How many times have you read the pitch claiming a network marketing plan was simple anyone can do it and thought if that is the case, why is it still being advertised? Something that is billed as being exceptionally lucrative promising an obscene income and requires very little work, no experience and minimal investment should be having people lining up at the door begging to be a part of it. But, no. It is still being advertised because, apparently people are too stupid to recognize a great opportunity.
Or, it could be that people are getting smarter about spending their money. While few network marketing opportunities require a degree in rocket science, even dummies can make them work with the right training, there are a few things that need to be considered before hooking up with the wrong crowd of people. Probably the most important thing to look at is the company’s history.
Try to determine how long the company has been in business, five years is the typical benchmark for most companies but those five years need to show a positive history. A company in business for even 10 years, with several of them in court over fraudulent claims may be a bad investment. It is even better if the company is traded on the stock exchange and their financial history is open to public scrutiny.
Look at the backgrounds of the company’s founders and leaders. Did they come from a similar business or were they pushing brooms for several years until they stumbled onto this unique get rich quick scheme being advertised as a money-making network marketing program. Look for sustainable sales with the products being offered. Selling home loans for example, probably is not good for repeat business and most of the effort will require looking for new business. Every savvy business person knows the easiest way to increase sales is through repeat business from established customers.
Companies that offer consumable products, not necessarily edible but ones the customer will need to buy over and over again such as personal products, paper products or a combination of items that customers will need again in the future. This can help sustain income while other, possible more lucrative opportunities will lose their luster over time. Also, try to determine how the product sales are handled as well as the inventory being sold. Is it ordered online and drop shipped to the customer or will your company have to inventory the merchandise and ship it on your own and your expense?
Training is an important part of any networking marketing business but the knowledge and expertise of your upline is all you have to go on when it comes to effective training. How well they know the product and business will determine the effectiveness of your training. Additionally, how many hours will you be expected to work each week. Although most network marketing jobs allow working from home, putting in 80 to 100 hours a week is not conducive for extended job satisfaction.