The Enrollment Agreement or Terms of Agreement plus Policies and Procedures. These all together are a business contracts, enforceable in a court of law. The Distributor Rights Association says they shouldn't be over 15 pages long. Don't join if you don't feel comfortable about the agreement. If it only pays for signing up new people and not sales of products/services please do not join
OK! IS IT A REAL MLM Company?
How old is the company? Less than a year old the survival rate is less than 10%. One year to two the survival rate is 30%. Year two to three the rate is 50%. Over three years the survival rate jumps up to over 70%. Over 5 year the survival is 90%
Please check if the company owners have experience in Network Company management? The best combination is a businessman and a good Network marketer. As a word of caution, never go with a company with more than two partners, few survive. Do your due diligence on top management including background and financial checks. The biggest failing here is taking the word of an up line recruiter that he, "checked the owners out."
An old MLM Detective is saying “you can change the products, you can change the pay plan – but you can’t change the owner! It proves true over and over.
Please check the company have adequate funding to survive? Lack of funding, even during explosive growth, is the biggest killer of Network Marketing Companies under three years old.
Company Support
Please check the payouts paid promptly on time? Is there a good system for correcting errors? Does customer support provide timely support for questions or problems?
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Please check the products are delivered promptly without delays? Delays may indicate financial problems. Does customer support promptly assist with errors in fulfillment or delivery? This is one of those join a company and test strategies.
Products or Services
The product or service competitively priced? Are they unique and or complex... this is necessary! Would you buy the product (or service) if there weren't an income opportunity attached to it? This is one of the indicators of a pyramid scheme. Money generated not the product (or service) is the focus of sales. A simple question to ask is, "if all recruiting stopped tomorrow would I still be able to make money and would the company still be in business tomorrow."
Is the product (or service) consumable? The reason nutritional and skin care are so popular is that they are consumed on a monthly basis. This monthly usage provides a solid basis for a stable monthly income. Is the product (or service) patented, or exclusive to your company? Do the products meet the needs of a major trend such as baby boomers wanting to stay young?
Do you like the products (or services)? Can you become excited or passionate about them? A belief system in your products (or service) helps you sell them with enthusiasm. This major factor for long term success in NetWork Marketing. Could you truthfully give a testimonial about their effectiveness?
Do the products have a money back guarantee of satisfaction? Do they contain high quality ingredients? Is the product (or service) easily demonstrated? Are there samples available? Is there a product video? Is the product's packaging attractive?
Compensation (Pay) Plan
Is it legal? It should be based on the sales of products (or services) and not on bringing in new recruits. Generally a maximum of Rs 2000/= in product purchases is legal to join a company. The cost to join the company should not exceed what you are comfortable with. You should be able to sell enough of your initial product order to cover the cost of joining the company.
Please Beware of Get Rich Quick schemes, if the money sounds too good to be true, it is usually a pyramid or down line building scheme. A good Network Marketing pay plan will have an overall pay out between 38% and 55% based on the sale of products. Some new companies try to pay out too much and crash.
The compensation plans have a proven history? Can you understand the compensation plan and how to maximize your income as you grow your business? If not, ask your up line sponsors to help explain it to you better. Learn how to place new recruits to maximize your income.
Training
The companies have good systems for providing training on products, pay plan and building your group? Are they low cost and easily available? Will your up line help train you? Will your up line help you with your first sales presentations? Will they do three way phone calls with prospective clients?
What training methods does the company provide? The more the better such as video tapes, audio tapes, conference calls, manuals, newsletters, satellite shows, Internet, plus live local, regional and national training.
Is there Internet support and training? Does the website help you sell products or services? Are there local meetings that you can take prospects too? Are there good quality DVDs, video and audiotapes available? Is there a good Internet web site with information available? Is there a presentation you can learn to do in 5-10 minutes that will catch a prospect's attention? Are there good brochures for mailing? Is there any voice mail system with sales information on it?
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Network Marketing Company and its MLM - Network marketing distributors aren’t forcing the sale of a large amount of product or services. This is called “front loading” or “garage qualification.” to qualify you as an MLM - Network Marketing distributor for commissions. An amount over Rs2000/= is very suspicious. Good MLM - Network Marketing companies don’t require a lot up front when you start as an MLM - Network Marketing Distributor. You need products to sample yourself and to learn to sell, so not having any product purchase is a shaky deal.
Make sure the company actually emphasizes sales to Customers as a part of the company’s marketing plan. The company to be legal actually has to have track record of sales to Customers (that do not belong to the pay plan). Company training should emphasize such sales in their training material. In your computer back office or print out they should show up in your genealogy as Customers (who do not belong to the pay plan. It is confusing but often these are called “retail sales” but they can be at wholesale prices. It is illegal for a company to force you to sell at a specified retail market up.
Make sure the company distributor agreement (that you sign on paper or online) has a buy back policy for products/services guarantee for 90 days up to a year (best). The buy back should return 90% of your money when you return the products. Return of money on services should be prorated to the last day of the month used. Ask to be shown this before you join the MLM - Network Marketing Company
Be sure your MLM - Network Marketing Distributor personal monthly maintenance (or purchase) requirement (qualification) is no more than is “comfortable” for a MLM - Network Marketing distributor and his family to consume each month. A sign of safety is if, your Retail Customer’s sales are counted as part of your monthly requirement. Remember a Customer does not belong to the pay plan nor can they make money.
DON’T join a MLM - Network Marketing Company that makes earnings claims that are not fully documented as average earnings for a particular rank) within the company’s distributor ranks. If distributor make potential “money you can earn” claims on websites – run! If they show big checks
DON’T be in a big hurry to join an MLM - Network Marketing Company unless you like the products or services it offers. If money is the only reason that you are joining? Wait a while and think it over! Consistent top money earners are ones that love BOTH the MLM - Network Marketing product and the MLM - Network Marketing pay plan earnings.
DON’T expect to get rich quick. Any real MLM - Network marketing top earner will tell you it takes time and effort sometimes years to make higher end MLM - Network marketing earnings.
DON’T join an MLM - Network Marketing Company unless your MLM - Network Marketing Sponsor (the one signing you up) makes a commitment to help you with training and your first retail sales.
Make sure in all aspects when you join in MLM Concept and don’t get
Excite when you heard the plan. You have to decide if you want the high-risk route of being a big frog at the top of the heap in a smaller new company pond. Or do you want to be a smaller frog in an older bigger pond with assurance of continued pay for your work?
Wishe you to have a very bright and
Happy networking in your entire life.
