Making The Most of MLM Business Opportunities
An MLM business opportunity that has a potential of success will either have a track record that you can research and evaluate or it will have a clear statement of the plan and the initial costs involved.
Before investing any time or money in a specific MLM business opportunity, there are some questions you need to keep in mind:
1. When did the business start operating? If the business model is relatively new and it has not yet been proven in the marketplace, you do not have any guarantee that it will succeed.
2. Does the company have a fixed address and telephone number? Although this appears to be obvious, the reality is that there are considerable number of businesses operating worldwide with only a website and an email address. A significant proportion of them remain operational for only a brief period before disappearing from the scene. It’s highly advisable that you ensure that the business you intend to deal with has a fixed address, a physical location, and a telephone number.
3. Does the MLM business opportunity have some successful members with whom you can communicate? Can the business provide noteworthy testimonials – be mindful that many such testimonials are invariably untrustworthy. They could even be completely fabricated. Don’t be hesitant to request from the company some names of existing members with whom you can discuss the potential of the business. Contact them and ask them to share their experiences of using the program. This will not only provide you with valuable first-hand information about the program, but it will give you a list of mentors who might be prepared to offer advice or guidance.
4. How much initial investment is required? Quite often, proven MLM business opportunities with successful track record will require a certain amount of initial investment. Do not assume that an MLM business opportunity that is free to join is a good investment. Usually a free-to-join business will involve other costs such as marketing and advertising fees. Be mindful that there are very few genuine opportunities that are given away for free.
What you need to figure out is whether the particular MLM business opportunity you’re interested in has a history of success, and is managed by honest people and offers you a realistic opportunity of making money. Those are crucial aspects you must consider against all initial costs.
5. What is the realistic income potential of the business? Take a close look at the figures and projections provided by the business opportunity. Then liaise with existing members who are using the program to determine if they have been able to turn those numbers into reality.
6. Are there extra fees such as yearly or monthly subscription fees, shipping costs, or minimum purchase requirements? Ensure that you are provided with a comprehensive list of all the fees involved in operating the business. These things may appear to be inconsequential at present, but they can reduce your profits significantly.
7. Will you have total or partial control of your new business? Have a lucid understanding of your position and responsibility in the business – who has the responsibility of development and marketing? Also consider diversifying your product offerings in order to avoid being totally reliant on one corporate head office.
Keep in mind that as a general rule, MLM business opportunities should require low initial investment and have high profit potential in both short and long terms. It ought to provide you with the opportunity of building a viable and financially successful business of your own that will be a source of income for the present and the future.
I hope that this article has provided you with an insight into the potential and probable pitfalls of MLM business opportunities. I will be providing further articles on this subject.