Someone once said that “you can’t start out wrong and end up right”. It is very easy to select your network marketing or mlm business opportunity using the “emotional hype” provided by the mlm company instead of a logical method and end up “crashing and burning” and quitting that network opportunity. Not only has your pocket book took a substantial hit but your self esteem has also “tanked”.
Here are 3 tips you can use to select your mlm business the right way by looking at the mlm product demand, the mlm product profit margin and the mlm compensation plan.
MLM Product Demand:
A legitimate mlm opportunity has a product or service that it markets for revenue. When selecting your on line business opportunity, make sure there is a demand for the product of service that the company is offering. Has your market heard about the product? Does the product have some “name recognition”? If you have to introduce a product that no one has heard about, do you have the “advertising budget” to introduce the products. It is a good idea for your “deal”to have more than one product so it can be bundled with other products of the company. Ask yourself is there competitive products from other mlm companies? If the answer is yes, then that indicates that there is a demand for that service or product. Make sure to review the demand for the product.
MLM Product Profit Margin:
You are in the network marketing business to make a profit. You must go beyond the hype and look at what is your profit margin. This includes the cost of acquiring a customer. When you first start out with your list of “100 friends and family” that many mlm companies tell you to put together, how much time, effort and money will it cost. If the retail cost of the product is $50 and you make $5 on each sale but it costs you $10 to acquire the customer, you are starting out losing $5. The bottom line is that you join a network marketing business to make money. You should try and find a mlm company in which you can make 50% of the retail price as profit. This will keep you from losing money. The lowest percentage you can stand should be set at 25%. I have a friend who made $30,000 in a network marketing company but it also cost him $30,000 which means after 4 years of blood, sweat and tears, he broke even. Be sure to check out your product profit margin.
MLM Compensation Plan:
Most network marketing companies have compensation plans that are explained in great detail and from the “hype”, everyone has an equal opportunity to have some degree of success in their plan. Many plans are the “forced matrix” or binary which seem to be the most popular. What you want to know about the plan is whether it is a product driven or recruit driven plan. Does the mlm company’s compensation reward selling product more or recruiting more? Does their landing page push the product or the deal? By answering that question, you will be able know if you fit their deal. If their deal dosn't fit, move on.
James a byrd is a life coach, mentor, network marketer, Dale Carnigie graduate and published author. For more articles and resources to help with your success in home business, Network Marketing and mlms; go to http://whatmlmermustknow.blogspot.com For a FREE ebook to enhence your chances for success in mlms, network marketing or on line business; go to http://Jahmer.successin10steps.com
Article Source: http://EzineArticles.com/?expert=James_A_Byrd
No comments:
Post a Comment