Here we talk about Few Facts about MLM companies. What you should know before starting your MLM Company, Why and the Facts of MLM Software.
What to watch out for when looking at business opportunities…
- A legal COMPANY sells REAL products/services that already have an existing and proven place in the market. Example: If you are invited to join a club or membership that has no valid place in the commercial market with no real products or services being sold, it is a Pyramid scheme, run!
- If the COMPANY guarantees earnings, and it’s not a salary, then it’s an illegal operation. If the earnings are based on interest paid on an investment or commission holding and the interest is higher than industry averages then it’s a Ponzi scheme. These two bullet points are the fastest way to spot a scam and you should run from these “companies” as fast as you can.
4 things you know before joining any mlm company
- Most charge a significantly higher amount for their products or services so they can afford to pay commissions and make a profit. This forces the distributors to only recruit new distributors and have them buy the products. If you can’t sell your products at competitive prices and still pay commissions, then you shouldn’t be in business and most won’t be for long. This is why I would advise you to stay away from these types of companies.
- A large majority of business opportunities ask you to sell products to your friends and family, which can ruin your relationships. Not something I would recommend.
- You get paid for your sales and the sales made by the sales team you recruited. The difference is they put all of the risks of hiring and training bad salespeople on you as the independent sales office. In exchange for you taking that risk, they pay you high commissions and you can work your own hours. Therefore, if you aren’t a salesperson, then most business opportunities aren’t for you. Even if you are a salesperson, but you aren’t good at recruiting salespeople and training them, then most business opportunities aren’t for you.
- Buying training packages is another red flag for me. If a company makes you purchase a training package to get started, then the odds are the company is making all of its money on the training packages and not its core product offering. If this is the case, then you need to run because it means you won’t make any money selling the products.
These are things every marketer should know about before they get started.
- Most of your income will come from the efforts of 1-2 people on your team, even if you have personally sponsored hundreds of people.
- To succeed in network marketing you need to develop a unique set of skills, such as selling, marketing, leadership, and communication. Most people do not have these skills when they first enter the industry.
- Just because most people fail in this industry does not make it a bad industry. Most insurance agents fail, but people still become insurance agents. Most traditional businesses fail, but people still start new businesses. Most weight loss programs fail, but people keep trying to lose weight.
- Typically, about 50%-60% of the people on your team will quit, 30%-40% will become loyal product users, 10% will do something to build the business and 1-2 people (from the 10%) will be your rock stars and produce 98% of the results.
- There is no secret, no fast or easy way to build your business. There are no magic words. There is no push-button formula or magic dust that will help you achieve success quickly. You have to roll up your sleeves, get to work, and stay persistent and consistent for several years.
- The biggest struggle you will deal with in this business is time management. You definitely have to learn how to manage your time wisely, especially if you are a part-timer, and have a day job and family responsibilities.
- If you aren’t getting good results in one company, your odds of switching to a new company and getting better results are quite slim. Until you develop the right skill-set and right mindset, you will struggle in every company that you join.
- Just because you are good at selling in the real world does not mean you will be successful in network marketing. This industry is not like traditional sales. This industry is all about sponsoring and teaching, not mass selling or mass recruiting.
- Building a huge team in one company is hard to do. Building a huge team in two companies at the same time is even harder to do. Ultimately, you need to focus on one company exclusively for a long period of time.
- The difference between the top earners and the people who fail is nothing more than the number of exposures they make on a daily, weekly, or monthly basis. The key to success in this business is EXPOSURES. The more people you expose this business (and products) to, the better you will do.
I hope this whole Article helps you to understand the things you need to know before joining MLM Company. If you have any queries, feel free to ask or contact us.