In the Philippines, there’s a popular business phrase that everybody has heard of. Just as when you hear “Open-minded ka ba?” (Are you open minded?), for sure you’ll know it’s pertaining to an invitation of joining a networking business.
Also known as Multi-Level Marketing (MLM), it’s a form of legitimate business where a member can become rich in the fastest and best way. By joining in the circle of the one who invited you, your own success of the business depends on the effort you bring in. Usually there are many ways a company will show you of earning great but the two main ways are selling the products of the networking firm or recruiting someone to be in your team.
There are lots of MLM companies that has already been registered in the Securities and Exchange Commission (SEC). Hundreds to thousands of people has invested in each company but out of the number, **70% of them will continue for the next two years. It will trim down to 50% of those who will stay in the business within five years but beyond that time frame, only 10% survive.
In terms of earning a modest profit, **only five members will achieve success.
I tried joining one networking company when I was in college but honestly, I failed miserably. And I’m not the only one.
A handful of friends experienced the same so we admitted it’s also our fault but can we blame the whole thing to ourselves? There may be something wrong with us upon entering such kind of business but it took me few years to realize one of the factors that can lead one to MLM failure is not choosing the right, credible and worth-joining network marketing company.
If you’re planning to join a networking company, you have to think twice first and assess if they possess the following ten characteristics.
Since you have put a no-joke investment to the firm, it is expected that they should provide you a good rule of earning your profits through selling and recruiting. One way is to look at the discount privileges of the products you buy once you become a member. A good rule is to have at least 20% membership discount on all products plus earned points for every product sold. The points you earn should be translated into cash incentives and should be treated as a bonus on your effort as an active member. If the company doesn’t offer discount and will mainly have to rely on earning your points alone, leave and search for other companies.
In other words, the company should never force you to sell what they want you to sell. It’s still your choice to decide which product fits in to your desire. Networking companies offer packages that contains the products you’ll sell but you must not dwell in a company whose packages contain the same products that you don’t want to sell. I was once invited by a friend to join in their company and he gave me a brochure that lists their packages. In case I’ll become a member, I don’t want to sell whitening soaps so I have to find a package that contains less whitening soap products. To my dismay, packages A-E are not different. Each package contain 25 whitening soap products and the difference are the products conjoined with the beauty soaps. Package A has 25 whitening products with 5 boxes of herbal supplements. Package B has still 25 whitening products but with 3 boxes of toothpaste and so on. The point is, the company is forcing me to sell more of the beauty product rather than the product of my choice.
This is a rule of applying the phrase, “customers are right” (I did not put “always” because it’s not the case. Only that almost all customers are always right. Hehe). Networking companies should give value not only to their members but to their customers as well. If they have complaints about the products, the company should have a policy of accepting returned products and if possible, replace it with a new one or return their money. Distributors should not always be the one to adjust for every customer complaint. Remember, you have entrusted your investment to the company so it should not always be the case.
There’s a good company I know whose members are earning five to six figures monthly. Their products are of high quality that gives attraction to their customers. That’s why even if their investment capital is costly, many people would still want to join. However, once you will become a member, your up line will never tell you upon recruitment that there is a suspension of your account if you fail to reach their quota on your first months. That is why you will be pressured and forced to sell. That is one good strategy to help you earn and develop your sales skills but come on! Suspending an account is very heart-breaking. Remember, you’ve invested your money in it. There are other acceptable rules that will force you to sell for your own good but suspending an account is heavy on my part.
In terms of recruiting people to be part of your team, the company should not be bothered if in case you don’t want to recruit. Networking companies were established solely for the purpose of selling. Recruiting is just another benefit. Don’t join if the company is orienting you more of recruitment rather than selling of their products. More so if the company doesn’t have any product to sell. That is already a scam as you would only focus on recruiting people.
There’s another network marketing company I know whose products are so cheap and so goes with the investment. They offer different products and they manufacture at least 3-4 every quarter. It is cheap but there are lots of missing points with their products. The company had focused more on quantity rather than quality.
Almost all network marketing companies are health and beauty oriented so before taking the plunge, make sure to research and read about Halal certification or approved therapeutic claims. Study also on BFAD-approved products as well as the components of the products the company is selling. In that way, you’ll know how to assess a quality product and how it will become effective for your customers.
Joining a network marketing company is considered an investment. It’s one of the fastest investment instrument that can give you higher returns. At the same time, it’s also a form of business that can give you higher chances to succeed as compared to other types of business. All you need to have are the guts and passion to focus on the company you’ve chosen. But you also need to choose the right and one of the best companies. The five characteristics are necessary to help you achieve your way towards financial freedom. Good luck on your sales.
**Taken from Entrepreneur Philippines
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