5 Things You Should Know Before Joining a Network Marketing Company
Enough of the talk, it's no longer news that network marketing is the fastest route to so many benefits, from owning your own business with little start-up capital to earning passive income even while you sleep to buying your own car or buying your own house.
Although network marketing has been the best decision for many successful network marketers, many have failed at it because they invested in the wrong company. Choosing the right Network Marketing company could be a big challenge, but you need not worry, you reading this article is already a step in the right direction. Here are five important things to look out for before joining a network marketing company.
The Credibility and Reputation of The Company
just like with your friends, I bet you will ditch anyone you know that lacks credibility or has a bad reputation. This should also be applied to the network marketing firm as well. Google is a good place to start from, you can also go a step further by asking credible friends.
Read reviews and testimonials. You should check for the founder and the year it was founded. It is a known fact that 90% of network marketing firms fail within their first two years.
If a network marketing firm is still new and the rewards looks to promising to be true, I suggest you tread with caution, it might be a scam, or it might soon crash since it won't live up to the expectation.
You should also stay away from network marketing firms that are struggling financially or the ones waiting for new members to join before old members get their commission. Be patient and diligent in your findings.
In searching also, beware of naysayers who just badmouth a company it's called hate speech, they have nothing to offer, yet they try to tarnish the reputation of others
What exactly is the company bringing to the table? Some offer products, others offer services. The offering is just as important as the company itself since it uses it to survive. If the company offers nothing, RUN.
There are no two names to call companies like that other than Ponzi Scheme. The best network marketing companies have products of good quality that satisfy a reusable need at a fair price, so your income will not only be limited to recruitment.
The product must be one you can buy on your own outside the firm (bitcoin mining machines). The product should also be one that has a long-term appeal, and not just a short-term trend that would fizzle out with time.
You can't create residual income from a product that cannot stand the test of time. You should also not go a network marketing firm that a restricted audience. They will fizzle out very soon.
The Commission System
Sure, I bet you have been waiting for this. This is, of course, the number one reason most people join network marketing firms. That goes to say that the commission system is just as important as the company itself.
Every network must have a good compensation plan that is in tandem with team members effort. So, check out the commissions in relation to the effort you can make. Some compensation plans are very complex and are paid on a daily basis.
Others are paid on effort basis while others are paid on a product basis. The secret is to avoid the compensation plans that are difficult to explain. Go for network marketing firms with compensation such as the simple binary compensation plan.
Also, check for repurchase plan, some call it re-investment plan (it is an obligation and it is for your benefit). Be wary of firms that charge membership and repurchase plans that are as high as monthly profit for reinvestment plans.
Is the network marketing firm like an elephant on its way to the graveyard? Or is there still room for you to grow. There are some network marketing firms that are about to exhaust what they have to offer. Others are also about the exhaust the people the product exist for.
If you find yourself in a firm like that, then it is time to move on. Or let me put it this way, if you discover that everybody in a community is already a member of the network marketing firm, that firm might have nothing new to offer you.
A company that still has room for growth will give you room for development when compared to a firm that the market is already saturated. With the internet, your market isn't restricted to your town or city, rather your market is the world. So, check if the company has international appeal.
Mentorship and Growth Opportunities
What makes a great company are the leaders and people in it, and not just a good product or a good commission structure. Your success as a network marketer depends on how well you know what you're meant to do.
This creates the need for coaching and mentoring. The company must be genuinely interested in your growth and success, not just it's profit margin. The first indicator of this is by studying the person recruiting you.
If your recruiter is only interested in signing you up and does not show interest in showing you the ropes through coaching and training, then it's a red flag and you should avoid the company. There must be a system in place for the learning and development of its members.
Search the web, does it take a long time for successful people to emerge from the company, or there is a thriving environment for new recruits to grow? Does the company have a proven support system in place to help you grow? Do they organize seminars, audio and video presentations? If they don't, it's best to avoid such a company.
If the network marketing company you plan to join fulfils all the above conditions, then you're good to go. Remember to keep your eyes open, research the company and product well, check for reviews both online and offline by talking to people. Join a network marketing company with knowledge of all the facts and not just empty promises.