Choosing the Right Network Marketing Business Opportunity
Choosing the right network marketing business opportunity for you is not easy. There are many opportunities to choose from, and they all insist that they are the best. Of course, it's just not possible for them all to be the best, but which is the best for you?
There are several factors to consider:
1. The Compensation Plan. Look at the compensation plan for the network marketing business opportunity (or opportunities) you are considering. Does it reward both direct sales and recruiting? Do consultants earn a significant profit on direct sales? Are there opportunities to earn money right away or do you have to be in the program for quite a while to earn anything? Are there performance bonuses? Is it clear how they can be earned? Is the compensation plan easy to understand? Is it easy enough to understand that you can explain to someone else? This is very important because you will need to explain it prospects.
2. The Buy-In Cost. It should not be very expensive to join the plan. If it is, be very leery. Many companies have a basic buy-in rate, but then consultants are "offered" the opportunity to buy in at a higher level. The higher level brings greater compensation plan benefits. There is nothing inherently wrong with these options, but review them carefully. Are there required monthly purchases included as part of the buy-in? Again, this might be ok, just be aware of what you are getting into.
3. The stability of the company. How long has the company been in operation? Is it financially stable? How many affiliates, or consultants, does the company have? How long do most affiliates stay active? Do some independent research on your own. Read the materials the company provides, but don't let that be the only information you review.
4. The nature of the distributor agreement. Does the distributor agreement allow you to also participate in other mlm businesses? Can you recruit others from your organization for other complimentary affiliate programs? Some network marketing companies will not allow you to recruit any of their distributors for any other opportunity, even if it would really help their primary business. Some distributor agreements even forbid you from recruiting customers for other mlm opportunities. You should know about that in advance and factor it into your decision.
5. The company's marketing policies. Most network marketing companies have marketing policies that prescribe how you can market the product(s) and the business opportunity itself. Review these carefully. Some will not allow you to use the Internet at all to market your products. Others will not allow you to use the company name in your marketing. You need to be as free as possible to do business as you choose within your network marketing business opportunity.
6. Training and support. How much training and support is provided? Is it provided consistently or only for new consultants? Does the training include ongoing training in the product line as well as training in recruiting and prospecting methods? What is the format of the training? Is it all in-person? Are there teleconferences, webinars, and conference calls? Is it very clear who you call to ask questions?
7. Attendance requirements. Some network marketing companies require that you attend weekly or monthly meetings. Others recommend it. You need to know about attendance requirements in advance so you can determine if you will be able to comply with the requirements.
8. Production requirements. Most companies require a minimum amount of sales (or customers) to stay active. This is not necessarily a bad thing because it indicates a focus on the products and sales, which is a key factor in determining that a company is a real network network marketing business opportunity and not a pyramid scheme. However, you need to consider these production requirements to be sure they are reasonable and that you will be able to meet them.
9. Focus on the products. Some network marketing companies focus much more on the network part of the business. All of the training materials and meetings are about prospecting and recruiting, and the product line that the company is supposedly all about takes second stage - if it is on stage at all. This is not a good thing. The best companies are those that make the product line the centerpiece of the business. They also emphasize the networking and prospecting piece, but sale of the product line is always recommended.
10. The reputation of the company. This is the last item in my list, but it should be the most important item in your decision making process. When you join a network marketing business opportunity, you are representing the company and selling it to others. If it has a bad reputation, you risk your own reputation by association. Also, you need to be able to enthusiastically speak of your company. Are the company's business practices above reproach? Can you represent the company proudly and confidently? The network marketing business is challenging enough without having to defend the company against deserved criticism.
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