These days, everyone is looking for a way to make a few extra bucks. An MLM business venture can be a good opportunity if it has a track record that you can investigate and evaluate. That can be a big “If”. Seek a clear statement of the plan, consider the potential, and know the up-front costs.
Before you invest any time or money in a specific MLM business opportunity, there are some questions you should consider first.
Firstly, how long has the opportunity been in business?
You are about to sink your time and money into marketing an MLM business opportunity, so you need to know how long it has been operating. If this is a new concept that has not been proven in the marketplace, you have no assurance that it will even work.
Does the ownership company have a fixed address and phone number?
This may seem like an obvious point to you, but thousands of companies operate with nothing more than a website and an email address. Many of these ventures are here today and long gone tomorrow. Be certain that the business you intend to deal with has a fixed mailing address, a physical location and an established phone number.
Does the MLM business venture have successful members you can talk to?
Most business opportunities will show you testimonials but these are often untrustworthy, and may even be completely fabricated. Ask the owner of the business for names of real associates to speak with. Contact these people by telephone and ask them to share their experiences and thoughts on the program. This will provide you with valuable first-hand information about the program, and it will give you a list of advisors who might be willing to help you along the way.
How much of an investment is required?
Many proven MLM business opportunities with successful track records will involve some kind of initial investment. Don’t assume that a “free to join” business opportunity is a better investment. Usually, these “free” businesses involve other costs such as marketing and advertising fees. Remember, no one gives away “opportunities” for free. You need to determine whether a specific MLM business opportunity has a successful track record, is managed by honest people and offers a realistic chance of earning money. These points should be weighed against the entry costs.
What is the realistic earning potential of the MLM business?
Take a careful look at the numbers and projections provided by the business opportunity. Then, speak with actual members who are using the program to determine if they have been able to turn those numbers into reality. Are there extra fees such as monthly or yearly subscription fees, shipping costs and minimum purchase requirements? Get a detailed list of all the fees involved in operating this new business. While they may not seem significant now, these fees can easily eat into your profits later.
How much control over your new business will you have?
Be clear on who will own the business and who will control the way it is developed and marketed. Down the road, you may want to diversify your product to avoid being held under the thumb of a “head office”.
MLM business opportunities should require low initial investment and have high profit potential in the short term and the long term. Choose a venture that will allow you to build a profitable business of your own that will be a source of income today, and in the future.
Filed under: Network Marketing