When it comes to surviving the hardships of starting up, and managing an MLM company, the first three to five years are usually the most crucial. Many new companies that begin their business venture don’t last more than a month because they did not learn from the common mistakes their predecessors made before them.
When joining an MLM company as an independent distributor
, it is important to know all the ways to qualify that company and their business in order to be confident about your initial investment in them.
Questions You Should Ask Yourself When Researching a Top Rated MLM Company
What types of products is the company offering you to sell to consumers? Is the product unique or is it similar to other products you’ve noticed distributors are promoting? If the product is even remotely similar to another company’s product, what is it that makes it better?
Find out if they have discovered a new angle in promoting the product or if they came up with a significant improvement to an original product. You should also be aware of the fact that just because a company can offer you more products for you to distribute, you have a better chance of gaining more income.
A Common Myth About MLM Companies and Their Products
This, almost always, is not the case. Many of the quickest growing MLM companies in the past decade have been the most successful when promoting and improving one product, or a line of similar products such as niche health and beauty supplies or weight loss supplements. In network marketing
, a successful distributor will be able to produce enough volume to quality in order to take advantage of scheduled bonuses if they have an innovative, and decently priced product to offer consumers.
Just because a company can sometimes offer their distributors over a million products doesn’t mean the profit per volume will increase. What counts more is if the product can make a significant impact on a consumer’s interests and needs. Be wary of products that can be easily imitated, and produced on a larger scale by bigger corporations so that you do not end up in the situation where your parent company has to deal with a sharp drop in sales.
Researching the Longevity of an MLM Company
You should always do extensive research on how long a company has been in business. Be cautious of MLM companies that have just launched their venture since so many newcomers in the industry normally fail within the 6 months. Consider companies that have been around for about a year, and have displayed a steady pattern of healthy growth. Investing in these companies can result in a respectable residual income
. Sometimes you have to take a big risk in order to return a big gain!
It is also important to recognize more than just the sheer size of a company. You should be questioning the company’s stability and growth potential as well. Companies that have the apt resources to pay out bonus checks on schedule, ship products on time, and exhibit excellent support and customer service are better poised for success. The ownership and management also play a big part in overall success of a business venture.
What to Look for in MLM Company Owners and Top Level Management
It is important to research if the owner, or owners, of an MLM company
have been successful and recognized in the industry for previous ventures. Finding a company that has an owner who has shown great success and rapid growth would be a great pick for a business opportunity investment.
When looking at the top level management of a network marketing company it is a good idea to find out how solid the company’s leadership skills are. You should also find out if they have the necessary financial resources to survive the beginning hardships that many companies face within the first year of business. It’s a known fact that many businesses go under quickly because they do not have a substantial amount of capital to begin with.
If you are willing to put in the time to fully evaluate a company for these basic qualifications, you can be more confident in starting a business
opportunity with them, and you will be more likely to earn the income you are looking to achieve!