Monday, March 24, 2008

Evaluating Multi-Level Marketing (MLM) and Network Marketing Opportunities

I literally get three or four offers per week for multi-level marketing opportunities, the Web is abuzz with people who realize that social networking could be the best opportunity in network marketing history.

Here are the ways I evaluate network marketing opportunities... I encourage you to do the same.
--Does the company sell a real products with significant value? Is the product more expensive because of the network marketing engine? Is the product truly unique?

--Can you be successful with the company selling product exclusively, or are you required to recruit a downline for significant income? Companies such as Avon, Mary Kay cosmetics, Pampered Chef and others rely on selling product and not on recruitment.

--Do you have to inventory a significant amount? If you need to inventory product for resale to be successful, you need to be able to mark up the product a minimum of 50%. Many legitimate companies will take catalog orders or drop ship to your customers. If the company is encouraging you to buy items for resale, they may rely heavily on product purchased by sellers rather than by end-users.

--Does the product have a brand name that people recognize for the product, or the opportunity? When you hear the word Tupperware, you think of plastic dishes not the business. Conversely, when you use the year the term Amway, people associated it with a home-based business not a particular product.
When I do consider an opportunity I look for two final determining factors.
--Can the person above me mentor me? Does he/she have the experience to teach me how to sell more product? If they don't, then I'm paying them for a portion of my sales for doing nothing.

--Will I be able to mentor the people below me? If not, I'm earning money for nothing. That business model never lasts!
There are legitimate multi-level marketing opportunities, but there are more companies that exist on hype than on sound business fundamentals.

Last year my websites sold $600,000 worth of product and services and my personal income was over $70,000. I signed a strategic alliance in February that should boost my overall revenue to $1 million, and my personal salary well into six figures.

So far, I've done all of this with no MLM. I'm not opposed to them, I just haven't found any that are a good fit for me.

Being physically disabled, it's not realistic for me to do home parties. Many of the best multi-level marketing companies focus on the home party as their primary method of sale.

If you would like personal assistance evaluating your multilevel marketing opportunity, feel free to give me a call or drop me an e-mail. I can be reached in my office at 215-253-3737. My e-mail address is available in the footer of this blog.
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