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Now don’t get me wrong, I am not suggesting that all
multi-level marketing companies are pyramid schemes. What I am suggesting is that depending on where the product
life-cycle is weighs heavily on whether you should become involved with that company.
If you are sold on the MLM concept here are some suggestions.
- Research is the key ingredient. Do your homework. Find out as much as you can
about the company and it’s structure. Many times this is difficult because these companies are privately owned
and held and their information is not as available as a publicly owned company.
- Is the product viable? Is there a real need for it? There is nothing worse
than trying to sell a product to an over-saturated market.
- Ask your recruiter where they are in the organization. How many levels are
there between you and senior management?
- What are the criteria, in plain language, for moving up in the
organization?
- Will you be required to sell a specific amount each month to keep your level?
This is a problem for many people because it requires you to have a specific level of inventory always on hand.
It also requires that you meet a quota for sales if you don’t you may be lowered to a different commission
structure.
- Do you believe in the product? Sounds like a stupid question but honestly if
you don’t believe in your products value how can you successfully sell it?
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Don’t get caught up in the moment either. In order to build excitement around their products many
companies offer other incentives like a company car or paid vacations to exotic locations.
Find out if there are restrictions on how you can sell your
products. Can you use the Internet, or are there limits to certain geographies?
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Also don’t recruit family members. It’s just bad business. At some point
you may have to deliver new lower commission levels or worse yet, level them within your down-line; this could
cause bad feelings and family stress.
As I had said earlier MLMs definitely have a place in the home business market.
Most if them are made for home based business operation so they sound appealing. Stick with the suggestions above
and you’ll do OK.
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