I've been in a network marketing industry for three years and although I may be new to this, I have someone (a mentor) who have helped me realize and discover things about network marketing.
Today, I want to share with you four crucial elements you need to look at first before joining a network marketing business.
1. Good Company
It's the very first thing you must consider if you want to become a networker. It's like the foundation of your business so you might as well take your time researching about the company you wish to enter.
You need to at least know a little bit of its history before you start signing up. Ask these questions to the person offering you the business:
- When does the company started its operation? Or how long has it been in existence?
- Does the company follow rules and regulations, or has legal documents supporting the credibility of the business?
- Does the company have achievements or awards?
- What are the companies attached to it? Who are its partnerships and how credible are they?
- Is the company operating locally or globally?
Just like any businesses out there, most companies fail within its first two years of operation. You need to make sure that the company you're joining is experienced enough to handle and manage difficulties in the present or in the future. And, a good company must be flexible enough to adapt to changes and trends.
Also, businesses such as these are required to abide rules that makes them a legitimate and legal business. For network marketing, the Federal Trade Commission (FTC), a United States regulatory agency who monitor and prevent deceptive business practices, released guidelines to determine whether a certain network marketing business is a legitimate one or just one of those pyramid schemes.
A good company, if it has been running or in operation for a long time must at least have been recognized or awarded. Check the company's achievements and awards before entering one. It may not only proves the legitimacy of their business system, but can also be a huge factor in your success in the industry.
Another thing to consider to know if it's a good company you're joining is its list of partnerships. Aside from researching the background of the company, you also need to research the backgrounds of its partnerships. Just like what I mentioned above, you need to know information of the companies they're working with.
Lastly, see the company's market. Know if the company provides products or services not just in your country but also abroad. One advantage of an international company is that it gives you a bigger market. The bigger the market there is, the bigger the probability of higher sales.
2. Good Products
Having good and consumable products serves as the big difference between Network Marketing and Pyramiding Scheme.
Read: Muti-level Marketing Explained in Simple Terms
Products make a fundamental ingredient to make network marketing business a success.
Before you join network marketing, you must know first the company's products as it will help you out in different things:
- Know the scope of your target market. Are the products they're offering in demand in today's trend? If it is, it would be easier for you to share the products, thus allowing you to have more sales.
- Are the products consumable? See to it that their products are something that are consumed and can be continuously bought in the long run. Supplements, beauty products are good examples of a consumable product. Let's say, someone bought a bottle of supplements from you, consisting of 60 capsules. If your customer likes it and finished it for a month, the customer may have to buy the product from you again. By that, you may now have a monthly sale because of that customer.
Another thing to be aware of is that the products must be of high quality. It should be as effective as it has been described by the company and by its manufacturers. Make some time to do a research of their products and the claims of those who have consumed it.
3. Good Compensation Plan
In network marketing, the compensation aspect involves how you benefit from this kind of business. You need to make sure that you're going to gain more than what you lose. Ask these questions first:
- How can I make money?
- How long will it take me to have my ROI?
- Is there any ranking system?
Normally, in a network marketing business, members earn thru products and referrals. You must be very aware of the company's ways to let its distributors earn money. Learn how much discount you'll get from their products and its equivalent points, how much is the maximum possible income in a day, if there is a safety net (limits), and their ranking system.
Also, last but definitely a priority, is to know how long would it take you to have your return of investment (ROI).
The compensation system must have a lucrative potential and must be effective enough to produce good and fair results.
4. Group System
One of major things that would help you out to succeed in this kind of business is the support system the team has organized for you.
The team should know how to keep people be motivated at all times, and should conduct trainings that would help new members to have the same results as soon as possible.
Let's say you already have a good company you want to join, that company has already checked the mentioned elements I discussed above - has good credentials, high-quality products, and good compensation plan, now before you release that decision of yours to start a network marketing business, you should take a look at what the team has in store to support you.
Most people who failed at network marketing has entered a not-so-good team: they are left behind, they haven't got a good mentor who will teach from the basics up to the advanced part of doing network marketing, they are not given reminders and pointers, and they have no consistent meetings together with the team members.
Before you join a team, let them answer these set of questions first:
- Do you have weekly trainings for old and new members?
- Do you provide tools and guidelines that would help us succeed in this business (e.g.: books, videos, etc.)?
- Do you conduct free courses that would help improve our knowledge in a particular area relevant to the business?
- How do you keep your members active?
- How many of your members already had or already having good results? (Remember that the more number of members succeeded, the more it is likely for you to succeed as well)
If their answers satisfy you, then you should not stop yourself any longer to join the business.
Network Marketing offers a really big opportunity for everyone. And unlike traditional businesses, network marketing offers more advantages and benefits.
So if you encounter someone asking you if you want to join network marketing, remember to take a lot at these four crucial elements: the company, the products, the compensation plan, and they're group system.
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