Choosing the right MLM to join

[whateverittakes]

How do you choose the right MLM or Home Based Business?

Choosing the right home based business is a very challenging task. It�s a minefield for someone who has little knowledge of the home business market, but wants to start a home business and enjoy the rewards it can offer.

Where do you start and how do you evaluate which business will be best for you?

I will share with you my experiences and how I selected the home business opportunity I run very successfully. It has been a long journey, but great learning experience over the last 10 years of my life.

I always had the mindset of an entrepreneur. It started when I was at school and used my artistic talents to write �sick notes� for 50 pence each. I also used to forge bus passes for 30 pence each� Morally wrong I know, but I always liked making money for myself! I did lots of wheeling and dealing, buying and selling to make money from the ages of 13 up to 22 years old.

Over the years I dabbled in many different home based businesses including �E-bay buying/selling and Affiliate Marketing. I was reasonably successful at both for a short period � making a decent part time income, but it was short lived as the market became more saturated and competitive. I�ve also extensively researched many home businesses in a quest to find the best one to be my vehicle of fortune. These include stock market investing, real estate investing/brokering, online retail stores and a few more.

I concluded that the best home business where the average person with little start up capital could be very successful is in MLM (Multi Level Marketing) or often called �Network Marketing�. You can invest a small initial amount, then make some personal profit finding and selling to customers� Then you simply find other people who want to make money and teach them to do the same. Those people then find more people and you get a % commission from the MLM from everybody in your �group� or �organisation� that sells products/services.

In my opinion - It�s far better than other home businesses because it generates residual income. This means that you get paid from other people�s efforts and sales, even if you stop selling products yourself. In MLM you can work hard for a few years and then if you want to, just sit back and do a few hours work per day whilst your team and your money grows for the rest of your life. Consider this against other home businesses where your income stops if you stop working and where your income will always be directly related to the hours you work on a weekly basis.

Not only that � MLM (with the right company) allows the average person the opportunity to be making �20,000 (US$40,000) per month after 5-10 years hard work. Most home businesses can never go that far.

In the UK - I first found MLM 10 years ago with Amway. I was blown away by the top money makers income testimonials which were �10,000 - �20,000 per month. I signed up being very na�ve and thinking it would be me in a very short space of time, but I personally found it difficult to win people�s confidence aged 22 with no background success and after about 4 months �Selling the dream� I quit and moved abroad for a while.

Since then I�ve looked at 7 different MLMs � attended lots of meetings and then finally found the MLM that seemed to offer me the best opportunity. I�m pleased to say that my long journey and experiences have paid off and I have become very successful in my MLM.

OK � So what really constitutes a good MLM company?

Industry & Market:

Many people say that the most important thing in MLM is the products. Even before products we must consider the industry � The size of the local, national and global market. How much is the industry growing? What are the market demographics? Is it likely to phase out or does it have longevity? There are many MLM�s with great products, yet these products have little market demand, they are often hard to sell because the industry isn�t big enough � You need to choose a �boom� industry that will last and grow for a long time.

The MLM company itself:

Global infrastructure � How many countries does the MLM operate in and does it actually have offices in these countries. Some MLM�s are restricted to one country only� This doesn�t mean that it�s not successful (some legal services MLMs run in the USA only and are very successful) �But generally the better MLMs should have a good presence in a large number of developed countries (UK, USA, Australia, Western Europe). This gives you greater long term scope for international expansion with your business. If you are looking for potential recruits and you are restricted to one country, then you will be competing against everyone else in your country � This makes marketing more difficult. When you have more countries to recruit in, the world is literally your oyster.

How long is the company established? � Again, there are some new MLMs that have great potential, but you must consider the company�s track record. If it is fairly new it is higher risk. If an MLM has been established for +5 years and is continuing to expand and increase its turnover then it scores more points when evaluating. Many MLMs started up years ago and increased at a phenomenal rate, then went bust because the business plan didn�t have longevity. Many people made lots of money with some MLMs then lost it all overnight as the MLM went bust � Be wary of some new MLMs that �claim� they are going to be the biggest thing since sliced bread.

Turnover & Financial backing � The turnover of an MLM is the truest measurement of it�s success. MLM�s that have annual sales in the high US$millions and even US$billions score more points when evaluating. It means they have a solid network with many distributors & agents selling lots of products. This indicates it�s easier for the average person to come in and achieve success. An MLM having backing from a number of large financial companies indicates the long term future of the MLM as these companies will only invest in ventures that are absolutely profitable & have massive growth potential.

Products:

The strength of an MLM�s product range is sometimes overlooked, yet one of the most important factors. Products are the lifeblood of an MLM�s success � It�s no good having a great compensation plan offering 30% commission on 20 levels down if products don�t sell well. Quality of products is key � You need to have a personal passion for the products and be a consistent user, weather it�s legal services insurance, household goods, Internet, Nutritional or skincare.

Position in the market place � The products should have great standing in the marketplace. Some nutritional companies have unique products in their respective countries: This puts the MLM in a very strong position in that market. If the products aren�t unique, then they should be in the front runners of the market place in terms of value. They don�t always need to be number 1, but they do have to have great market value to enable distributors/agents to sell well�. I know MLM agents that just couldn�t make it work because their products were too expensive and not as good quality as some high street brands, so they couldn�t sell it.

Saleability/Cost & Profit margin � The products should be good enough for the average person to sell them. Most people that come into MLM don�t have a sales background, so the products need to have exceptional market value for the average person with a few weeks training to sell them in the market place. It�s no good having a great product if it�s too difficult to communicate the benefits to the consumer. Even if you are knowledgeable about the product/industry � You must ask yourself �would the average person be able to sell these with some personal use and some training�.

Successful MLMs sell products that are purchased on a regular basis by regular customers. Durable household goods, Weight Loss, Nutritional, Skincare, Internet usage, legal insurance are all products that are re-ordered on a regular basis. This means that once an agent/distributor has got say 20-50 regular customers he should be doing �1000($1800) in personal sales per month. He is then making a consistent regular profit which gives him 2 things: (1) is personal profit to spend outside of his business (clothes, car, holidays, better house etc) (2) is money to spend on recruiting other distributors/agents. I looked at MLMs that sold bigger ticket items with high sale value, but no regular re-ordering � I concluded that there was little scope for long term growth in these types

Tools & Systems � The best MLMs have good tools and systems for both selling products and recruiting new distributors. These include:

Websites with built in auto-responders that email prospects on a regular basis
Recruitment tools � Audio CDs, CD-ROMs, Online presentations
Training websites with good communication systems where you can talk to other distributors/agents including your mentor and your downline � Online forums etc

MLM is a person to person business and in my opinion will always be a person to person business. Verbal communication will always be king, but the best MLMs have websites and other tools that enhance this to make you more successful and run a more expansive and efficient business. Be wary of MLMs that have no additional tools apart from an Audio CD for recruitment

Compensation Plan: How much can you make?

This is the most complicated part and most hyped part that MLM companies will use to interest new distributors. You�ll often hear MLMs saying they have the best compensation plan in the industry. �20% on all levels forever� �Double matrix with exponential downline profits� are the kind of things you�ll hear.

Companies will show you income testimonials that defy belief � There are people who have made �100,000+ ($200,000+) in their first year, but don�t be fooled into thinking this will be you - These testimonials aren�t typical and less than 1% of people that join actually make that kind of money. If you are the 1% of people that have extraordinary skills, ability, drive and worth ethic then you can earn that sort of money in MLM, but look within yourself and ask yourself if you are that good and more importantly will you work 90 hours a week, come rain or shine�. If so � Then you will make big money with the right MLM.

With regards to how much you WILL make if you are an average person with average skills and abilities � 90% of this is down to how hard you will work, but you have to give yourself the best chance by choosing the best MLM. Don�t get sucked into the compensation plan hype. The best way to evaluate this is by looking at the MLM company in full and consider all of the information I�ve detailed in this article. Find out how many people in the MLM are actually earning the money you want to earn.

If I was starting out looking for an MLM, I would do exactly what I did 2 years ago and be very sensible and methodical about my selection. Treat it like a job apart from the fact there is no deadline and the position will always be open for you.

1. Don�t jump at the first opportunity you come across. Certainly don�t invest a great deal of money until you are certain the MLM can give you a long term future of success.

2. Look at several opportunities and narrow it down to 3 or 4 that look the best

3. Send for an information pack first. You often will have to pay for this. The best MLMs usually offer an info pack on CD-Rom that you must purchase, but will be refunded if you don�t go ahead. Trust me on this one � I was determined to never pay for info, but I learned that many MLMs that give you a free info pack on Audio CD do so because they are desperate to get you to join. Paying for information is a small cost you must accept as part of the process � Usually you will get it back if you don�t join. I have spent approx �100 gbp/US�180 in total on info packs and I got most of it back with the ones I didn�t join.

4. Go through the info packs and arrange a call/interview with all of the agents/distributors you got the info packs from. On the call � ask them lots of questions that you have pre-prepared and you don�t fully understand from the info pack. Don�t let them talk at you and have them sell you the dream. It�s like a job interview and you should ask as many questions as they do.

5. Choose the top 2-3 and go to a meeting or seminar for each of them � Again you may have to pay for this, but don�t be put off � It�s a small cost you must accept as part of the process. I went to some free seminars and they were worthless, yet the MLM I actually joined cost me US$70/UK�40 as a guest at their seminar.

6. At the seminar or meeting � Firstly don�t judge based on how many people are there. It may be a small local or regional meeting as opposed to a national meeting. Talk to as many people as you can and get a feel for it. Don�t just sit at the back and let the speaker dazzle you with his story about how he made 1 million in his first 2 years and his photo of his Ferrari. (Don�t get me wrong I love MLM and the fact that these stories could be you in 2 years time) Talk to LOTS of people at the seminar and see how much they are making. Ask them what they really get out of their MLM business financially and personally. Talk to people who have been with the MLM for different levels of time. Talk to people who�ve been in for 6 months and people who�ve been doing it for 3 years or more.

When you�ve done all this, select the MLM company you want to join. You will usually have one of 2 choices in the MLM you choose � Products or Services. If you join an MLM that sells services, usually you don�t need to buy stock as you will just be selling a service (telecoms/internet/legal services etc). If you choose an MLM that sells products, then usually you will have to buy stock.

With product based MLMs (Nutritional, Skincare, Household Goods) Your initial investment will usually be relative to the discount you buy at. For example if you buy �500 of stock you may get it for 20% discount off retail price. If you buy �1000 of stock you may get it for 40% off retail price. It�s like any business � The more you buy, the bigger the discount.

Choosing between products or services MLMs - It may seem at face value that an MLM that sells services is the best choice because you don�t buy stock, so there is less initial outlay and less risk. This may be true, but most of the services MLMs offer less discount from retail than the product based MLMs � This means that with a service based (telecoms / internet) it�s likely to take far longer to make bigger money�. This was a big factor for me and one of the reasons I chose a product based MLM (however don�t let that dissuade you from a service based MLM � I personally know service based MLM agents that are very successful)

I certainly don�t claim this article to be �The Holy bible of MLM� and many MLMs that are truly great opportunities will not have the high scoring attributes I�ve suggested are important. This is merely a guide that I hope will serve as useful information to anyone looking to join an MLM company. 2 great books you may also wish to purchase to help you in your decision are:

1. �Your First Year in Network Marketing� by Mark & Rene Yarnell
2. �The Wave 4 to building your downline� by Richard Poe

After years of trial, error and research I carefully chose the MLM I am with now. I started part time and now do it full time. I started 8 months ago and last month I made �2,300 from personal sales and commission from my team.

I was fortunate that I was found by a great mentor and we are the fastest moving team in our MLM worldwide. I work every hour I possibly can because I am hungry for success and I love my business. I get great personal satisfaction from the products I sell and helping my team grow their finances, themselves and their businesses.

I�ve got no doubt whatsoever that I will be making �100,000 per year within 3 years and that I will become a millionaire in 5-10 years. This is all possible because I chose the right MLM. If anyone is thinking about starting any kind of home business and would like further information on the business I�m with, then send me an email to [email protected] � I will send you some information for FREE to look at.

Good luck on your quest and chose carefully. If you choose unwisely it may cost you uneccesary time, effort and money.

[successcoach]

A great article!
I think this will be a good addition to the info:
It is very rarely that people look and find opportunities in MLM. In many cases instead of finding an opportunity an opportunity finds you.
People join for many different reasons and very often with little consideration for the company.
Most people join people, not companies, at least this is how it works here, in the US.
People want to work and associate with people we know, like and trust. The company just provides the vehicle for products and compensation.

However, when evaluating an opportunity, please remember to read the policies and procedures.
You are joining, after all, to create passive income and want to enjoy the fruits of your labor long after the work was done.
There are many companies that have certain regulations and language in their P&P that are not distributor friendly, that allow for easy terminations, force legal dispute resolution instead of mediation.
There are big well known companies with histories of law suits against them bu wrongfully terminated distributors.

Another inportant issue is the comp plan. Many companies have plans that come from the era when accounting wasn't done on computers, so they operate stairstep breakaway plan. In the past distributors on certain levels had to write commission checks to their downline themselves, so the plans were structured like that. Today such plans take money away from successful distribtutors when their downlines begin to grow. To give an example, Amway, Nature's Sunshine, Herbalife, Wachters have such plans. They keep these plans even though their computers calculate the checks because it is lucrative for them, not the distributors.
About the products - they have to sell, they also have to have a certain measure of exclusivity.
Costco just recently started carrying Noni juice that is the same recipe as ofrfered by a well known MLM. It is hard to compete with them because they offer a quality product for half the price. So researching a product is vital.
A product driven company vs business opportunity driven - important as well, even more important than having the international reach. If a company gets money not by selling product/service but by signing up reps it is a reipe for disaster. This is what recently happened with Excel and their encoding bonuses that ruined the company.
Want to know more?

[jh1480]

[jh1480]

I am sorry. I was qouting above, but forgot to post the reason why. I had many friends in Excell and Prepaid Legal. Some of them were the top dogs. It was sad to hear about Excell fading out. However, those leaders are now part of a team in a new MLM. Once a MLM leader, always an MLM leader.

I took a trip to Silkes site. The first thing that struck me was the picture. I must admit, very attractive.

Sorry Silke......

[silke247]

Hi JH and welcome.

Don't worry, I get that all the time!
I used to be a model so it was my fulltime job at one time - having my pictures "enjoyed".

I agree with your comment "Once a leader, always a leader" - those are the people I most like to recruit - Leaders. My latest article is about that very subject. We're not supposed to post articles here, but if you've been to my site already it shouldn't be too hard to find (or just search for me on Google - it's indexed already and has been picked up be several ezines)


Silke

[successcoach]

Hi, jh1480

In response to your question on how to market a product that everyone needs:
I owned a health business for 7 years and I found through my business and also from smart biz trainers that people don't buy what they need.
They buy what they want.
A quick example - I see a person who is in dire need of good nutrition, and he tells me so and then says that he can't afford to buy the product that is specific to his needs because he had lost money gambling.
Think how many times you have come across similar situations in your life.
Or when women buy clothes and shoes - it is not of necesity, most of the time, but because they want to buy.
What you've got to do is make people want your product.
Since you are an individual and can't afford to market to the whole world, your best bet is to focus on one category of people and market to them.
A specialized market. For example, not far from my building there is a store that markets wigs to women after chemo. Many women could use wigs, as everyone may have a bad hair day, or want to look different, or do crazy things, but not to their own hair. However, these guys have chosen a specific market and target only these women with a special need and the desire to look beautiful.
So, once you identify the benefits of your product to a selected group of people. focus your marketing on reaching that group.
The nice thing about your product is that you will meet new people who will focus on other groups of their choice so you will naturally go into the next market through these people. If the product really works, you will have stories to share because stories usually sell products the best.
Another example, everyone needs a food water filtration system. A niche market to approach is pregnant women or women with toddlers because you know where to go to reach thins group, just as those women who sell wigs know where to go to find their type of customers and get targeted advertising of their product.

[tiscalian]

I thought i was reading Randy Gage there, when you said people don't buy what they need - they buy what they want!
It's our job to tell them what they want!
A little gentle persuasion never did anyone any harm!

[silke247]

The Health and Wellness industry has long been documented as the next multi trillion dollar industry. Many people know of Paul Zane Pilzer and his works, and many companies endorse and quote his words and theories.

Often it is not just a case of telling people they need these products - or telling people they need to be a part of this great new "Industry" - but putting the info out there in the proper way.

We all want customers who will buy and use them.
We want customers who recommend them.
We want people who sign up as affiliates and sell them.
We want affiliates who use them and recommend them.

My Group have been leading with products for a long time. As well as making sales, a lot of people see the products and realise that they too could sell them. They sign up to do just that. THAT is what Network Marketing is all about after all.

This is a great and honest piece of ad copy:


The wellness industry � of which multivitamins and antioxidant supplements are a part � continues to grow by HUGE leaps and bounds. Even better, forecasts indicate this growth will continue at an exponential rate for the foreseeable future:

We are now at the very beginning of the next trillion dollar industry�an industry that will impact almost every aspect of our lives and achieve $1 trillion in sales within 10 years...

Today, almost 50% of Americans take some sort of nutritional supplement, and industry sales for these products exceed $70 billion. Yet the vitamin and mineral industry has barely scratched the surface of what is possible, for we are just beginning to understand the biochemistry that explains how vitamins, minerals, and other supplements work.

- "The Wellness Revolution," Paul Zane Pilzer

The exploding future of the wellness industry means that now is the time for you to take advantage of this incredible growth and stake your claim in the wellness industry TODAY!


We have used the headline "Join The Wellness Revolution" with this ad and it has worked well for us.

(In fact the headline "Join The Revolution" is now the banner on the SFI primary Lead Gateway)

We now encourage affiliates to make sales by offering an 80% commission for retail sales made through their website store, and a wholesale program with 67% discount.

With Network Marketing offline, moving to online, and moving into the Post Industrial age it becomes a case of providing what people want - and giving them a little "gentle persuasion" to let them know what that is!


Silke


P.S. Since this thread started James (JH1480) has joined SFI on my team and in the process of building his sales team. Network Marketing at it's best!

[jh1480]

I do want to thank Silke for her help. I have learned much in the past week about marketing. This is a learning experiance and I can not wait to pass on what I know now to someone else to make the same life changes.

Thank you Silke.

[Jennifer]

Just to add to this topic of choosing the right MLM, having a supportive upline is one of the most important keys to your success in this type of business.

Unfortunately, it can be difficult from attending meetings to tell what kind of support you will receive from your upline, but if you talk to enough of the people in the business you should be able to get somewhat of an idea.

The first MLM I joined is one of the largest MLM companies around, but the support I received from those who sponsored me was very limited. I live in northern California and joined from an ad in the local newspaper. The people that placed the ad lived in Seattle, WA. I don't think they had been in the business very much loner than I had and therefore weren�t very much help. But because of the structure of the company, they were really the only people I had to call on for support and training.

The current company I�m working with, however, has given me more support than I ever expected. I can call my direct sponsor whenever I have any questions. I can even ask those who are many levels above me for ideas and strategies to grow my business. The man that first started in the business in this area 3 years ago has over 2,000 people in his organization. But he is just as eager to help me build my business as the people he�s personally sponsored.

This is what separates the companies who will last apart from the ones that won�t.