In this pandemic age, more and more people are forced to look for alternate income sources. The unemployment level has skyrocketed with many people losing jobs. Other concerns are that even if they have a job to come back to, will it be at the same level?
Multi Level Marketing (MLM) companies have long been that avenue for second income streams for many people. The draw is that they will usually offer a way to be your own boss, with high income potential, which can usually be run in your spare time. Wikipedia explains that revenue streams within MLM’s are basically derived from commissions from product sales and commissions from recruit purchases. They are business opportunities that can grow into your own sustainable business entity.
Key Criteria To Pick The Best MLM
- Detailed knowledge of the company
- How long the company has been in business is most important
- Years of experience is critical. It should make sense that a 2 year old company is more likely to fail than a 10 year old company.
- While longevity is a good thing, even those experienced companies started at year 0, so other things need to be considered
- With access to the internet, finding out a company history should be easy and should be done
- You want your background research to include finding out about any legal issues or complaints
- What are the products, services and strategies
- If it is a product based MLM, ask if they manufacture their own products. If they self-manufacture, there is less probability of fulfillment issues
- If it is a service based MLM, ask if they self-perform the service
- Find out how well they handle placed product orders, or how well they perform the offered services
- Can you tell if their products or services are in high demand
- Thoroughly check out the marketing plan to determine if the emphasis is on product sales or recruiting a downline. If it seems more about product sales, it could possibly be a pyramid or Ponzi scheme. Make sure you verify the legal structure of the business.
- Make sure the marketing plan is easy to understand
- Verify customer support and service value
- Figure out if they are helpful to customers, as well as recruits
- Determine if customers are satisfied with the services
- Does the product price match the product quality
- Check if there is an affiliate program offered to earn by referring affiliates
- What is the compensation plan
- Will the income potential meet your requirements. Most MLM’s tell you the income potential is unlimited.
- Will the starting package provide enough income and commission for you
- The commission offered from the initial investment sales should compensate for the initial investment. Profit from referrals should be decent.
- Make sure the compensation plan is obtainable, with reasonable effort, and not a scam if it seems unattainable.
- Are commissions paid on a weekly or monthly schedule, weekly being preferable
- Can it be worked part time
- Check if you can start it on a part time effort and still make decent money.
- Will it be time intensive.
- Will the program be fun to work
- Does the MLM offer training
- Offering a training kit or some sort of online training can be invaluable. Not everyone is a salesperson, and any marketing help is a bonus
- Is the company based near you, where you’d be able to attend any conferences
- Will the MLM provide you with a website to aid with sales, the better companies will
- Is there a company website where customers can also place orders for products
Before joining a MLM company, in depth research needs to be done and I hope this article has given you the starting points on what you should want to know about any MLM company. If you consider all the above points, you should be able to easily determine which MLM company will be best for you.
Many people are successful with the MLM opportunity. Your success will depend on selling lots of products and recruiting lots of people to do the same. You hear horror stories of people losing friends over the pressure to make sales with a MLM company. If you enjoy talking with people, a MLM opportunity could work well for you.
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