Getting Started with MLM
“If you need to invest $150, you should get something reasonable in return, whether it’s samples, catalogs or training materials,� she said.“If you have to pay $4,000 just for the right to recruit other salespeople, that’s a huge red flag.�
Also, make sure there’s an actual product that’s being sold to the ultimate consumer of that product.
“You should be compensated primarily on what you sell or what your recruits sell,� she said. If compensation is based only on how many people you bring into the business, that’s another red flag.
Ask about the company’s buy-back policy for unused merchandise. The association requires its members to repurchase at least 90 percent of unused inventory.
Finally, be realistic about the earning potential in direct sales — and the work required.
The median income in direct sales is about $2,500 a year.
“Most people in direct sales only work a few hours a week, with a goal of making a couple of hundred dollars a month, so that’s not surprising,� Robinson said.
Those who work full time average about $44,000 a year.
“Direct sales can be a great opportunity, but you need to do your homework and you need to trust your gut,� she said.
via the MLM Business Opportunities Weblog.
Arpita Barua on March 20th, 2009 7:55 pm
Thank you for focusing on some important issues about MLM. I think your suggestions are really helpful for start-ups. Actually, for the last couple of days I have been browsing the internet and trying to gather more information about MLM. I found a website named “www.helpwithdirectmarketing.com”. This site says, “The best opportunities in multi-level-marketing arise when you join a company that has your interests at heart, has a good product and spends the time and effort to train you accordingly, all to ensure your success.” What is your opinion about this?
Nahina on June 25th, 2009 1:56 am
Thanks for sharing your views. It will help me to start my own business. I also received some great help from a free MLM training site. It is very beneficial, especially for beginners like myself. If anyone is interested can check this: http://www.how-to-do-network-marketing.com/Free-Network-Marketing-Training.html
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