recruiter wisely. Know that you can work with them and that they are genuine about helping you get started. Ask them questions to find out thier product knowledge, whether they have gone through any company training, and any other experience you feel they need to help you or find you help.
10. What is the comp plan or pay plan? Various plans will make it easier or more difficult to earn a large income? Learn your pay plans first! Again, ask the experts and people on the forums. There are extreme disadvantages to some and great advantages to others that will either make or break your business. Some reward only the top leaders while others benefit everyone equally. And when you do join, learn how your compensation plan works. Some of them are very complex and you may be leaving a lot of money on the table each month if you aren’t aware of little things you could have done to hold onto that money.
11. What are the company’s plans for future expansion? If they only have one or two products now, will they have more in the future? Are they planning on opening in a country where you have prospects in the near future? If so, this may increase the likelihood that you will be able to grow your business faster and make more money with the introduction of new products. On the other hand, some companies do quite well with only one product for many many years… look at Xango! When you have one product focus, you have less to learn and an easier story to tell, but there are only a few companies that have had success with only one product for any length of time.
So remember, when choosing the best MLM company for you, be sure to do your research to ensure maxium results that will reward your efforts!
AnnaLaura Brown is a successful network marketer who enjoys marketing her business online. She finally joined her company in 2005 after searching and being introduced to many opportunities. Learn more about her and get some useful online business building tips as well as her free newsletter at Internet Network Marketing Learn about her specific MLM business at Online Candle Biz
Article Source: AnnaLaura Brown