With more people looking in to buying a franchise or investing in home based businesses, the industry is becoming more and more saturated with new wannabe entrepreneurs and network marketers. Within this alone there are so many different markets to choose from; health (Forever Living), beauty (Avon) and cleaning products (Kleeneze) are but to name a few businesses which claim to cut out the middle men and give distributors the chance to make an honest living with company benefits.
With so many choices it can be incredibly hard to decide which of the companies are genuinely going to see you for your efforts so here’s a small guide on what to look for before stepping out of your comfort zone and making life changing investments.
1) Will you use the product yourself?
Sounds naff but to be a good marketer you are best to know your products, so before even thinking about the companies think about the products. Are they of any genuine use to yourself or your home, if so why? If you have used the products before and can happily testify their benefits then that will be a big bonus in the long run, people are better sold on testimonials than a reel of facts.
2) Do you think people others would genuinely benefit from the products?
Similar to the previous but to get a good client base you need something that works well enough for people to talk about it. Word of mouth is a key factor in Network Marketing and the more happy clients you can have the more people will learn of your awesome products, thus more retail. Simple!
3) Does the initial investment cost seem reasonable?
Franchises are pretty steep with set up costs, MLM’s are a lot cheaper but how much are you getting for your money, be stringent and think tight.
4) Research the company, are they strong or going bust?
If you follow the news you’ll be fully aware of Avon’s closures this year. Spanning from America to France and Ireland, with the threat of more jobs being lost yet they are on a big recruit drive for new distributors. Would you consider this a worthy investment given the facts?
Many MLM companies have public shares or partial bank ownership, given the current UK economy this in itself is a pretty hefty risk and many are making huge cuts to fit the bills incurred as such.
To get a stable and secure business would you take the gamble on bank owned mlm’s? I sure wouldn’t!
Privately owned assets are the best route for a secure business. So do some homework on each you have considered and weed out those who are hanging on by a financial thread.
5) Find reviews!!
Get some reviews about the products as well as the business itself.
http://www.moneysavingexpert.com was what got me to bite the bullet and join Forever Living, the reviews were pretty impressive and since then I’ve had more comments on the solidarity of the business in a sea of home based business sharks.
Look in various places, there will always be haters but you need to find some facts. Most mlms aren’t as great as they claim – but ALL require patience and consistency for returns so in any case ensure the returns are worth the effort. This also include the company benefits and incentives they offer. Check they exist as working your butt off for a fake goal is quite disheartening and may put you more out of pocket than you expect.
6) Training, free or costly?
Do they offer training? Is it free? is it good? Sometimes one team is better with the training than another, even within the same business so one bad team doesn’t denote the entire business.
If you are able to; before signing up, watch the team! See how they support each other (or not) and make note of the training. Are you learning anything just from watching? Do you feel comfortable with the methods they are using? If its a no to either of these its probably not for you!!
7) Is the products’ market booming or losing interest?
Another simple one, whats the current trends? Look through media and try and get an overview of the things people are looking for and what people are willing to pay good money to get.
Being a medical student I’m fully aware of the boom in the health and wellness industry, meaning there will be a wider target audience for products associated with health.
Last but not least:
7) Would you consider this as something you would recommend to others?
To be successful in MLM you need a team who are going to trust you and allow you to mold them in a similar fashion to yourself, if you haven’t caught the vision of the business – recruiting will be hard as hell. Having no heart in it won’t get people believing!!
Don’t jump in to anything blindly, the more pressure they apply the more you aught to back off as any investment is a big choice and its your choice, nobody else’s!! Take your time and make sure you know exactly what you are going in for, investment budgets, advertising and the like – that way you will be certain to get yourself a good start to a great opportunity!
- Household Budgeting: Secrets to Marital and Money Bliss (quicken.intuit.com)
- Sallie Krawcheck: The Top 10 Financial Mistakes Women Make (huffingtonpost.com)