The Most
Important Network Marketing Tip You Will Ever Receive
The most important network marketing tip you get
probably won't come from friends or associates. They are all
well-meaning. They are mostly wrong.
The most important network marketing tip you’ll
ever receive is:
| Carefully read the terms and conditions of
any network marketing program, particularly related to earnings.
|
This sounds easy, but it's not. So many
people get caught up in the hype of potential earnings that they totally
lose track of basic business essentials. One of the very basic
business essentials is: Read the contract. This is
particularly important in Network Marketing and MLM
businesses.
The "Falling Off the Cliff"
Clause
Many people are unaware that if they don’t
personally meet certain sales targets every month they won’t be paid
commission on any of the sales their down-line has made.
Nothing. Nada. Zilch. Zero.
For some companies this simply means you have to
make sales every month as well as the required personal purchases of
products. For others the requirement is to meet a specific sales
target or sponsoring new people.
One dollar less than what is required, and you've
fallen off the cliff.
I
wasn't kidding about this being an important Network Marketing
tip. A very important one. This is something you need to be
very clear about before you sign up and invest a lot of your time in
building a down-line. The time it takes to train and develop a down-line
is valuable. It is important that you are compensated for it
irrespective of whether or not you personally make sales in a single
month.
Other Common Contract
Qualifiers
Some even more stringent rules require that you
meet set sales and purchasing targets to qualify to earn income on your
own monthly sales. For example, if your quota is $2,000 in sales
in month, and you make only $1,900 then you NO COMMISSION AT ALL.
Not from your sales, and not from your downline sales.
These guidelines are entirely to the benefit of the
network marketing companies and are to the disadvantage their
distributors. Such rules make it difficult to profit from network
marketing. It is therefore important to take note of this network
marketing tip and avoid companies that disadvantage their
distributors.
"Stair Step Breakaway
Compensation Plans"
These payment restrictions are known as “stair step
breakaway compensation plans.” Different companies will use different
versions of the same basic idea. Some companies specifically require
that you sponsor a manager in your down-line in order to earn income
from it. Others only pay compensation to a specified level in the
down-line while others require a minimum total sales figure in the
down-line before they will pay you compensation.
Unfortunately, some network marketing companies
actually combine a number of these requirements making it very hard for
their distributors to succeed.
The best network marketing tip you will ever
receive is to avoid such companies like the plague.
Unfortunately, this network marketing tip is rarely
mentioned and consequently many new network marketers receive a rude
shock when their check is stolen from them unexpectedly. (And,
YES! I do consider this STEALING!)
While network marketing companies include this
payment rule to pressure their distributors to continually work for the
benefit of the company (because it is in their own best interest to do
so), it can and does backfire badly on them. The attrition rate among
new network marketers is very high and these sorts of financial losses
figure high on the list of reasons.
So here's this network marketing tip: Evaluate the
network marketing opportunities you may be considering based on the most
beneficial terms for members.
Avoid signing up with network marketing companies
that limit your capacity to earn from your down-line based on your own
production. The primary incentive for building a down-line is the
promise of earning residual income from their sales. This should not be
conditional upon your personal earnings for a given month. If you become
ill and cannot work or wish to take a vacation, you need to know that
your down-line is still benefiting you.
If you ignore this network marketing tip and sign
up to a program that will penalize you if you don’t meet personal
monthly sales targets, sponsor new people in a given month, sponsor a
manager or run training programs for your down-line during that month,
you may find yourself unable to even take a vacation without taking a
massive income hit.
No Vacation, No Retirement, No
Nothing
These types of compensation plans mean that you
cannot retire on network marketing earnings. For many people, the
promise of creating a residual retirement income is why they are
interested in a network marketing business in the first place. It is
therefore very important to choose a network marketing opportunity
wisely.
Can They Boot You Out the
Door?
The compensation plan should not be your only
concern when reading the contract. Be aware that if the company can
cancel your distributorship with or without a reason, your business can
disappear in a month. Even if the compensation plan allows you to
continue receiving income from distributors after you retire from
selling yourself, a company that has the ability to terminate your
distributorship on a whim can effectively steal that income.
Relying on a company that has this clause in its
agreement means you are relying on integrity that may not exist. It is
very important to limit your risk of losing your business by taking note
of this important marketing tip and choose your company and opportunity
very wisely.
However, if we don’t act on good, reliable
information all we’ve done is waste our time. Don’t ignore this network
marketing tip. Read contracts carefully before signing up and make sure
you are not disadvantaged by a network marketing company’s payment
criteria. Their goal is to maximize their profits. Your goal needs to be
to maximize yours.
Cover Your
Backside
The easiest way -- and the best way -- to
make sure you are not going to lose the business you have built is to
have multiple streams of income and not to be dependent on any one
Network Marketing MLM business opportunity. After all, no matter how
careful you are in evaluating a network marketing business, things can
go wrong. Having your eggs in more than one basket just makes
sense.
