So....after a great deal of soul searching,you have finally made the decision to
try Network Marketing. First of all, the basic terminology can be confusing -
Network Marketing, Multi-Level & Referral Marketing are all the same biz - just
a different branding spin on a business/commission structure that pays you for
your sales as well as on the sales of those you “recruit” into the business (this is
known as your "downline").
The Party Plan is another type of structure often used by direct sales companies
(TupperWare for example!), and may or may not pay the same “multi-level”
commission structure, it just depends on the particular company and whether or
not you have the ability to recruit a sales force or downline - just different names.
In any of these types of companies, the emphasis is on product sales - and most
importantly - there IS a legitimate product or line of products to be sold. These
are NOT to be confused with the illegal structure known as Pyramids.
Pyramid schemes mimic multilevel marketing in that they compensate their so-
called "distributors" on a multilevel structure, providing incentive to sell the
business opportunity to prospects. The difference, however, is that pyramids
focus primarily on recruiting new salespeople for your downline, not on selling
products or services. In fact, in many cases there is no real product or service.
ALL gifting or loan programs fall under this category, there are no exceptions.
Any program that requires an investment that you will get back simply by bringing
in other “investors” is also a pyramid. There have been attempts to work around
this by offering ebooks, “loans”, etc, etc....but most of these programs tend to
work in “cycles”, “circles”, “phases” etc - where your position rises as you bring
in bodies, then drops you to the “bottom” level again after you get your pay-out
.....and the cycle starts all over again. The problem is that sooner or later - the
pyramid runs out of prospects....and the bottom level loses everything. Over the
past two years some very well known people have been arrested and convicted
for running pyramid scams. Although the prospect of easy money may be
tempting - it is not worth the risk.
There are enough legitimate network marketing companies to choose from that
you should have no problem finding one that will fit your needs, personality and
work style! Here are some good tips “pre-qualifying” your new “business partner”:
1) First and foremost - try the products! Whether it’s vitamins or kickapoo juice -
give the products a good testing. don’t leap in immediately and try to sell the
product or the opportunity until you are personally sold on both! If you don’t
believe in the value of your product and company - neither will anyone else!
2) Do some market research! Is the product or service competitively priced? Is
it unique in some way? Are you going to have to convince people that the vitamin
you have is really worth twice the price of the vitamins at the drug store? Or can
you point to the label and show that the product has 75% more nutrients for 75%
of the store brand??
3) Is this something you can see yourself doing 6 months from now? A year from
now? If yes, why? If no......why not? What’s missing or wrong?
4) Do some homework on the company! I If the company has been around for a
while, contact your local Better Business Bureau (or log onto its Web site at
http://www.bbb.org) for a reliability report on the company. Consult the Multi-
Level Marketing International Association by phone at (714) 622-0300 or by
visiting http://www.mlmia.com to see if the company is a member in good
standing. The Federal Trade Commission (FTC) in Washington, DC, has
information on any complaints that may have been lodged about the company;
contact the FTC at (202) 326-2222 or http://www.ftc.gov
However - if the company is new, there simply may not be a history to check on so.....
5) If you cannot get much history on the company, then check out the core staff,
their background and previous business history. Ages really don’t mean much
in this industry - leaders can be 22 or 62! - but the senior management should
have a strong prior experience in Network Marketing. As many successful
business people discover - being successful in another industry does not
necessarily translate to success in MLM.
Tips for finding the right network marketing company >>>>>>
