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RISING WOMEN EXPERT
ADVICE...
I am a stay-at-home mom and have been approached to join
a multi-level marketing (MLM) company. What are these companies and what
should I be aware of if I join?
Network marketing or MLM has been around for years, and is now one of
the more prominent business models being taught in business schools today.
MLM companies are NOT pyramid companies (illegal), and the industry is quick
to shut down anything that appears suspicious. MLM companies are, however, a
form of direct selling, and what’s appealing is the fact that ANYONE can do
it. You don’t need any business/sales experience to be extremely successful.
Businesses are home-based and allow for all the tax write-offs (upwards of
$5000/year) that go with it.
Recently, I read that the most successful network marketers are homemakers
and teachers. Why? Because they aren’t salespeople! This may sound strange
at first, but network marketing is all about telling a story. Generally,
people get involved because they’ve tried a great product, and by
“endorsing” it they can make a substantial income.
Still unsure about the “sales” aspect? Let’s honestly look at this for a
moment. If you have ever gone to a fantastic new restaurant and told a
friend about it, then you have done network marketing. It’s that simple, and
if you are somewhat of a social person, this could be the career for you.
But like any new venture, there are a few things to consider before signing
up with ANY company:
1) Leadership - who is at the helm? What is their MLM experience? Who makes
up the corporate team? If it’s a new company, what kind of investment
(financial and time) are they making? Are there any training and marketing
tools?
2) Initial investment - How quickly can you expect a return on your
investment? A good company should provide you with a plan of how to recover
your investment in a timely fashion (weeks to a few months maximum).
3) Compensation plan - Is it fair for both novices and the experienced
marketer? How wide and deep does it pay out?
4) Product - is it consumable? This is preferable over a one-time sale as it
allows you to build a wealth of customers who order from you each month,
thereby increasing your residual income quickly.
5) Reputation - Is the product scientifically or medically researched. Is
the product and company endorsed by a reputable third party.
Written by Kari Marcinkow, Calgary. |
