Network Marketing Companies Must Answer These 5 Notable Questions Before You Sign Up With Them
One of the reasons why most online businesses fail is because the owners don’t do their due diligence before starting the business. They see their friend racking in millions every month from his side hustle and they quickly set up shop. They hear that this industry is where the money is now and they drop what they were doing and start up with that industry.?
Most are really suffering from “shiny-object-syndrome”. They are interested in the next fad or trend that will make them the most money. The same thing happens in network marketing.?
Look at these stats:?
This is usually so because people who desire to do network marketing refuse to do their due diligence before joining. They don't ask enough questions. They don’t research. They don’t sample opinions. The just sign up because of the many benefits they have hear is possible in network marketing. Only to leave not too soon when they don't see the big money the anticipated.
So in this article I am going to show you 5 notable questions every network marketing company must answer before your register with them
Question 1: What kind of products do they have??
Every network marketing company has products or services that they offer to the public.??
According to OnlineMLMCommunity the top 5 categories of network marketing products are in the following industries:
But more importantly the questions you should ask as regards products are:?
Is there a need for the product(s)??
If there is no need for a product then there is really no need to offer it to the market. Somebody somewhere has to have a need for the product. Essentially the product must solve a need or satisfy a desire for it to be needed. If the product is within any of the industries mentioned above then there is a good chance that there is a need for it.?Don't take my word for it though. Do you research and find out.
How much does the market need the product??
More important than need for a product is the degree of need. If the demand for a product is low then the chances of it being successful in the market reduces. A simple example is the high need for water in an arid region. Or the need for cool drinks or water on a hot summer day rather than a wet rainy day.?
So find out if the products of the networking marketing company have a high demand in the market the industry serves.??
Does this product meet the need?
Equally important is finding out if the product meets the need for which it was made. This has to do with quality. It also has to do with how well the product creators understand the customers needs. The product needs to be of high quality and be able to sufficiently address the problem or meet the desire of the customer.?
You may need to use the products yourself or look at a lot of reviews on its performance.??
is the product competitive to similar products based on price or quality?
Most network marketing products are well researched and of high quality. For this reason they are a bit pricey. But they are not the only products in the market that go through the same degree of sophisticated production. So if placed side by side on the same shelf with another traditionally sold product (of the same quality) would it compete favourably for price??
This is an important question to investigate. You may need to run a comparative analysis on the price of network marketing products and other products sold through traditional retail channels.??
Is the product priced to sell at a profit??
Network marketers make money from commissions on products sold. This means they are paid a percentage of the profit from the product sales. But the company also has to take a percentage of the sales. So the question now becomes ”Is there enough profit margin for both parties?”
Does the network marketer receive adequate compensation for his/her efforts? Also, is the margin that goes to the company worth their investment? There just has to be a balance if not the relationship won’t be sustainable.?
There is a real life story by Mark & Rene Yarnell about a lady that registered with a brand new start up company. The company was using a binary compensation plan (I will cover this later in post) that paid commissions to distributors who bought products worth $100 and sponsored two other people who did the same.?
In the plan there was no limit on depth, volume was never lost but carried over until a balance was achieved, and distributors could personally purchase up to three positions.?
Armed with this information she went on to recruit her children, husband, parents, siblings, in-laws and everybody she knew. She also trained them to implement the same system she was using. She even created training manuals that the company used to train other distributors.?
?She did so well that her balanced group maxed out their payment plan after only eight levels. As a result of all this, the company had to close its doors.
The lesson here is that the products of a network marketing company must be profitable not just to the distributor but also to the company.???
Question 2: What kind of company is it??
Leadership is always important in the success or failure of a company. Look at the way Steve Jobs revolutionized the technology and communication industry with Apple. Or the way Jeff Bezos took Amazon from a virtual bookstore to the largest ecommerce site in the world. You can learn a lot about a company by studying the leaders.?
So before joining a network marketing company, study the company, especially the founder or CEO.? The leader is the major decision maker and will determine the growth and direction the company will go.?
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Question 3: What is the compensation structure?
The four most popular types of network marketing compensation plans are:?
Other hybrid compensation plans are a mixture of these four.?
Your concern as a person making enquiries before signing up is to find out if people make a return on their initial financial involvement quickly. Quickly here means in 30 days, 60 days, or 90 days. ?
Another concern is for someone with a reasonable part-time effort making a reasonable part-time income. Finally can someone who is ambitious and probably (invested full time) make a lot of money?
If the compensation plan can accommodate these two types of people then it's a plan that is built to last. So before registering, study the compensation plan properly.
Question 4: What kind of support system does the company have???
The human body has 12 systems that support it and make it function optimally. A network marketing company must have these support systems for it to function optimally.?
Back office:
The back office is essentially the software that the company uses to connect with her distributors. All the tools that the distributor needs to manage his/her business are sent by the company through the back office. This is where the company news, events, new products, promos, etc are shared.?
Events:
Network marketing companies use events to create more awareness about the company. Events are used to recognize and reward distributors who achieved one milestone or the other within a specific period. It's also an opportunity to motivate distributors using product and income testimonials?
Training:
A network marketer is a marketer (as the name implies), is a sales person (network marketing is also known as direct sales), is a recruiter, a trainer and an event promoter.?
Learning and excelling at any of these skills requires training. So the network marketing company you want to register with must offer training on these skills.??
Communication:
The network marketing company communicates with individual distributors through the back office, but how does individual distributors communicate with each other??
These social media channels can be leveraged to keep distributors connected:?
Question 5: Is the timing of the network marketing company right for you??
Timing is a very important factor to consider before joining a network marketing company. You need to find out where the company's life cycle is. Startup network marketing companies have a higher risk of failing, but this is balanced by the great potential for reward.??
On the other hand network marketing companies that have been around for a while are more stable and less likely to fail. But the rewards for joining them may be lower.?
Your task before joining then becomes balancing your risk to reward appetite. Which is more important to you??Risk or reward.
Final thoughts?
Five noteworthy questions. All equally important. All requiring honest answers. Of course you are not going to ask the network companies directly. You will get most of the answers from research.
You should also get answers from the network marketer pitching you. That is if he has earned your trust. If not, be sure to carry out an in depth research on the company to answer these five questions.?
If for any reason you can’t get adequate answers to all five questions, a minimum of three is enough to make a decision.?
So which of the five questions is most important to you??