Top 10 Factors in Choosing the Right MLM Business Opportunity
by Rhonda Crosby
Filed under Smart Business
1. Exceptional Experienced Upline Support Team What about the upline support team? If you want to make a lot of money in your home business, and make it as quickly as possible, you absolutely MUST join an Exceptional Support Team! This is more important than the company you join or the products you promote! It’s the #1 criteria for choosing an opportunity that will make you the most money in the least amount of time.
This is absolutely critical! No matter how experienced you are, without the right support team you can expect to spend many months and hundreds of dollars just doing the work to get started!
2. Company Track Record and Stability – How long has the company been around? Be cautious of companies just starting out. You know the ones…Prelaunch, “ground floor” opportunity. The failure rate with these companies are high. It’s generally just a matter of time when the only people that are making any money are the ones that got in early. Eventually, the business stalls, and, perhaps even dies. It would be a terrible shame if you worked hard to build your business only to have the company go bankrupt on you. Minimize your risk by choosing an existing company with a proven track record. At least 5 years old, preferably older. Are they a debt free company? Is there strong management in place? What is their track record? How well do they work together?
3. Unique Consumable Products – MUST have consumable products that people would purchase whether the opportunity to earn money was attached to it or not. Are the products exclusive? Can you get them anywhere else? Are the products high quality? Are they proprietary formulas or protected by patents? Are they consumable (i.e., do consumers use and use up the products)? I don’t think I need to go into details about how hard it is to build a business with run-of-the-mill “me too” products.
4. Reorder Rate and Attrition – Ask how often customers reorder. What is the average amount of the order? What is the attrition rate (or the percentage of customers that leave)? This is a clear indication of how stable the business is and how hard you’re going to have to work at your business.
5. Personal Requirements – What do you have to personally do for the business? Are you required to hold inventories, make deliveries, collect money? Keep in mind, you want to minimize the amount of distractions or busy work that doesn’t directly grow your business. If a lot of your time is consumed in paperwork, deliveries, follow-up visits vs. finding new customers or increasing revenues, when will you have the time to grow your business? Is the main focus on recruiting? I am looking for a company that understands there has to be an equally important focus put on the products.
6. Marketing System Effective Marketing Systems in place for both online AND offline marketing. Marketing in place for both the products and the business opportunity. Are tested, effective marketing materials available to you? Is there an automatic recruiting system, such as a nationwide co-op advertising program, already in place? All you have to do is plug into the system and get started! Is training available for the entire downline organization?
7. Investment – What is your initial investment? How much is needed to get the business started? Are you required to hold inventory? All of these factors have a bearing on the amount of cash tied up in the business. I would prefer a company that offers startup options to fit one’s budget including a low cost option of under $50.
8. Timing – Are there timing considerations? Are certain people granted special status because they’re getting in early? How big is the market for the products right now?
9. Compensation Plan – It should be a well Balanced Plan…A Compensation Plan that Rewards Part-timers, but also Offers Generous Leadership Bonuses for Heavy Hitters.
Review the compensation and marketing plans in detail, but don’t get caught up in the lingo – forced this, and binary that. Ask direct questions – What can I expect to make after a month/6 months/year? What is the average amount of money that I can earn at certain levels of performance? What is the range? How long does it take for people to achieve that level? What kind of effort does it take?
10. Risk – What is the company’s refund policy? Do they offer a no-questions-asked, money-back, satisfaction guarantee? And does that apply to your initial investment? Basically, you want to know what, if any, cash you place at risk if you decide not to do the business after a short period of time. Strong, legitimate companies happily refund your money. The others, well….don’t.
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