Are you considering Network Marketing or MLM as a revenue generation tool?

Well… be prepared to hear extreme viewpoints about it!  Some people are going to be passionate about the concept – to the exclusion of every other possible business model.  In this group you will see the likes of top celebrities such as Robert Allen, Donald Trump and Robert Kiyosaki who are great advocates.  On the other side of the spectrum you will find people who will be more than happy to make you feel diseased in some manner because you have made such a choice.

Are you considering Network Marketing or MLM as a revenue generation tool?

Well… be prepared to hear extreme viewpoints about it!  Some people are going to be passionate about the concept – to the exclusion of every other possible business model.  In this group you will see the likes of top celebrities such as Robert Allen, Donald Trump and Robert Kiyosaki who are great advocates.  On the other side of the spectrum you will find people who will be more

What issues can you expect to consider?

Many people turn up their noses when you discuss a tiered compensation structure, but they fail to consider that virtually every large sales organization in the world is designed so that their sales people are paid commissions and their managers get overrides or bonuses on those commissions – as do their sales directors and VPs!  And at the top… that revenue generation has always been intentioned to flow upward to corporate presidents, stockholders and mega-business owners.

Other people dislike the fact that they have to pay to participate in the program. These same people, however, would have no qualms about buying into a standard franchise – if they could afford the exorbitant fees.  The cost of a franchise depends on the franchisor and industry, as well as a myriad of other factors. Some of these factors include the size and location of the franchise. The fees you can expect to pay can be in the range of $25,000 to in excess of $6 million.  In today’s market very few of those who have found themselves scrambling to generate additional revenue can even afford that level of cash outlay.  The upside of Network Marketing is that the entry level is low cost with the potential for exceptional revenue, which has been proven by those who treat their business as a business and achieve that potential.

Is there an uphill battle with the negative image of pyramids and schemes?

The negative image of illegal pyramids and Ponzi schemes deliver a general perception that is not in alignment with reality.  Over the course of time, many people have purchased and sold products which have benefited the lives of many. – leading me to believe that the problem is not with the business model itself, but with the type of people it attracts.  However, if we look at the white collar crime in large corporations, might we not say the same thing?  Your personal belief in your product, service, company and your own business skills are the bigger considerations…

What roadblocks might a person new to Network Marketing – or engaging in any entrepreneurial endeavor experience?

It doesn’t matter what business model you choose, if you are not qualified or prepared to become a business owner, you are open to risk.  It is essential to assess the degree to which you:

• Know and understand your business or profession – or are willing to learn.
• Have some money saved to invest in a new business – or are willing to make a temporary sacrifice for a long-term gain.
• Have some previous experience in sales – or are prepared to be trained.
• Understand the value of your product or service and how that fits in your overall revenue generation plan.
• Have realistic expectations of the amount of time, resources and effort involved in generating the revenue you desire.

When these things are not addressed openly and honestly before engaging in any business opportunity the outcome will be less than favorable.  In the realm of Network Marketing or MLM, the unrealistic expectations and the disappointing results tend to drive people to making bad business choices, with the result being another bad mark on the name of Network Marketing.  The “story” becomes a self-perpetuating one wherein the business model becomes the scapegoat for the lack of activity or poor choices in running a business from a place of integrity… leaving yet another blemish on the face of an otherwise sound business model.

You are a business owner – act like it!

Whether you opt for starting your business from the ground up, buy into a franchise, or step into a ready-made business model with a popular Network Marketing or MLM company – the first course of business is to accept the reality that as a business owner your primary responsibility is to manage that business! If you’ve never owned a business before, if you’ve never engaged in sales before, if you’ve never “networked” before… you have to prepare and educate yourself for all of those processes.  You must be reading and learning everything you can get your hands on about business basics, the latest in ever-changing sales and marketing techniques, and strategies for business development and/or networking.  When you act like a business owner… others will recognize it and will treat you accordingly.

I trust this missive will have touched you in some way, if you are trying to make a decision about whether to take advantage of the increasing opportunities in Network Marketing.  If you are doing your due diligence, you will find Network Marketing companies that are thriving and debt-free in an economy where other large companies are falling apart – from the inside out.  If you liked this article, feel free to pass it on to others and make sure to check back for more tidbits of wisdom from the Entrepreneur’s Strategy Coach.

Action Point

If you are considering Network Marketing you have either been approached by someone who considers you a likely “business partner” or you are at a forced career transition point.  I would encourage you to find some quiet time and make a serious assessment of where you are and how quickly you want to be at a different place and point in your life.

• Write down some of your dreams and fears – and address both with equal passion.
• Complete due diligence on the stability of the company you are considering and know the quality of the people with whom you will be aligning yourself as you “grow” into a new business model.
• Assess the quality of the education provided by the company – if it is only foundational or contains a lot of fluff – - take on the responsibility of seeking what you need elsewhere.
• Don’t forsake the right product for a lack of educational support you can secure on your own.

Contributing Author:

4-Dimensional Success