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Important Decisions Before Entering Network Marketing Plans

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Consider the Products:

Most companies that market their products through distributors have quality competitive prices. On the other hand some companies are way overpriced have questionable values and are absolutely unsafe.

Practically every service or product that can be sold through multilevel marketing, which includes health, beauty, fitness and other products that aren’t available on store shelves. Requires you to be very skeptical before buying or selling their products that are advertised as super ingredients or have guaranteed results. Most of these quick fix solutions are unproven, and marketed fraudulently because they are basically useless. In many cases they could be very dangerous. You should always check with professionals before using any of them-or selling them.

If you decide to join a program and promote the products, you must be sure that the network marketing information is truthful and that there’s good evidence to back up the claims You are making. This means that before using any claims and repeating what the company has said about a product verify that there’s competent and reliable research to back up their claims.

Learn More about the Company:

Study and research the company’s track record conduct a progressive Internet search with the name of the company using keywords like review, scam, or complaint. Scan several pages of search results. Also research the company in newspapers magazines and other areas.

It’s extremely important to find out:

• Has the Company Been Sued for Deceptive Practices

• Do They Have a Positive Reputation for Customer Satisfaction

• How Long Has the Company Been Active

• What’s the Word on the Street about the Company’s Product on Blogs and Websites

Search for information with the state attorney general’s office for complaints about any company you are considering even though a lack of complaints doesn’t always guarantee that a company is legitimate.

Evaluate the Plan:

Never sign a contract or pay for anything at an “opportunity meeting”. Consider your options take time think about your decision remember real money is involved in your investment, so don’t rush into it without doing some research first. Don’t feel pressured!

Go to the person that is sponsoring you in that network marketing business and ask about the terms and conditions of the plan, which include:

1. Future Costs

2. How the Compensation Is Structured

3. Evidence for the Statements about How Much Money You Can Make

4. Precise Name and Contact Information of Company Representatives Able to Answer All Your Questions

Make sure you get everything in writing. Never join any program where the reward for recruiting new people is more than that for selling the product. The latter is a tip off to a pyramid scheme! Not a true network marketing company.

Always remember that when you recruit new distributors to your marketing organization, you are responsible for the claims you make about how much money they can earn. Always be realistic and honest. Because of your promises fall through, you will be held liable. This is the case even if you are repeating claims you read in a company brochure or heard them from another distributor.

If something is unclear, always ask for more information until it is crystal clear to you. The network marketing information from your sponsor and other distributors in the organization should answer all of your questions. Your sponsor and others above your sponsor’s level make money if you join the program. So it’s imperative that you take your time resist the pressure to join. Never rely on hearsay references about payments from the company or distributors that pretend they were successfully earning money through the network marketing plan.

Research Refund Policies:

Make sure any refund policy is in writing, includes information about returning unused products, restrictions and penalties. You might think you’re minimizing your risk if you can return a product but some policies differ on whether you’ll get a full refund and how long it might take. Some network marketing companies require that you buy network marketing information on training or marketing materials possibly asking you to pay for seminars in order to get discounts or to create your own network distributors. Ask other distributors how much time and money they have spent on their training, network marketing materials, and seminars on network marketing information when they joined. Ask whether you are required to participate in periodic training programs and what happens if you decide not to.

Have a Close Friend or Legal Advisor Review the Network Materials:

It would be very beneficial to consult with an accountant, a lawyer, or someone else you trust who is not affiliated with the marketing plan and review the terms and compensation. Ask them to determine whether the claims backup the information in the marketing company and the amount of money you can make, then scrutinize the information you receive.

Consider If This Is the Kind of Work That Suits Your Talents and Goals:

Think about would you enjoy selling products to the public face to face. Consider how many hours others like your sponsor and other distributors spend after they joined and how much time they spend now. It’s important to think about no matter how good the product is and how solid the plan you need to invest sweat equity and money for your network marketing to pay off. Always evaluate the demands of the business like training, recruiting new distributors, managing the paperwork, tracking inventory, and the shipping process.

Don’t Be Shy:

Question your sponsor and other distributors, dig for details. Never consider it intrusive or nosy! Remember you’re on a mission to check out the potential business that will require your money and your time.

The information they give you will help you determine false claims about the amount of money you make and whether the business is a pyramid scheme or not.

Important Questions That You Need to Ask:

• What will be your annual sales of the product?

• How much of the product you need to sell to distributors?

• What’s the percentage of sales to distributors?

• Last year what was your expenses, and money you spent on training and buying the products?

• What was your income last year including bonuses minus your expenses?

• How many hours did you dedicate to the business last year?

• How many people have you recruited?

• And what percentage of your earnings came from recruiting other distributors and what percentage came from selling inventory?

It’s extremely important to have a complete picture of how the network marketing plan works. You need to know how much money distributors make, how much time and money they spend on the plan, and how long it takes before you break even and start making money you need to know how big of a down line do I need to make money. A clear sign of a pyramid scheme is distributors selling more product to other distributors than to the public or if they make money from recruiting and not from selling!

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