Now that you know how a multi-level marketing and a network marketing company works, you are ready to signup.
Stop the Bus!
As with anything, it is important to ask the right questions, especially before signing up to a contracted agreement. Signing up for any Multi-Level Marketing Company is no exception. The terms of the sign-up or contract can vary widely from one company to another.
You can feel quite confident that established companies have properly outlined terms and should be easy to understand and upfront about their terms before signing. Otherwise, these companies would not have lasted for so long.
I would be more cautious about companies that are newer and where the representatives are secretive about the details before you sign.
It is the same with any business deal, if it doesn’t feel right, it may better to just walk away.
My first general rule is trusting my gut feeling. It’s not always right, but if it doesn’t feel right, I would, at least, be a little more cautious and ask more questions.
My second rule is to sleep on it before signing up for anything. Again I have been guilty of jumping into things before, and luckily I was able to get out of the deal when I needed before the grace period was over. Most times I do sleep on it, and it is amazing how things are much clearer in your mind the next day to make a confident decision.
So without further ado, here is my list of questions, in no particular order of importance, to ask before signing up to any MLM.
- What are the products? How many products are there? Make sure you understand all the goods and that you feel confident you can stand behind them when having to explain what they are to others. Sure some up line representatives or motivational speakers will say it doesn’t matter what the product is. That people will buy in just for the business side of things. Sure that may be true for some people, but I don’t believe in that type of selling. Sure you can sell and make a living that way, but how long will it take that what you are doing feels just like another job. If the product is not something you believe in or feel passionate about it won’t be long you will become discouraged. Especially when sales don’t go so well. So understand the products – feel good about the products. If it is something that helps people, it will help you push through for the long run.
- What is their compensation package? How does it work? This is where things can get complicated. The representatives may be pulling out graphs, and draw pictures and showing complex algorithms. They will point out parts that sound tempting, such as residual income within a short period by signing up just “x” amount of people, which you can start earning income just with some close family or friends that sign up. Great bonuses and of course, most have a flashy car bonus with excellent pictures or videos of people getting their new car. We are naturally drawn to car rewards like moths to a light. At this point make sure you stop and ask details about all the levels of compensation. If they seem to be hiding some aspects, again this should raise some red flags, and if you don’t feel comfortable wait, do more research before making any decisions.
- What type of support or training do they offer? Most MLM companies will have supporting documentation about their product. When they are pitching the product or business aspect, did they seem to know what they are doing, did they have an upline member with them to help? This could be an excellent indicator of the training and support that is provided. If the person was alone or with other members and didn’t seem to know what they were doing red flag.
- If after you sign-up, can you opt out easily, any costs associated with getting out, do they have a grace period for a full refund? These are important questions to ask to ensure you always have a way out you are comfortable with at any stage of the business. If you are new, did all your research before signing, but once in, you start to see this isn’t for you, they should have a grace period for a full refund. Most will or should have a 10-day full refund policy. If you decide that, at some point down the line, you can no longer continue, check to see if it will cost you anything to opt out. There is nothing worse than a surprise administration fee to get out of the business.
- What are your minimum purchase requirements? Most MLMs work with each new member having to buy a starter package, prices and size range from company to company. Then you will likely require a minimum monthly purchase or minimal personal volume to maintain your independent distributor status. Make sure that the cost is not prohibitive if sales or the business takes more time to make a profit. Worse case scenarios should be part of your business plan before signup.
Any additional fees to pay for training, tools, support or renewal? Ensure that you understand all the costs that may be involved to maintain your MLM business. As mentioned with the minimum purchase requirements, bad case scenarios should be part of your business plan. If you had no customers or downline members, ask yourself, how much will it cost me per month to maintain my membership and can I afford it?
- What expectations do the upline members or company have for attendance? Some companies or upline representatives may have a minimal amount of time you must spend attending meetings, presentations, training, webinars or quarterly /annual forums in cities far from home. These expectations can cause strain on your work /family balance let alone financial costs of traveling, eating out and staying in hotels.
These would be my top questions to help you, not only to choose the right Network Marketing Company but whether you should even become one.
I decided that MLM is not a good fit for me and decided to Affiliate Marketing as my prime home base business.
Click here ====> to read more about what I have to say about Affiliate Marketing!
My wife had signed up to an MLM you can check out how we feel about it now by checking out the following blog.
If you have any questions or like to add some information I would love to hear from you, put it down in the box below.