7 Questions You Have To Ask Before Joining An Mlm

Joining an MLM should not be an emotional decision. Evaluate both company and yourself. You should understand what the company is all about and why you want to do this. If you don't know something about the company and you can't figure out why you want to do this, don't do it.

OK, let's presume you are ready to start looking at MLM companies. Here are 7 questions that must be answered to your satisfaction.

1.It is a pyramid scheme? A Network Marketing company that has no product or service to sell can only make money by signing people up. Pyramid scheme. No question. It can also be said that a company with a very uncomplicated product at a very high price is a pyramid scheme also. Not only is a whole revenue stream missing from these companies, they are illegal. Walk away.

2.How long have they been in business? It is not that a brand, spanking new Network marketing/ MLM company can't be lucrative, but one that has been in business for a while is a safer bet. They are no different than a traditional business in this respect. I would suggest at least 2 years in business, and I actually like 5 years better. They have an even better shot at being on solid financial ground.

3.Is the product or service valuable? Is it something people would want to buy? Would you want to buy it if you were not in the company? If you don't want it, why would anyone else? Is the product or service overpriced? Is it available for a lot less money somewhere else? If the product is a higher price, can it be justified?

4.What are your costs? The upfront cost is where commissions and cash flow come from. Is it too high to afford? Can you join with a lower cost and move up as your revenue increases? What is the monthly cost? This is where residual income comes from.

5.Is there a good Residual Income? This comes from the money distributors and customers pay for products and/or services. Will the products or services support an ongoing residual income or are they a one time shot? As you move up through the company, how soon do you see substantial residual income?

6.Inventory? If the MLM you are looking at sells products, do you have to keep an inventory of products in your home? Must you pay for them all at once? What is the policy about selling inventory?

7.Can your upline teach and train you? You will have to know about the company, its products and/or services, the pricing, how to use your back office, etc. These are the common business aspects of the company. There should be an easy way for you to learn this stuff. How about marketing? Are you going to be an Attraction Marketer? Is your upline OK with that? If not, you need another upline. If your upline is OK with it, develop a good rapport, because that person should be able to teach you some 1 on 1 skills you will need.