There is usually a crushing urge of ‘I Can Do It’ each time a viable business opportunity is introduced within the Network Marketing Industry. This is because most people are driven by their emotions rather than a genuine desire to own a business. As in every investment opportunity; the following strategies should be considered before you sign up any MLM Agreement.
In 2001, I worked in bank where the Chairman was talked into selling his bank. The arrangement was initiated by the Managing Director who was friendly with the prospective buyer, and the deal was concluded within less than two months. Six months down the line, the bank began to show signs of weakness and a due diligence exercise revealed very shocking story which led to removal of the Managing Director and his executives.
Investing in MLM is the same as buying into an existing business. As an investor, you don’t want to put your money in a business without investigating the company’s viability first. A due diligence exercise will help you to understand the key factors you need to convince yourself that the investment is right for you. Here are six strategies that help me.
1. The Company
Understanding the company and its industry is crucial. This will help you to assess whether the business is right for you and if it is the type of industry that fulfils your investment objective.
2. Product or Service
Many companies failed because of bad product. If a company offers sub-standard products to the market, it would not be long before that company goes out of business. Before you invest in MLM, you need to understand the products of the company. The product must appeal to you because you will ultimately market it and it may be difficult if you are not passionate about it.
Leadership is an important factor to consider when investing in a business. You must understand that the bedrock of success for any MLM company is its foundation of integrity. Good leadership comes with complete integrity and years of relevant experience. When you promote a company, the reputation of that company and its integrity will be a direct reflection of your reputation and integrity. If a business is profitable from wrong dealings, the leadership lacks integrity and it would not be long before the business closes shop. Team leadership is very essential in your choice of any MLM company. You should choose an upline who is experienced enough to lead by example. It is very common to come across selfish-minded leaders who are careless about their teams. If there is a team that is doing well in any company, check out its leadership; on the other hand, if a team is not doing great, you would also see it in its leadership.
4. Training & Marketing System
One of the major reasons people fail in MLM is their lack of experience and interest to get involved in marketing. Most people are not trained in sales so they dread marketing. It is crucial for you to look for a company that already have strong sales and marketing system in place which you would only plug into. One of the most efficient and effective ways of building strong team/downline is to commit to training, seminars events organized by your company. If your company is not holding events and or, if you are not committing yourself to the events, then there is tendency to struggle.
5. The Compensation Plan
I used to think that this was not very important until a prospect said to me after I presented my primary business to him…’sounds so good, but how much money is there for me? You will need to review the compensation plan and understand it. This may take a couple of days but it is worth knowing how it works.
6. You need a Mentor
Finally, for you to achieve good success in Network Marketing, you need a mentor within your MLM Company. A mentor is any person who has created a track record of success not only in building his own income but in assisting others in creating success as well. When looking for a mentor, avoid anyone who talks only about the money you can make. Be careful, some guys would raise your hope by telling you that it will be easy only to get you signed up and dumped in frustration
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