In this article We are going to see important facts everyone looking to enter in the network marketing business shall know. We are going to look at important things to consider before you join any network marketing company
11 things You Need to Consider Before You Join any Network Marketing Company
The following are 11 things to consider when selecting a company in network marketing
1. Products and Services
Choose the products that you love it yourself and you are willing to use it. It becomes easier to share with others news of things you love and use yourself. People tend to be influenced easily by positive comments from people they know and trust than any other influences.
For the sake of business you should pick consumable products or services to market in network marketing. This is true even in the normal businesses. Products that are consumables guarantees return customers and return customers are the key to any business success there be any.
So if you want to success in network marketing choose the company which products are consumables and fast moving like health supplements,cometics and food.
You shall always look for products which can benefit the consumers. These products are easy so sell and you can even convince family members and friends to buy with no worry that they will complain and put your relationship into jeopardy.
The cost of the product shall be affordable as well. It’s difficult to sell high priced products even if they are beneficial to users. It’s important to weigh and balance benefits versus the cost. Though the fact is the products with many benefits may cost more to produce and eventually may be expensive as well.
Return policy: can the buyer return the product if are not happy with it after purchase and test? If the company offers this then this kind of products can convince many to try and if it’s a good product then chances of getting many recruits is high.
2. Age and company credibility
Years the company have been in business is very important to consider.
Statistics portray that 95% of all new businesses fails is first 5 years. Network marketing companies are no exception.
We know any business have to start and grow to maturity, during years of growth the company faces with different challenges which helps to stabilize as it creates solutions to remedy it. Obviously the aged company will be better than the young ones.
So when selecting which company to join put the age as an important factor and know that the older the better all other factors being the same.
Join the company with at least 10 years old,30 years old being the best giving you higher assurance.
You have to assess the company credibility before you decide to join. Search on internet for reviews and discussion. See how people rate it.
Check the company if is a member of DSA – Direct Sales Association. DSA have rules and regulations which require a member to follow which can guarantee you as the user check the list at www.dsa.org
Don’t be lured by the “early bird picks the worm” analog. You may run away with it but it risky business.
3. Cost of Joining
There some cost you need to pay to join any network marketing company. This cost usually include some product for starting a business and for your personal use and test.
The startup kit may include the training materials for yourself and for training of others.
Make sure that the cost you are paying when joining include these things and are useful for you to build skills and will help you grow the business and recover your investment.
Turn away from the companies which provides less of value in the starter kit and the companies which don’t include their products in the joining fee they may be a kind of pyramid scheme companies which are doomed to crumble.
4. Membership Conditions
The network marketing companies requires its members to be actively consuming products or selling. Remember these companies distributes through you members. So if you are inactive they lose business. Most of the companies sets the condition for member to be active and paid commission shall personally use some products. Assess how much does cost for auto ship products in the company you want to join and ask yourself if you can afford.
Another point to check is the conditions to promote you to higher levels.
Usually it depends on the products you use yourself and the products consumed by your team ( down line members). Assess to see how this is done. Others have very difficult conditions to move you to higher level where there are more benefits.
4. Compensation Plan
The compensation plan tells how you can earn money in the network marketing.
You are paid for your own purchases and those of people joined under you.
There many types of compensation plans bit we can see some of them
This type allows the member to add as many members as possible in the first level and can start earning immediately.
Your first line team can recruit other members and so on.
This scheme allow you to break away from your leader when you have grown and you will get some money for doing this. But the same will happen to you when some of your members grows will have to breakaway and will take some money from you as well.
Here you can recruit as many people in the first line as possible and you can add people on the second line members. The commission are different on each generation level so you may prefer to put as many as possible in the first line.
You only have to recruit 2 member in the first generation and you can help your downliners by adding new recruits under them.
Your commission is paid based on the team and not on the generations.
The top two members creates what is called LEGS and these must be put in balance i.e. must have same amount of people or sales volume.
Your commission will be based on the sales from the weaker leg.
Understanding the compensation plan for a network marketing company may prove difficult but its important; and this is the task of a leader to let you understand and you as well to make your downliners understand it.
Training is a very important part in the whole game. You need to know very well how network marketing is working and the company you join. What is its training plan in the company.
Some companies provides you training in form of face to face presentation,webinar,seminars,online materials ,DVD etc.
Make sure it’s the part of the startup kit you buy when you join.
Some of the companies sell these materials to members. I would prefer the company which provides these for free so that I don’t have extra cost.
Which training is provided by the leaders to their downliners? This is the key to success. Many failures results from the recruits who knows less about the business and its products and who don’t know how to market and recruit.
Ask questions to someone who want to recruit you into business. See if can answer it well without hesitation. Your leader need to understand well the business for you to benefit from his/her leadership else ask yourself whether that the right person to join under.
Find out about the technology used by the company. Do all the trainings available on internet and accessible through computers, tablets and mobile phone? Are there off line resources as well you can access if you are limited to access through technology?
How are the orders made? Through internet ,offline or both? Look for method which will convenient to you. Some companies only offers online ordering of products which may not be easy for everyone.
In recruitment and team management: do the company provide the system to see your team and their activities, this can help you manage well your team.
The enrolment can be done offline and online as well? Which method is preferred by you?
Do the company provide you with a website for marketing? Many companies provide this to their members. Access it before joining and see if it will do good for you.
7. How long you need to work
Ask your leader how many hours she/he works per day or week. As for any business you need to put in time and efforts to succeed; Network Marketing is no exception. Sacrifice things you enjoy but with less value to do things or more value like this business.
You will need at least 1 hour daily or 5 hours per week for prospecting, recruiting and doing sales follow-ups.
8. Prospecting and Sales Methodology
Do you have to deliver products to customers or they will pick themselves at the company distribution centre? Many people don’t like carrying products to clients.
Some of the companies has set the system where you don’t have to carry products, you just talk to someone and can pay and order directly to the company and products will be delivered to them.
Can the prospect join gradually by purchasing few products and increase until they reach the starter pack value and become members? This is important for those who cannot afford to start at once with the membership starter pack.
9. Up line Leadership
Your up line leader is a very important person and can be a key to your success or failure in this business.
Supposedly he/ she is the one who knows better about the business and its system than you and shall be your trainer and mentor to the business.
Ask a lot of questions before joining and even after becoming a member.
He shall have time to give you enough training from you to replicate as well.
Choose the right person as your leader.
10. Prospecting and Sales Methods
Learn out how prospecting and sales is done in the company. Does it use technology (computers, internet and social media)? Which methods your prospective leader is using. Will you be comfortable with these methods or not?
You shall learn internet marketing if you have to be successful in internet marketing these days. You shall be able to leverage the power of internet and social media.
You will at the advantage if your leader can handle both methods. The traditional method for prospecting shall not be left behind. Techniques like seminars and one on one training and meetings will never be obsolete.
11. The Leader
Choosing to whom you should join is very important in network marketing business success.
Choose someone who is will to give his/ her time to train you for success.
The potential leader shall be willing to share all business techniques he/she knows.
Don’t join the person who cannot give u enough time and with less support to you.
Before you join any network marketing business make sure you do enough due diligence ,learn about the company age and its leaders, the product and its value to the market, marketing strategy, tools and methods used, the prospecting approach and the leader you want to join under. Create a check list and pass through all the checks before you make final decision.
If this is well done ,I guarantee you that you will choose the right company with the right products and under the leadership of the right upliner and as a result you will succeed.
If you need more information concerning joining and growing your network marketing business please call me at +255 713 514703 / +255 765 027402
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