Considering An MLM, Network Marketing or Direct Sales Company?
by Susie Glennan
The Busy Woman's Daily Planner
You just came home from an in home party where your friend was the
hostess so she could earn some free products. You had a wonderful
time, the food was great, the company was stimulating, and the product
was enticing. The hostess did a wonderful job of telling you all
the merits of this business and why you should join. It sounds tempting,
but is this for you? Let's look at the different aspects of "Multi-Level
Marketing," also known as direct sales or network marketing.
When I sold the many different products in the mlm setting, my accountant
would grumble at me that I was barely making $1 an hour after investing
all the time to work the business. I would tell him that I get freebies,
so when I sell those I'll make more money. That rarely happened though
because I initially got into whatever business it was to get my products
for free or at a discount.
He sat down one day and showed me how many hours I was putting into
it and how much I was actually making by the end of the year. Sad
to say it wasn't much. But I did get those things I wanted for free.
Sometimes the ends justified the means. However in some of the businesses
I just took precious time away from my family with no return on my
investment.
Many women get into (MLM) companies to try to earn a little extra
to help pay for groceries, clothing, or goodies not normally afforded
to the family. However, the amount of time it takes and financial
output sometimes does more harm than good. So let’s help you
find the right questions to ask before jumping into a new mlm business
in order to save you time and money. Before we get into suggestions
for do’s and don’ts, let’s answer a few questions…
1. Do you LOVE and USE the products?
Passion is a great sales tool. If you’re going to sell a product, you
need to LOVE it. It’s easier to sell something you love and use. If you
love it, then someone else will love it too. This makes you a living testimony.
If you like it but can take it or leave it, don’t sell it. The passion
won’t be there.
2. How many items does the company sell?
If there are only a few items in the company’s catalog, chances are inventory
won’t be too much of an issue, especially if the company drop ships. However,
if there are many items in the catalog, you need to think about other issues
such as:
a. Does the company drop ship?
If the company drop ships, this COULD take care of any inventory issues you
might have. If they don’t, then you’ll have to start purchasing
shipping materials and learning about different options of shipping.
b. Do you have to carry the inventory so that the product is on hand at all
times?
If you have to carry inventory, related issues become housing, paying for
it, and keeping track of it.
3. Does the company offer business cards and other promotional material
for you at a low rate?
If the company has promotional items for you to purchase and they aren’t
charging you all of your profit from sales to pay for them, you’re fine.
However, IF they charge a lot or don’t have them available at all, the
costs will start to mount as you either print them on your own or hire a professional
printer. Either way, unless you purchase in the thousands of any one item,
the costs are phenomenal. Much of a your profits can be eaten alive purchasing
catalogs, yet alone, business cards, stationary and many other items needed.
4. Are there required minimums you have to maintain?
If there are required minimums, does the company allow for illness (whether
it is you or family) for extended periods of time before requiring that you
start all over again? How about if you fall short one term. Will they make
you purchase a large order to keep in good standing?
5. Can you sell on the Internet?
If Internet sales are allowed, this can be good and bad. It can be good because
you’ll have a much larger market to go after. However, you will have
to learn how to get the word out on the Internet. This is okay when you know
how to get around online. You can even learn web site design so you don’t
have to pay someone else to do it for you. It’s the TIME involved that
can swallow you up.
If you choose a product that does better when seen up close, you’ll
really need to concentrate on your local market for sales. Chances
are that company might not allow online sales or advertising. These
are only suggested issues to consider. They are not set in stone.
Let’s move on…
If you set up a budget for the business, you might be able to make
a little cash as well as freebies. It's only when you start getting
up into the higher levels of the company that you can start to make
an actual salary of sorts.
In order to do this you must stick with it for a long time! If you
love the socializing like I do and you like what you do over all,
it may just be something wonderful. For the three years I sold Discovery
Toys®, it was fun! I could afford all the BEST toys on the market.
I absolutely LOVED getting out of the house. It was a win win situation
for the duration of my time with them. As the children got older
and I had just about every toy DT made, the time to do in home demonstrations
became limited. It was time to move on.
(I enjoyed using and selling The Busy Woman’s Daily Planner
SO much, that I purchased the company! And I STILL enjoy helping
women find just the right product to help in their endeavors to get
organized. You never know what’s around the corner.) (smile)
When I sold other products so I could purchase them at a discount,
it often wasn't worth more than the original investment. BUT, I did
enjoy all the goodies I received with my kits. Those were well worth
it.
So, you've decided to "Go For It!, click
here to read on
Susie Glennan has been happily married since 1982, is mom to 3 teenagers,
and is a Home Maker, Nurturer, Teacher, Author, Professional Speaker,
Toastmaster, President of The Busy Woman, Inc., DBA - The Busy Woman's Daily
Planner®. She teaches time management seminars, offers FREE consultations
with your order, and will help you set up a schedule that's right for you.
800-848-7715 www.thebusywoman.com
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