You might be at the point where you have decided to invest some of your hard-earned cash into a brand new network marketing business. But before you do it you should review the several options that are available. Don’t simply look at the money you can make, but also satisfy yourself that your future downline team can benefit as well.
Because not all network marketing or direct selling businesses are created equal – some are great whilst others simply don’t make the grade.
So here are a couple of things you should consider before making the final choice.
How long has the company been in business? Are they privately held or in public traded?
Who is the managerial team and what real world experience to they have in operating and growing a Global business?
Where are they open for business and can the products or services instantly be shipped into different countries without custom issues?
There are several essential questions to ask, especially when you are looking at a pre-launch opportunity, because most startup MLM organizations will fail within their first three to 5 years.
So whilst you may be able to see the positive aspects of jumping on board a prelaunch opportunity or joining a young company, you should know that the probabilities of one of these new businesses actually surviving is extremely low. Consequently if you’re not a risk taker you need to stay with an established firm.
Take a long look at the products or services the business is offering. Try and determine if a typical person on the street would buy that item or service, if an MLM opportunity was not attached to it. If you have doubts, do not join.
For your own security and peace of mind you need to look at these facts. Keep in mind that the majority of people who get into network marketing recruit less than three men and women in their chosen business. This means that most people who join are glorified customers simply because they are too lazy to function on their businesses.
If new recruits fail quickly, some will stay on as customers, but others will quit because their perceive they can buy a similar product cheaper elsewhere. Checking the attrition rate is also important – if the attrition rate within the company is greater than 20%, it may be difficult to build a profitable business.
The most critical issues clearly is the product. Is it superb quality? It is an item that individuals can’t buy elsewhere for the price – and will they want it in 5 years time?
If folks are used to paying $50 for an item and your product is much greater than that (for similar quality), they may soon revert to the merchandise they previously purchased.
One of the most essential issues about trying to sell any item of course is marketing and lead generation. Do you have a marketing program in place? You will need to have a budget as well as a marketing system so you can promote effectively? So what’s your plan?
Marketing is among the most critical aspects of becoming productive in network marketing, so this may be the 1st factor you have to implement soon after discovering the correct business with the right product.
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