Friday, August 12, 2016

Am I Able To Make Cash with an MLM Home Based Business?

A question from a subscriber prompted today's blog post.  Am I REALLY able to make money with a network marketing home based business?  YES!

Each day legions of people decide to start their own home based MLM businesses.

It costs very little to start up, there is not much risk involved, and the business model has been proven to work - and work well.

What You Need to Know about Beginning an MLM Business from Home

If you would like to know the hard facts about MLM, there are lots of points to consider.

If a sponsor tells you that you will get rich quick, this isn't true. You will have to work really hard at the beginning to build your business. True, a successful sponsor who has been in the business for many years might have forgotten all the hours of labor involved when starting. But I promise you, if they are successful, they did the work.  You must be prepared to do so also.

There are only roughly thirty MLM companies which have been around for more time than about ten years. There's definitely not much wrong with the business model as these thirty or so companies have proved. The ones that failed either didn't set up their businesses correctly in the beginning or were using questionable business practices.

The ones that failed did so for two main reasons. The major reason for failing is the quality or desirability of the product, and the second reason is usually that the compensation plan did not work.

MLM Home Based Business Due Diligence

Prior to starting any MLM home based business you must inspect the company's compensation plan rigorously. Understand it completely and raise questions. Understand the system that they use. Many compensation plans have names like matrix and binary, so be certain that you understand exactly what these terms mean.

Inspect the product. Raise questions and investigate whether it is well publicized, and ask yourself if it is something that is of high quality and not something that may be bought less expensive from a local store. Also, what is the likelihood or recurring orders?  Is the product a consumable that will be reordered regularly?  Will people wish to buy the product in 10 years time? If they do not, then the product and your business will both vanish. Is the product line constantly being updated with new products to keep current with market demand?   

If you have a company to mind, get on forums and find other people to chat to who work for that company.

You'll have to look out for people who've failed though. The attrition rate is particularly high in any MLM business, usually because people think they are going to earn money from the first day, or they don't put in any effort.  When these people fail, they can become very vocal about claiming the company or the business model itself is a scam. Rather than admit their own failure to do the work necessary, they have a tendency to look for something or someone to blame.   

What It All Comes Down To

If you would like a successful home-based MLM business you will have to work diligently, find out about your product and company and commit lots of time to your business. It's very important that you find out everything about the business before investing your precious money and valuable time into it.

It's also necessary that you've a business plan, which should ideally include a sales and marketing plan, one for the product and one marketing your opportunity even before you sign that check. There are two ways to earn money in MLM. One is to sell product. The other is to sign up others to do exactly the same as you.

If you don't have a plan, you will never make it happen.

Essentially lead generation is going to be the most time-consuming part of your MLM business. Are you capable of building a domain and do you understand internet based marketing? Do you know how to push traffic to your website?

How are you going to advertise? Will you take part in a company or a team financed advertising cooperative? How much are you willing to invest in your business? How much time are you prepared to provide your downline team in the way of coaching and advice?    

All these questions must be addressed during your due diligence and done long before you sign on the dotted line. This preliminary investigation and fact finding will be the most significant difference between owning a successful MLM home business or one of the many that fails within a few months.

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