Right Network Marketing Business Opportunities
If you want to make extra money working at home, and are considering network marketing business opportunities, here are some things to consider before joining.
1.
How long has the company been in business? Every year many new network marketing businesses get started, but the majority of them don't last more than a year or two.
This isn't to say you shouldn't join a new company, because it does depend on some other factors which I will get into here, but you do want to be cautious with one that hasn't been in business at least a couple of years.
2.
Who are the founders of the company? This information should be readily available on the company website.
Do they have a proven track record of success? What is their background? This is very important, because the more experience and qualifications someone has to run a network marketing company, the more likely it is that they will be successful.
3.
What products/services are they marketing? Whatever the company offers should have mass appeal and should probably be something you are passionate about.
Health products are very popular as many people are very health conscious these days.
Other network marketing companies offer household products, or even big ticket items like travel.
4.
Is the company marketing products or recruiting people? All honest network marketing companies pay you a commission on the sale of products/services.
You do not get paid simply for recruiting people into your business.
If you come across any business offering you money just for referring people, this may just a pyramid scheme and not a legitimate business.
5.
Do you get training and support? Another consideration is the training that is offered.
This could be in the form of conference calls that educate you on the company, its products, and how they make money; or in the form of your sponsor and "upline" - people who joined ahead of you - and all of who have a financial interest in your success and who should be available to help you.
6.
Finally, what is the company's compensation plan? This is very important, and something not enough people give consideration to.
Does the company use a matrix or a binary type of compensation? • Matrix plan: You get paid not only for those you bring into the business, but people brought in by others.
In this type of plan, anyone in your matrix (also known as your "downline") is yours forever, as long as you and that person remain active in the business.
• Binary plan: This consists of two income streams, but you don't always get paid for everyone.
There often are other requirements like having a certain amount of volume, or product purchases, on each side.
This can be difficult to do or maintain, and is a more challenging plan to make a good income on, especially if you have not done it before.
Also binaries often have what is known as "breakaways".
This means when someone reaches a certain income level they break away from your "downline", and you don't get paid on any more of their efforts.
The biggest advantage of network marketing business opportunities is residual income.
Many people don't want to spend all the time and effort training someone to be successful, only to lose them (and the residual income from their efforts) eventually.
Therefore, before joining any network marketing company, it is very important to consider the company's age, its founders and officials, its products and/or services, training and support and its method of remuneration.
1.
How long has the company been in business? Every year many new network marketing businesses get started, but the majority of them don't last more than a year or two.
This isn't to say you shouldn't join a new company, because it does depend on some other factors which I will get into here, but you do want to be cautious with one that hasn't been in business at least a couple of years.
2.
Who are the founders of the company? This information should be readily available on the company website.
Do they have a proven track record of success? What is their background? This is very important, because the more experience and qualifications someone has to run a network marketing company, the more likely it is that they will be successful.
3.
What products/services are they marketing? Whatever the company offers should have mass appeal and should probably be something you are passionate about.
Health products are very popular as many people are very health conscious these days.
Other network marketing companies offer household products, or even big ticket items like travel.
4.
Is the company marketing products or recruiting people? All honest network marketing companies pay you a commission on the sale of products/services.
You do not get paid simply for recruiting people into your business.
If you come across any business offering you money just for referring people, this may just a pyramid scheme and not a legitimate business.
5.
Do you get training and support? Another consideration is the training that is offered.
This could be in the form of conference calls that educate you on the company, its products, and how they make money; or in the form of your sponsor and "upline" - people who joined ahead of you - and all of who have a financial interest in your success and who should be available to help you.
6.
Finally, what is the company's compensation plan? This is very important, and something not enough people give consideration to.
Does the company use a matrix or a binary type of compensation? • Matrix plan: You get paid not only for those you bring into the business, but people brought in by others.
In this type of plan, anyone in your matrix (also known as your "downline") is yours forever, as long as you and that person remain active in the business.
• Binary plan: This consists of two income streams, but you don't always get paid for everyone.
There often are other requirements like having a certain amount of volume, or product purchases, on each side.
This can be difficult to do or maintain, and is a more challenging plan to make a good income on, especially if you have not done it before.
Also binaries often have what is known as "breakaways".
This means when someone reaches a certain income level they break away from your "downline", and you don't get paid on any more of their efforts.
The biggest advantage of network marketing business opportunities is residual income.
Many people don't want to spend all the time and effort training someone to be successful, only to lose them (and the residual income from their efforts) eventually.
Therefore, before joining any network marketing company, it is very important to consider the company's age, its founders and officials, its products and/or services, training and support and its method of remuneration.
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