Why Research Pays When Considering Network Marketing
Network marketing, direct sales, multi-level marketing; regardless of the name you give the industry, you know what I’m referring to. Now before you roll your eyes and click the exit button hear me out. I too am annoyed with countless sales pitches and cold messages, particularly via social media, but there is a good reason it seems to be everywhere.
A recent Forbes magazine articles states that, “...the entire industry is poised for explosive growth and can be one of the most significant solutions to America’s current retirement savings crisis.” And whether you want to admit it or not, most Americans could use an extra boost in this area.
Why not do it working for yourself?
I do believe there are three key points to consider when selecting a network marketing company:
Is the product consumable?
If people love it they WILL want more of it when they run out. That is a fact! While there is a MLM for almost every product under the sun, this doesn’t mean each one is sustainable based upon the product alone. Yes, you must always be searching for new customers regardless of the product, but there are some things that once they’ve purchased, they’re done. I know personally I’ve got more bags, cooking products and jewelry than I can shake a stick at. While I LOVE and adore those products and the companies that sell them, I don’t need them as often as I do cosmetics and skincare.
Is the compensation plan lucrative for everyone?
If only the people at the top are making money, there is a problem. A compensation plan should be profitable for everyone, regardless of rank within the company. Of course more money is made as rank is achieved. That is no different than an entry level job verses an executive position. However, having equal opportunity for each person to reach that executive income level is important. Also, make sure that the plan is sustainable. A good company will have run their plan through long term simulations based upon growth and sales projections so see if it will stand the test of time and markets. Take some time to make concrete comparisons of compensation plans across companies. For instance, if you want to make $500 a month what would you need to do that? Sales, team structure, team volume, etc.
Is it ground floor?
This term gets thrown around so much but what exactly does it mean? Whether it is a brick and mortar company or direct sales, the term means that it is relatively new and/or there are very few people sharing the products. Numbers play a big role in this, as in number of representatives versus total population of the country within which it is launched. Looking for a company that is growing not only within the US, but in other parts of the world as well.
I too find it a good idea to look at the company’s values align with your own personal ones. Do they offer paid vacation, maternity leave or other sickness benefits? Think about whether or not the company aligns with your life, ideals for success and goals. Lastly, we know that the turnover rate in direct sales is typically high. It is valuable to know why people are leaving the company; on their own accord or because of the culture, products or compensation.
While the only foolproof formula for success is your own hard work, considering these three points is valuable in determining the potential of the company’s longevity. By making an educated decision and putting your best effort in, you’ve started yourself on a path to freedom, however you may define it.
Above all, make a choice that fits YOU...because it’s not what you sell but how you sell yourself that matters.