Although Multi-Level Marketing business has very sound
opportunities and prospects of growth and success, however
statics reveals that most of the people who enter
this endeavor face though hurdle. A study reveals that almost
eighty-five percent of the MLM companies fail within the first
eighteen months. Hence for a person it is essentially vital to start
this business prudently. Listed below are some guidelines to follow:
STEP I: INVESTIGATE THE COMPANY
It is critical for the success of a marketer to join a company
that is sound and is viable to enter as a Multi-level marketer.
Here are few points to consider:
• Start with a well experienced company:
In order to enter into Multi-level marketing, it is usually wise to start
with a well experienced company that has been in the business at least
for three years or more. The reason behind is the company itself has
surpassed the initial survival phase and now must be in the growth
stage increasing your chances of success as a marketer.
• Opt for a Public Limited Company:
12 CALVIN CLARKE
Well known and well established public limited companies are not
only safer to enter but also you have high and easy access to the
information regarding the company’s background, its people and its
business and financial strength. It is also recommended to compare
the salary or commission with the average sales of the company that
will indicate you whether it is a good place to start with.
• Select a member of a business bureau:
It is always ideal to join a company that is a member of a
business bureau or registered with the Direct Selling
Association. This will not only ensures the company’s reliability
but also you can make your complains to these organizations
regarding any misconduct by the company.
• Investigate company’s track record:
Essentially important is to look at the company, see how it does
business. Is it on ethical grounds? Check out its track record. Find
out whether it has a stable track record and identify whether the
compa-ny’s values match up with yours. It is essentially important
for long term presence in the Multi-level marketing industry.
Along with identifying a sound company it is also highly impor-tant
to know about the product you have to market. Remember your
success as a Multi-level marketer ultimately depends on the sales of
the product you are offering. Here are few questions to investigate:
• Is the product marketable?
As a marketer it is important to pick up a product that is highly
marketable and has sound qualities and features through which you
can promote sales. Also in order to sell products you need to know
their features. Sometimes it is essentially important to research and
have sufficient knowledge in order to market your self. For example
if you are selling some computer software you should have sound
knowledge of the technology. Hence before picking up a company
a marketer must evaluate these issues.
• Do you your self like the product?
If you like the product your self, it will be easier for you to market it
and hence you can also convince others to become sales represen-
MLM Success Guide 13
tative. Remember multi-level marketing is more of word of mouth
marketing, when you like it your self you feel more confident as you
know the product is good and you are no making fake promises.
• Is it reasonably priced?
Naïve marketers often ignore the importance of price which
is one of the reasons of their failure in the field. It is essentially
impor-tant to ensure that your product is well priced and either it
has got excessive qualities or is comparatively cheaper to other
brands avail-able in the market, otherwise it will be next to
impossible for a marketer to generate enough sales. Also some
companies do offer discounts on certain number of sales, you
must identify the discounts associated to improve your profits.
• Is the product consumable?
In order to generate more commission, try to select consumable
products, as it raises the chances of repeat sales. In addition to that
if your customer likes the product than you can retain him for long
term and hence finally can convince him to act as a sale rep, which
will ultimately increase our future earnings.
• Is there a demand of the product?
Never select products that are obsolete, or are excessively
avail-able at retail outlets. If your products do not have enough
demand you would be wasting your time and efforts for nothing.
STEP III: INVESTIGATE THE COMPENSATION PLAN:
The next crucial step is to well understand the compensation
plan. As most of the times a multilevel marketer is providing dual
service; one as a seller and the other as a recruiter, hence his
commis-sion and compensation depends on both. This is why it
is important to well understand the company’s compensation
policies before hand. Here are a few tips:
• Is your compensation based on sales or recruits?
Remember that it is an illegal practice to pay commission on
the number of recruits. So you must identify the compensation
plan. This will help you focus your efforts.
14 CALVIN CLARKE
• Identify the hidden costs:
Some companies do require paying some initial money or
membership fee to get your self registered as a marketer or sales rep
on companies’ behalf. Identify whether you will generate enough
commissions to cover your initial money paid. Also if the investment is
relatively high be careful as some fraudulent companies do ask for
paying huge some initially. Always refrain from joining them.
• Do you have to achieve any targets?
You must find your targets for example how many members
do you have to recruit. Some companies require that you sign up
a certain amount of people in a given period of time before you
will receive payment. Not only that few companies require you to
cross target level of sales first before paying you. This may
cause problems for new and naïve marketers.
In addition to above there are also few other important points
that guarantees your success as a multi- level marketer. These are:
• Training the sales person:
Some companies do provide training to their sales rep and
MLM marketers about the product features and company’s
profile. Also good companies do train their staff to improve their
marketing skills. It is better to select such company especially if
you are new in the multi-level marketing industry.
• Active involvement:
Some companies also offer a discussion forum where you
can interact with the other members. It is good for you as during
the course of your work a few questions may arise that you need
answers to and you want to get suggestions from other people in
the same company who can help you resolve your queries and
can give you the correct answers you need.
• Take recommendation from the current member:
Always get in touch with someone who is already a member
of the MLM. Ask them their recommendations about the
company and their views regarding the way the MLM system
works in the company.
• Beware of Scams:
MLM Success Guide 15
There are number of fake companies and fake claims.
Beware of them. In the upcoming chapters we will discuss in
detail about MLM scams, which will help you to protect your self
from entering fake companies.
In a nut shell a good company comprises of people who are
committed to products that actually help make people’s lives better,
which see their distributors as their assets and have promising
compensation plans that pay well in return of efforts, that train their
people and are always there to help their people. Hence if you follow
the above important steps, you will be able to select a good MLM
company that will guarantee your success as a multi-level marketer
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