Evaluating Network Marketing and MLM Companies
Posted in Watkins Business by Eldon on September 15th, 2006 When considering a home business opportunity, specifically a network marketing or MLM business, it is important to take a hard look at the company behind the opportunity.
What is the company’s reputation? Is the company risking your livelihood (and theirs) by allowing bogus product claims or “get rich quick” testimonials? Does the marketing plan encourage the illegal practice of “buying in” at higher levels to achieve greater profits for the upline and company itself? A company must be diligent and on top of advertising being done in the field as well as all claims being used. The Attorney Generals in many states are cracking down hard on companies who “look the other way” when their representatives are violating the law by making ridiculous and unsubstantiated income and product claims.
Take a close look at the company, its management, and their philosophy. Like any other industry, the failure rate for new MLM/direct sales companies is very high. Probably 90% or more of the new start-up companies don’t make it past two years. They may be seriously underfinanced or have poor management that can’t handle the sporadic and often unpredictable growth of a new business. If you have committed to a new company and they fail after a couple of years, that means that you have wasted all of your effort and commitment, and must now start all over again somewhere else.
How long has the company has been in business? Is it growing? If it is less than 3 years old, it is considered very risky to join. Are bonus checks being sent out on time and is product being delivered in an efficient manner? Although you are an independent representative, you are still at the mercy of the company when it comes to getting products and getting paid.
When you have found an opportunity that looks good, investigate it thoroughly. To earn the long-term residual income that network marketing promises, the company behind the opportunity must be stable with a good history of performance.
About the Author:
Eldon Beard is a Watkins Manager with Associates All Across the USA and Canada
