Prequalifying for Network Marketing:
the 21 Questions You Need to Ask
MLM companies play this little game of your "
prequalifying for Network Marketing ". The little game says that
if you jump through their hoops then they might let you join.
Balderdash.
You shouldn't be prequalifying for
them. THEY should be pre-qualified by you.
Okey dokey. So just what questions do you ask
for prequalifying for network marketing? Try these:
1. Do you honestly understand the compensation
plan?
If not, turn around and walk
away. Now. Do not pass GO. Do not collect
$100.
2. Does the compensation plan involved
commission from more than three levels of sales?
If so, get away from
it. You are not selling product. You are selling down
lines.
3. How much are you required to buy? Do
you buy your own "starter kit"? Do you have to buy a certain
amount of product every month?
Monthly quotas can be
real killers. Be careful.
4. Does your network marketing upline receive
commission from your payment for the "starter kit"?
There should be no commission
for starter kits, only for real product
sales.
5. How much do you pay for the "starter
kit"?
If it is more than the
actual cost of the kit, plus shipping, watch
out.
6. Do you have to purchase a minimum amount
at full cost each month?
Companies should not be
allowed to set these minimums, nor pay your upline commissions on
these minimums.
7. Is there a way to join the company without
making a purchase?
There should
be.
8. Is the network marketing product priced
higher than the market price for similar competing products which are
not sold via network marketing?
Then why would anybody
buy it at all, except that your upline (and you) are getting
commissions.
9. Can you purchase product for resale in
small quantities, or are you forced to buy cases at a time?
Why buy huge
amounts? Is this the only way the company can move its
product?
10. Are you asked to purchase large amounts
of product prior to having orders for the products from customers not
participating in the network marketing company?
If so, don't. This
is one of the big ways of prequalifying for network marketing.
The more product you are required to buy, the less likely it is that
the company is a good one.
11. If you cannot sell product, will the
company buy it back from you?
If they won't, don't buy
it.
12. Is the company's "network marketing
opportunity" being more prominently promoted than the company's
product?
This is the common
denominator of lousy companies. If they haven't got a great
product, you don't want them.
13. Do the network marketing company's products
seem relatively irrelevant compared to the company's "network marketing
opportunity"?
How were you
approached? As a purchaser, or as a sales person. That's
how they expect you to approach others.
| If all you are
selling is "opportunity", that "opportunity" isn't
there. |
14. Do you actually use the products?
If not, why not? If
you can't prequalify for network marketing on this issue, this isn't
your company, even if it is otherwise a good
company.
15. Is the company training you on how to sell the
product or on how to build your down line?
Actually, if they really
train you to do anything, you should be grateful. The
overwhelming number of "training" programs are totally
worthless.
16. Are the network marketing company's previously
recruited participants left to go it alone after their initial
recruitment and purchases?
There should always be
someone you can contact for questions and assistance. Don't depend on
your "upline" -- it can go away at any time.
17. Can you determine who is buying product in your
down line? What are the reports really like?
You should be able to see
names and amounts, and know who these people
are.
18. Can you determine who has joined your
down line? And who has left?
With 2 or 3 levels of
downline, you can track your commission. With more than that, or
with no reporting mechanism in place, it is impossible to track.
It's like giving your commission away. If you can't prove that
you've earned it, you won't get it. This is one the real
essential steps for prequalifying for network
marketing.
19 How will you make the most money: by
selling product, or by getting others to join the down line?
If it's through your down
line, forget it. With my companies, about 90% of my earning
(which are substantial) come from my own sales. Only 10% comes
from my downline. Translate those figures into the company you
are looking at.
20. Regardless of what all the paperwork says, do
people working with the company promote the product, or do they promote
the "wonderful sales opportunity"?
Get a reality check
before proceeding.
21. How valid are the income figures the company
provides to you? Who compiled the figures? Who audited
them? Can you keep records of your own downline sales and product
commissions?
If not, walk
away.
Prequalifying for network marketing is not always
easy. These are not questions you will hear in the "breakfast
meetings" your sponsor drags you to. But if you are serious about
having a profitable business, spend all the time you need prequalifying
for network marketing. It will be time that will pay you back
again and again and again.
