If you’re thinking about joining an MLM or network marketing business, the most important thing you can do to make sure it’s the right decision for you is to ask your potential team leader and other members some key questions first.
These questions will help you determine whether this company is the right fit for you and what kind of results you should expect from your investment of time and money.
Ask these questions before joining any network marketing business, and you’ll be able to avoid many common pitfalls that new network marketers fall into.
1.What Does it Take To Be Successful In Your Business?
Everyone wants to have successful people on their team, but not everyone knows what it takes. Asking your potential new recruit what success looks like in her business can help ease your mind that she’s working towards something and not just floating along.
If she can’t give you an answer or sidesteps that question, that might be a red flag. While some may argue that it’s rude or off-putting to grill someone with questions about income and future goals, being direct up front will help protect both of you in case things don’t work out later down the road.
After all, if money is no longer motivating for your new recruit (and she’s committed enough to tell you), it could point to problems down the road.
Read also: The Best Way to Make Money.
2.Who Can I Get In Touch With Who Already Owns The Company?
Oftentimes, first-time business owners are excited about a product and eager to sign up and start selling. However, it’s crucial that you get some basic information about your potential sponsor and that person’s business—before you decide whether or not joining is in your best interest.
Remember, this isn’t just someone who will help move products—this is someone who could ultimately become your boss! Plus, as more companies offer various ways for sellers to earn money (like bonuses), understanding how commissions work can be vital if you want to make sure that signing up with a company is worth it.
Here are some questions to ask when deciding whether or not you should become an independent distributor:
i) What type of products does your company sell?
ii) How much do they cost?
iii) Do I have to buy a starter kit?
iv) Is there any sort of minimum order required?
v) What kinds of compensation plans do you have available?
vi) How many people are on your team right now?
vii) Are there opportunities for advancement within my area of expertise?
viii) How often do you conduct meetings/trainings with members of your team?
Read also: Network Marketing for Students.
3.What Do I Have To Do To Become Eligible For Bonuses and Prizes?
Network marketing companies have various levels of bonuses. What that means is that they may require you to do something like sell 10, or 30, or 50 products in order to earn your bonus.
This can be hard if you don’t know where your market lies. If no one in your family is interested in what your company sells then how will you reach these numbers? The best way to find out is to ask.
Before committing any time, money and effort into a company, get all of these details straightened out first and foremost!
4.How Do I Go About Getting More Customers?
Network marketing, or direct selling, involves selling your products directly to other people. You might be tempted just to make cold calls or send out mass emails and postcards—and while that can work, there are more sophisticated techniques.
For example, social media is an excellent way of drawing attention to your products and services if done right; using basic targeting tools on Facebook or LinkedIn ads can help you pinpoint your customers by demographics like location, age, gender and interests.
5.Do You Offer Any Paid Training or Mentorship Programs?
If so, how much do they cost? Mentorship is an invaluable resource for any budding entrepreneur, but it can be difficult to find good mentorship. Before joining a new company, make sure that you can get as much training and support as possible.
It’s also worth looking into any paid training or mentorship programs that your potential employer might offer; if your potential employer offers great training options (especially online courses or webinars), that could save you money and set yourself up for success down the road.
Be sure to ask lots of questions! You’ll want all of your bases covered before moving forward with any opportunities. And don’t forget to ask about any upcoming workshops or conferences in your area.
Networking events are another great way to learn more about building a business, so you should always look into attending them whenever possible.
6.How Long Did it Take Your Top Earners To Build a Down line?
Network marketers, especially ones who work for MLMs, are big fans of hard numbers and metrics. If there’s one number they love even more than revenue, it’s net promoter score—the idea that customers are recommending their company to others.
Now for us non-marketers out there, we may not know exactly what that means (although we can probably guess). A good question for your potential mentor to answer is how long it took her top earners (who maybe earns two or three times more than average) to build downlines of ten people or more. That will give you an idea of how long it could take you.
7.What Happens if I Want Out of The Business Later On?
One of the downsides of MLM companies is that they usually want people to sign on with them for long periods of time. A 10-year contract is not uncommon and some require lifetime commitments.
If something happens, such as major job loss or illness, it will be hard for you to get out of your obligations. If your employer needs to cut back your hours or let you go, they don’t have a lot of incentive to accommodate your schedule.
You may even find yourself in court fighting over commissions owed! Check how much control and flexibility you really have in being able to work things out with them if things don’t go exactly as planned.
Make sure there are no hidden costs or termination fees. Also make sure that you know what kind of support you can expect from them when times are tough. It’s always good to know who has your back when times get rough.
8.What are The Biggest Mistakes People Make When Starting This Type of Business?
People starting a network marketing business tend to fall into two categories. The first category, which I’ll call free agents, often have all kinds of experience in networking and sales, but aren’t tied down by any relationships.
Maybe they had an up-and-down relationship with a past company or even worked for one that went out of business. Maybe they just like traveling and want to be able to get on a plane as soon as something catches their interest.
Whatever it is, many free agents understand why so many people fail in direct sales and network marketing: Most people don’t have time or dedication for it.
It’s hard work. It takes time and focus every day to follow through on your commitments. And if you’re not willing to do that, then it’s not worth doing at all.
The second category is people who are semi-loyal. They may have been loyal employees for years at a big corporation, but now they want more flexibility or freedom—or maybe they’ve lost their job due to downsizing or outsourcing.
This group may also include retirees who are looking for some extra income while they continue working part-time jobs such as consulting or other side gigs—anything that keeps them busy during retirement years when social life tends to die off anyway!
Any time you’re considering joining a multi-level marketing (MLM) company, there are certain things that should happen in order for it to be successful.
Ask yourself if any of these things can happen and if so, how likely are they? Do your research online and find out as much information as possible about potential MLM programs.
Asking yourself these questions will help ensure that your business will succeed. If you still have questions after doing your research, consider speaking with an industry expert or someone who has been part of an MLM program.
Read also: Network Marketing Success in 7 Easy Steps.