With all of the warnings on the Internet about MLM companies that take advantage of the unsuspecting, you’d think that no one would fall prey to one – and yet it still happens. Usually it happens for one of two reasons. Either the questionable network marketing company knows how to talk a good talk, or the person signing on is desperate for money and thinks the company can answer that need without vetting them first.
So how can you make sure the company you pick is a credible one? There are several ‘joiner beware’ signs you should be on the lookout for to make sure you don’t get sucked into a company that’s not worth your time.
Look for a company with stickability. They should have a good reputation and a way for you to see that they’ve been doing business (and doing it honestly – check their reputation) for more than just a few months. You wouldn’t trust major heart surgery to an intern, so don’t trust your time or money to a new MLM business no matter how polished the presentation.
How well can you peek into the history of the company? Are financial records available? If they’re not readily available, does the company get offended if you ask to see the records? While some companies do have a policy that they don’t divulge their finances, they shouldn’t get angry if you ask. Anger is always a sign of defensiveness.
Why is their product any better than what buyers can get at a retail store? Products with a unique selling point (USP) always seem to catch the market by storm and sell really well. What kind of market analysis was done on the product?
What void is the product going to fill? Can that void be filled by someone else? For example, if you sell organic cosmetics but the consumer can walk into a retail store and buy it cheaper and faster, then you could have a harder time proving your product is better buy.
What do bell bottoms, leg warmers and stirrup pants have in common? They’ve all faded from the fashion scene because they were only marketable during a specific period of time. If you’d invested a lot of money and time in those three products and you thought you’d be on easy street because of them, you would have had to start all over once the demand died out. So make sure the product you’re going to sell is something that won’t be here today, gone tomorrow.
There are some important questions you should ask before you join a network marketing company, such as:
· How much income are you going to make and how long is it going to take? You don’t want to constantly be putting up your own money after an initial investment.
· Is the company old school or are they on the cutting edge of what’s new in MLM selling techniques?
· What tools do they bring to the table for you to use?
· Will you have a mentor to help guide you?
· How much time is expected for it to take before you can earn enough to live on?
Verifying the credibility of the network marketing company you’re checking out can save you a lot of grief if it turns out it’s not a good match for you.