Friday, April 02, 2010

Network Marketing Tip-You Gotta Have This Pillar!

Network marketing is a business that can help the average person create a lifestyle of freedom, financial independence, and wealth. However, many distributors struggle and can't seem to make it work. They feel much frustration. The problem is a lack of the right mlm information and failure to become a critical thinker.

If you are looking to join a network marketing company or simply want to research your current mlm opportunity, there are five specific areas, or pillars, that you should carefully consider. These pillars will help you avoid pyramid schemes and mlm scams that are out there. Following these 5 network marketing tips can save you years of failure and frustration.

This article will cover pillar #1, the most important of all the pillars. If this is not in place, the others won't matter much anyway!

Pillar #1 is company management experience with integrity. In other words, does the company management have the personal experience building a downline? If so, have they done so with honesty and integrity? All this means is if they know what the heck they are doing!

Here are a couple of areas for you to take a close look at:

-Policies and procedures. Understand them and make sure they are fair! This is a legally binding contract so don't put your John Hancock on any line unless you clearly understand what you are getting in to! For instance, phrases such as "termination with or without cause" is a red flag.

-Is there a charge for each paycheck the company sends you?

-Does the business company's contract have lots of  "on-going" phrases?

-Is it a "cash only" business?  Red flag!

-Can you buy top positions? Red flag!

-Are special deals offered? If so, there is an uneven playing field!

-Is the mlm opportunity publicaly traded? If so, be aware that all financial decisions will be made in favor of the company's stockholder's and not the reps!

As you can see, there are many areas to look at before you join a company. If you are someone who desires to retire some day with a rock star income, please become a critical thinker. Always carefully evaluate your mlm company. It very well can save you years of failure and frustration.

Sunday, March 28, 2010

MLM Information-No Luck in MLM?

Today, there are many people in work from home business opportunities. One particular home business which seems to teem with frustrated distributors is network marketing. There are many reasons why reps may be struggling. These include a lack of skills, a lack of a duplicatable training system, poor company management, policies and procedures with a lot of "gotcha's", etc.

There is another area that distributors miss which is unfortunate because overlooking it can keep them garage qualified and cut into their earning and profits. This has to do with products.

No question, all legitimate mlm companies have remarkable products. The question to ask is, are the products priced so high nobody can afford them?

You see, there are 9 main manufacturing most mlm companies send their nutrition product formulas to to be manufactured. I think most reps would be correct in believing that since this is the case, the product price should be within pennies of each other. Then, if the quality and quantity are the same as well, why the big difference in prices?

Here is what usually happens. Because the the retail price is high, it is easier to sell at wholesale prices. This drives a whole lotta recruiting and getting prospects to sign up with the deal because after all, the wholesale price is much cheaper.

But the question remains, why so high to begin with which necessitates the recruiting hunt. Well, many times, companies are publicly traded which comes with a whole lot of expenses, including making sure the shareholders are satisfied and paid. In addition, some companies have huge overheads such a jets, bid multi-million dollar buildings, and other similar things.

No matter the case, it is clear these expenses will drive up product prices as the companies need the money for all these fancy extras. The bottom line for you as a rep is if the product is to high, you won't be able to build successfully since no one will buy the product.

So, if you are struggling in mlm and understanding why you can't make your home business work, your lack of success is not your fault. It could be the cards are stacked against you. Learn all you can, get educated, so that you can choose a company where you can achieve success.