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Looking to start a business from home?
Thinking of joining a network marketing business?
Here’s some information that you need to be aware of! Not only will you be more educated, but you won't get the wool pulled over your eyes. ^_^
An article was published by the Bureau of Consumer Protection Business Center that outlines what questions you should be asking of a multi level marketing (MLM) and network marketing company that you are interested in joining.
It is a HUGE help when trying to sift through and determine what is legitimate vs illegitimate businesses out there.
Because UN-fortunately some people are out there to scam you and make the good guys seem bad … even when they're not!
So I wanted to break it down for you.
Consider the Products
Find out exactly what you will be selling / sharing with people. — Is it something you would use or are passionate about? (If not, why are you even interested in trying to sell it to someone?)
Find out about the product’s competitors. Is anyone doing it better? Or do they cut corners to try and seem like they're better?
How do the products compare on price and safety?
You should have a critical eye for products that promise “miracle” ingredients or guaranteed results. (Usually pretty shady.)
Should you decide to buy into a company and promote their products, be sure the marketing materials you’ve been given back up your products provide solid evidence to claims you make about the products, BEFORE you repeat these claims to others.
Learn More About the Company
Research the company. A few key items you need to know are:
How long has the company has been in business?
Does it have a positive reputation for customer satisfaction?
What the buzz is about the company and its product on blogs and websites? (This one take with a grain of salt. Most negative reviews are like a bathroom wall and may even simply be someone trying to sell you something else!)
Has the company been sued for deceptive business practices?
Check with your state Attorney General for complaints about the company you’re considering. This will be one of the best ways to determine if the complaints on the Google bathroom wall are valid.
Evaluate the Plan
Take your time when it comes to signing up with a company. The eager friends who are excited to start working with you do not mean that you have to sign up RIGHT NOW.
Make sure you have the answer to all of these questions first.
Ask your sponsor for the terms and conditions of the plan, and make sure you get them in writing, and make sure you get all of this information in writing including:
The compensation structure
Your potential expenses
Support for claims about how much money you can make
The name and contact information of someone at the company who can answer your questions
If you are unsure of unclear on anything, don’t be afraid to ask for more information. If they are legit, they will not take offense that you want to do your homework.
Before you sign, make sure you:
Find out about refunds.
Get the company’s detailed refund policy in writing.
Find out how much time and money other distributors have spent on training, marketing materials, and seminars when they joined the plan.
Also be sure to find out about any training you may be required to participate in. (Keep in mind training is most likely not REQUIRED, but most people who do not attend training events do not do as well as those who follow what they learn in training.)
Ask a friend or adviser to read the materials.
Have an accountant, lawyer or a trusted advisor who is in no way affiliated with the company or compensation plan review the terms of compensation and look over the information you’ve been given.
Think about whether this kind of work suits your talents and goals.
Would you enjoy selling products to the public? Find out how much time your sponsor and others spend on the business when they first joined, and how much time they spend currently.
Keep in mind people have different priorities and different timelines. Just because someone spends every waking moment working their business does not mean you have to do the same.
Here are some questions to ask before making any decisions:
How many people have you recruited?
How long have you been in the business?
How much time did you spend last year on the business?
How much money did you make last year — that is, your income and bonuses, less your expenses?
What were your expenses last year, including money you spent on training and buying products?
What percentage of your sales were made to distributors?
How much product did you sell to distributors?
What are your annual sales of the product?
What percentage of the money you’ve made —income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started?
It’s very important you have a complete picture of how the plan works in as much detail as possible, as well as the most information about the company as possible before you make any decisions.
For one of the businesses I am a part of (Empower Network), they strive to be the most ethical and transparent company as possible. (I can attest to that!) And to that end, they have addressed each of the concerns listed here for review at this link.
I hope that these tools add to your knowledge so you can make the best decisions for you and your family in your entrepreneurial journey.
I appreciate you! Hope you have a wonderful and prosperous rest of your day. 🙂