5 Common Questions to Ask Your Network Marketing Consultants
Before you get started with the multi-level marketing or network marketing, it is good to connect with an expert to get answers to all your queries. It is essential because not all MLM businesses are good or legit opportunities. Indeed, the scalability, flexibility, and potential for passive or residual income are what attract people to this business but so many scams or fraud companies are also there who are only available just to take advantage. When the benefits are countless, the risk factor is also there. Hence, you need to understand what you are getting yourself into. And for this, you can consult with a professional network marketing consultant to devote your energy, time, and money in the right direction.
So, look at the following common yet essential questions you should ask the MLM consultant before getting into it:
What is MLM?
It may sound quite obvious but it is an important question to ask. So, understand this with the following – it is a business model where products and services are sold by the distributors for which they earn money as commissions. These distributors may also get compensation for the sales of recruited sales teams. This model is also referred to as network or sales marketing.
How does one get paid in MLM?
The basic premise of the MLM industry is this – the sales distributors are compensated in 2 different ways:
Based on their own sales of the products or services to customers
Based on the sales of their recruited teams
However, the particulars may vary generally among different MLM organizations. This is the point wherein you want to do your ‘due diligence’. If a compensation plan does not look fair (the chances are higher the early adopters are earning money) or you are having a difficult time understanding the same (as it is super convoluted), this may be a huge reason for the pause or even failure.
Is it similar to the pyramid scheme?
The answer to this question will help you understand this business better. A pyramid scheme is an illegal business model that only recruits members and promises (fake) payments based on enrolling more members. The point to understand here is that if you join such schemes, then you will only make money based on the members you add. There is no valid service or product to sell. MLM businesses, on the other hand, have products and services to sell and make a profit. However, some MLMs can be a disguised illegal ‘pyramid’ scheme. Hence, you should do some research and ask questions such as:
Is there any product or service that customers can ask for?
What % of the sales are meant for the customers?
Do I need to buy a lot of inventories to make money?
A good network marketing consultant can help you find the answers to these questions so that you can join a legitimate network marketing company to ensure better returns.
Are MLM products of low-quality or inferior?
Well! This is quite a tough question to answer. It is because every company and its products/services are different. However, you can research your end to learn more about the products/services. For this, you can read reviews, consider customer satisfaction, and other factors to identify whether the product is good or not. A good MLM company will always stand behind their products and have a generous return policy along with a low return rate.
How much time should I invest in my MLM business?
Well! You will do well if you treat it as a business or job not like a pastime activity. In addition to this, you should be ready to put in the consistent efforts to run and grow your network to reach the newer heights. One of the most professional and experienced network marketing consultants can help you plan better for your MLM venture so that you can succeed.
Undeniably, you will need a lot of patience to set up and run your network marketing business if you want to go far. It is because many MLM businesses fail in the initial 2-3 years and the reason for this is that they started setting ‘unrealistic’ goals. So, be patient and confident with your venture and success will surely come to you.