If you’ve ever dreamed of running your own home business, whether on a full or part-time basis … and you’re good with people but have very little business knowledge, MLM might be for you. This is especially true if you have minimal start up cash.
MLM companies provide a product or service to the consumer via a network of “independent” dealers, who usually work from their home country.
Reputable franchise companies also provide a low start-up cost, all the training you need, advertising in one form or another, and provide you with a product or service portfolio for sale. It also allows you to recruit other distributors and form commissions on their total sales.
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However, the U.S. Federal Trade Commission warns anyone against joining the MLM company that pays you for each distributor you assign, rather than paying a commission on the total sales that it produces. This is called & # 145; Pyramiding & # 146; and illegal.
The United States of America FTC also encourages you to conduct a comprehensive search for franchise company before signing the dotted line, and not to sign anything under pressure, but instead, it takes some time to look at all the details. You can view the web page of multi-level marketing caution at: (http://www.ftc.gov/bcp/conline/pubs/alerts/pyrdalrt.htm). On this page, they also list seven tests that you must take before deciding whether or not to join.
Research is always an important component of any commercial venture, and the exception of a distribution company with a MLM company is no exception.
Searching the Internet under & # 147; multi-level marketing & # 148; will return a recipe for results ranging from government agencies, public information websites, and encyclopedia type sites, to a group of disaffected ex-distributors. People representing MLM websites don’t write about it because they are usually very busy building their network.
The good side
Here are some of the benefits of finding a reputable franchise company:
They have a well established and highly marketable product or service line, and strive to improve or add to the current assortment.
Hiring new distributors will be a simplified process and the company will not participate in Pyramiding.
– As a company, they will have a proven track record and good work ethics.
– Experience will not be required. Good franchises provide individual training, as well as motivational seminars and a full set of training materials. After all, in multi-level marketing, when each one succeeds.
– A reputable franchise company will be a “family” rating, meaning that raw behavior is not tolerated.
They will present an excellent reward plan with many incentives for those who excel.
Well-established MLM companies must be able to provide you with resource materials to assist you not only in product sales but in employment
– They will have a minimum startup fee.
Powerful support system.
– You will be led by an example.
– Healthy team competition.
There will be a successful business and marketing plan that can be successfully replicated by others, assuming they apply themselves to the plan and have the drive to succeed.
There will be the possibility of a full-time or part-time commitment.
Sure, these features belong to an ideal multi-level marketing company, but not all reputable companies excel in all of these areas. Some companies will be better in certain areas than others. Do research on the company. Don’t accept the motivational noise most franchise companies use for hiring.
Some MLM distributors are so highly trained that they have a return of almost every statement or concern it. This will be considered “high pressure” & # 146; invitation to join. You can always spend time to calm down, especially if you are passionate about what you heard. Sit down on your decision for a while and do research. If the company is good, it will stay there when you wake up tomorrow; and yes, you will receive a follow-up phone call.
While the MLM model can be a great tool for achieving what you want in life, it is important to mention the downside.
– It’s easy to get “Socket” by a suspicious franchise company. Do your research.
– If you plan to develop a network of ‘downline’, it will cost you more money than you realize and will take you longer than you think. Although this is simple compared to the cost and time required to start a traditional business. You will spend a lot on the resources and training materials that you will eventually end up distributing to your potential clients.
You might spend a lot of money on fuel for your car, meals outside, hotel rooms, or neck surgery to sleep in your car.
Some companies insist on the minimum monthly order to maintain your distribution.
Some companies only pay you to hire other distributors, not the total sales volume. Beware, as this is called & # 145; Pyramiding & # 146; illegal in most countries.
Although you may initially lead to the belief that products sell themselves and that you can make a lot of money with a little effort, beware. Most companies, whether traditional or online, or MLM, use a lot of energy and effort to make them succeed. Consider a missile: 60 80 only uses 80% of the fuel to lift it a few inches off the ground.
Be prepared for a lot of rejection. About 80% of the people you call will reject you.
– It’s easy to indulge in a dream & # 145; over-spending because & # 147; winners always find a way. & # 148; It is also easy to press & # 145; willingly & # 146; spend beyond your means.
The career of your life can become so easily, that everything is centered around it. Some distributors refuse to attend family weddings, etc., because it is on the same date as their franchise seminar.
Also, like most companies, when you start, you’ll spend more than you do.
Final judgment: Most business owners face the question, “How much will I be able to prepare and lose if that doesn’t work?” This is the question you should ask before entering into multi-level marketing.
And of course, what do you want from life and what do you want to do to get it?
If you enjoy helping others succeed in order to be successful, you are ready to take risks associated with working in yourself, even on a part-time basis, and you are willing to put in long days, then multi-level marketing may be the tool you are looking for to achieve your business goals and life.
Here to succeed!