Important Questions to Answer about Network Marketing

Are you asking how to be successful in MLM?

With the high attrition rate (people dropping out faster than joining) in most MLM's, finding success is not always easy. There are some things to consider before you join any network marketing business…

Products vs. Recruiting
Does the company constantly push its distributors to build a downline rather than sell a product? A dead giveaway is when the business exists only for new members and not having a product they would buy in the absence of a business opportunity. Recruiting is vitally important in MLM marketing, but is spells bad news if it is the primary focus.

Are People Buying the Product?
Is there anybody retailing products or are they just garage qualified? Of course, everyone should continue to seek new leaders to grow and develop, but not to the point where no retailing of products occurs. There has to be a balance. With true network marketing, selling something – a service or a tangible product is the major aim.

Is the Product a good Value?
Consider what the product is that you'll be selling? What is its price? Is it competitively priced? Is the product price being inflated? Remember, only a few companies actually manufacture the products for most of the major MLM companies. Inflated prices occur when a company's products are very high and the same product can be found with another company for much less. In addition, if you can find the product in places like Wal-mart, Costco, Safeway, or on Ebay, etc., this spells trouble for distributors. Who can compete against Wal-Mart? When it comes to how to be successful in MLM, being involved with a company that operates with a product or products like this will make success very difficult.

Compensation Plans
What sort of profit can you earn with the company? A profit is simply the difference between the wholesale and retail price of a product. If distributors only get 3%, 5%, 7%, etc. of the wholesale profit, they are going to need many, many people in their downline if they are going to build a good income for themselves. For many distributors operating at that level of profit percentage, it means that more than likely they are going to need at least a couple of thousand or more in their downline.

Company Overhead
Does the company you're considering have a large beautiful building? This may seem a little wierd, but it is very important to consider. The more expensive the buildings, staff, operating systems for procurement and delivery, the less money from the total revenue will be available. In other words, the less overhead expenses the head office has, the more of the total revenue can put in the compensation plan for distributors.

Bonuses
Are bonuses paid throughout the various levels of distributorship? Is so, what are the criteria for becoming eligible for these bonuses? Do people have to go through so many hoops, and the eligibility criteria so demanding that only the top 1% or 2% of distributors qualify for these bonuses? This is especially important to consider since most people in MLM are part-timers. If almost no one ever qualifies, where does the money go? If you are looking at how to be successful in MLM, think about this very carefully.

Training and Support
Does the company provide adequate training and marketing materials for you to sell their product? How about the team you become part of? Do they provide additional training or support? You don't want to be left alone to figure it out all on your own, so make sure you join a team willing to help you.

Think carefully about the above questions if you want to find more success in your MLM company. If you don't like the answers you find to these questions, it means that you will find success to be very difficult.

If you are contemplating becoming involved in MLM marketing, make sure you choose to be part of a company where you can build it big for your children and your children's children.