How to improve your success in MLM or Network Marketing?
Due diligence is an integral part of deciding which MLM company to join. Have you heard that phrase “Due Diligence” thrown around? Many people use the term due diligence in relation to starting a network marketing business. This post will outline 6 areas to look at and assist in the decision of a network marketing opportunity.
First of all when looking for a company to analyse there are some basic criteria to look for and improve your chance of success in network marketing.
These are business decisions none of which should be made in the heat of the moment or because you love the product. Don’t get me wrong loving the product will give you passion and aid in your commitment but if essential ingredients are missing in the company business model you will have trouble succeeding with your choice of MLM company.
6 Tips for a Decision on a Network Marketing MLM Opportunity
- Company Status. How long has the company been in business? Do you want to take a chance on a start up company? There can be pros and cons for a new company, you might be getting into an opportunity that has invented sliced bread. What is the past experience of the management team? Have the board members ever been in Network Marketing before?
- Product inventory of the company is another area you need to examine. Will you be recommending so many products you can’t remember the features for each? Then again you might wish to only specialise in a few products to distribute. The products you choose should be boutique, that is, stand out in the marketplace for particular reasons and also the product should be consumable so that a sale generate a recurring source of income that grows as your client list grows. Alternatively you may go for a high priced product with a high return on first sales. The former method builds and offers a guaranteed pay check each month based on sales people have committed to each month.
- Pricing of your chosen product must be a consideration. Consumable products not priced at a level people can afford each month will affect your reordering. Making it hard to increase your sales volume with low monthly re-order rates.
- Re-order rates. Try to find out if customers using your chosen brand continue to buy. What is the attrition rate for the product? Will you be playing catch up each month with your sales due to your drop out rate being too high.
- Compensation plans can be difficult to dissect when you first become involved in MLM. However, if you can’t get an initial understanding then how will the people you recommend to your company feel. Can you understand how you might make money on your first sales or in your first month?
How many times has the company changed the compensation plan? Your family’s future will depend on the income source from your hard work based on the compensation plan. Disaster may await you, just around the corner, if the compensation plan is likely to change. Are there recurring monthly costs to participate in the compensation plan? This particular reorder monthly criterion should also be within the grasp of people you may wish to join your MLM Company unless the properties of the product go some way to alleviate this issue.
- Initial entry cost will determine your success. The cost of becoming a distributor in particular company by be an inhibitor to other people joining?
Once you have chosen a company then you can go to the web and find more information through these ideas, 12 More Tips to Improve Your Success in Network Marketing. Read the free information and avoid all the hype and links to products that will cost you money.
Have you got opinions to add to the due diligence tips? Please send a comment so that anyone reading this post will have the benefit of your experience.
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