The Network Marketing business is the most misunderstood and controversial of all the home-based startup options. Also referred to as Multilevel Marketing or Direct Selling business, Network Marketing is an affordable and quick way to start a business from home. However, like many facets of life, you need to ensure that the company you wish to collaborate with is genuine. For this, you need to research and make an informed decision before stepping into the opportunity. If you want to succeed in the industry, its important that you find a genuine MLM business.
Safeguard Yourself – Do Not Follow Any Trend Blindly
There are many instances when people get excited and attracted to their colleagues and blindly try to follow the brand or trend they are into. Doing so can land you in big trouble. Many companies start their operations as a Multilevel Marketing business but incorporate the illegal Pyramid scheme. After duping innocent investors, such companies disappear in no time. Avoid yourself from getting into such situations and getting fooled. You should read the signs of a genuine MLM business and differentiate between the right and the wrong one for you.
Referrals and Word-of-Mouth – A Big part of the MLM Business
Multilevel Marketing is a business strategy adopted by companies to sell products or services using a workforce that is not on their direct payrolls. These companies sell products directly to consumers avoiding any intermediaries or retail stores. The products are presented as a business opportunity by the workforce. The Multilevel Marketing business is built on referrals and word-of-mouth marketing.
Warning Signs Before Joining an MLM Business
Now that you know what Network Marketing is and how it can help you earn decently, you need to ensure the company is legal and genuine before joining it. You could get excited to join the business in a hurry after knowing its potential. But you should do your groundwork well; you should spot the warning signs before signing on the dotted lines with the Network Marketing company.
Warning 01: Company Does Not Have Any Product to Offer
Any good MLM company will deal in products and services that satisfy consumer needs. When a company incorporates a business program that pushes recruiting over sales, it is a clear sign of not a genuine MLM business but a Pyramid scheme. Further, to fool people, the company could even have a product of poor quality, and it is there just for its sake to feel that it is a genuine MLM company. It would help if you refrained from joining such companies.
Warning 02: Compulsion to Buy and Stock Inventory
Most MLM businesses will involve startup costs for providing starter kits and other supporting material. However, it would help if you watched out for those companies that pressure you to buy and stock products requiring additional investment. A few products are okay but filling your space with products can prove futile unless you know the value of those products and remain confident about selling them. So, it would help if you verified such companies and better refrain from joining them thoroughly.
Warning 03: Improper or Vague Response Given Company Representatives
Before joining any company, it is advisable to get all your doubts and queries answered. If the company representatives provide you with wrong answers or vague responses, it should immediately alert you in raising a red flag in your checklist. It would be best always to have strong support and solid training when you join the MLM business. You should get clear details of the compensation plan, the company’s financial position, and the average income earned by their representatives. If you do not get proper answers to these questions, the company is not worth partnering with.
Warning 04: Over-stressing Product Claims by Representatives
A genuine MLM business will always have quality products to offer. If a company representative makes wild claims about their products, such outlandish hype should trigger an alert in you. If on verifying, if you find that the product claims are false and bizarre, beware and use caution. Never tie yourself to faulty products that could even land you in litigation troubles.
Conclusion – It is essential to verify a company before joining it.
We have seen some of the most important warning signs that you need to beware of before joining an MLM company. While some of these could be scams, there could be times when you get a feeling of being unsettled. Though that may not necessarily be a bad company, it is an indication that the business opportunity is not suitable for you. To lay the foundation of building a successful Direct Sales business, you must investigate the company thoroughly before joining it – know its background, know its existence period, know about its financial state, know about its products, and know whether its compensation plans suit you. Once you do that, you all are on course to succeed in the Network Marketing world. Best of Luck.
