MLM Opportunity
Searching for a top MLM opportunity?
With the state of the current economy, where the average national unemployment rate consistently tops 9 percent, people continue to search for alternative ways of saving money and earning more income. Starting a home business is a great way to save money by providing tax benefits, and an MLM opportunity is the easiest way for the average person to earn additional income from home.
Why an MLM opportunity?
Whether income has been cut by job loss from corporate downsizing or overseas outsourcing, or people are preparing for the worst due to job insecurity, an MLM opportunity provides unlimited income potential without investing large sums of money or acquiring large liabilities. Most MLM opportunities average well under a $1,000 investment to get started, with minimal monthly overhead.
Not all MLM opportunities, however, are created equal! While the Internet has provided many more options for running a successful home business, it has also enabled fly-by-night operations to open (and close) almost daily.
So, how to determine if a home-based MLM opportunity is right for you as a secondary (or primary) source of income? When evaluating any MLM opportunity, be sure to get the answers to the following questions before taking action:
Is the company solid and stable?
Find out how long the company has been in business. Most MLM opportunities do not survive the first two years. Even at four years, the failure rate is over 50 percent. When an MLM representative discusses the benefits of getting in on a ‘ground floor opportunity,’ think carefully. With most start-ups failing, why put yourself at risk by getting in on the ground floor?
If you are concerned about the market becoming saturated with too many distributors, making it impossible to build a profitable business… DON’T! The oldest MLM company has been in existence for over 50 years, and still grosses billions in sales with millions of active distributors. Even with their track record, new distributors still join and are very successful.
Does the company stand behind its products?
Does the product do what the company claims? This is especially important when evaluating a health or nutrition product line. If looking at vitamins or supplements, are there clinical trials from independent laboratories that back up the advertising? Does the company require its distributors to buy inventory? If so, will the company buy back any unused products? Most importantly, do you like the product? Does it benefit you? Can you believe in it? It is nearly impossible to sell a product that you don’t believe in.
Are you required to purchase a large amount of inventory up front to qualify you for higher commissions? It’s better to test the products with a small amount first to see how you like it and if other people would be interested in it enough to buy it before investing a large amount of money in products.
Is the product viable?
Is the product marketable without a compensation plan or network marketing program? Is it reasonably priced? Can potential customers find a product in stores that is just as good for the same or lower price? Would distributors continue to use the product and recommend it even if they didn’t continue selling the product?
Product timing and relevance
All companies claim that ‘now is the time to join.’ But is the product relevant to the marketplace? Does the MLM opportunity really have momentum? This is important because growth magnifies effort. If an MLM company is growing at an annual rate of 5%, you can expect your efforts to mirror that. If the company growth rate is 30%, you can expect your efforts to mirror that as well.
As a distributor, are you required to purchase inventory?
If you are required to purchase inventory, make sure that the product will sell. A good rule of thumb is to not purchase more than you can use or sell in a month. If there is a purchase requirement, will the MLM company buy back any inventory that has not been used?
What is the primary function of a distributor?
Before signing on the dotted line, be sure to understand your role in the company. As a representative, will you be required to sell the company’s products and services? Recruit new distributors? Actively do both?
Most MLM opportunities want their representatives (or distributors) to recruit new distributors who, in turn, will recruit even more distributors into their downline. However, if the MLM opportunity is focused solely on recruiting new distributors, and no one is selling products, think twice. If no one is selling products, will distributors alone purchase sufficient products to keep the company on a strong growth pattern?
If you want to focus on marketing products, and not managing a downline of distributors, will you still be able to make money? Make sure that the commission plan is sufficient so that you can still earn if you opt to focus on retailing the product or service without recruiting a downline.
NOTE: Keep in mind that with any MLM opportunity, the highest money earners are those who are able to recruit new distributors, and train and support them to become successful.
Sponsor support
What kind of support will you get from your sponsor? The answer to this question is critical! Just like all MLM opportunities are created equal, neither are all sponsors!
The person who introduces you to the MLM opportunity becomes your sponsor if you sign up under him or her. This ties you to that person for a LONG time. Be sure that you are signing up under someone who will guide you to success, and not ignore you as soon as you have committed to the business.
While some sponsors sign up a lot of distributors, they do not support any. Others are more responsible, and help with marketing or by providing warm leads to their downline.
One of the major benefits of a network marketing home business is that while you are in business for yourself, you are not in business BY yourself. To take advantage of this network marketing benefit however, you must be sure to sign up under the right sponsor.
Company training
Does the company offer training and support? Regardless of what they say, the product or service rarely “sells itself.” Ask about training, as well as support and marketing materials. Look for:
- ways that sponsors (or the company) will help you get new leads
- product brochures
- marketing presentations on DVD
- up to date recruiting materials
- training sessions (either in person or via online meetings or phone calls)
- quality training tapes
Marketing materials
All companies provide marketing materials to their distributors. Of course, some companies provide better materials than others, The better the marketing materials, the easier it will be to acquire new customers and distributors.
Marketing materials should stress customer benefits of the product or service that explain how they will help the buyer or prospective distributor. They should also provide concrete evidence and third party credibility with newspaper articles or independent studies that back up these claims.
Evaluate the compensation plan
After satisfying yourself about the quality of products and services offered by the MLM opportunity, don’t forget to investigate the compensation plan. MLM companies use a wide variety of formulas, so comparing them can be difficult! Questions to ask when looking at any compensation plan include:
- How many personally recruited distributors are required to meet your monthly income goals?
- What is the difference to your income between acquiring new customers vs acquiring new distributors>
- Are cash bonuses or non-monetary rewards part of the compensation plan?
- Are the income examples and statistics provided realistic?
The compensation plan is an important consideration before joining any MLM opportunity. If you are not happy with the comp plan, neither you nor your downline distributors will stay around long. Even if you personally stay, distributors you have invested time and money training may opt to leave to sign up with another MLM company.
Contact us today to learn about our top mlm opportunity: Lightyear Wireless. The total package to securing a solid financial future for yourself and your family.
