Did you know that 90% of home businesses fail in the first two years, not only forcing its owners to not only abandon the business but also leaving them with significant debts and losses? In fact, very few are actually profitable. Please consider the following points before you choose a home-based business or multi-level marketing (MLM) program.
#1 Is the company real: The first step, oddly enough, is to be sure the company is real. Do a Google search. What kind of results are showing up? Are there a lot of complaints that accuse them of being fraudulent or not profitable? Check out their official website. Do they provide contact information? Do they provide financials? Product details? Finding out answers to these questions is the first step. Check the Better Business Bureau and Chamber of Commerce websites, too.
#2 Is the company sound: So, the MLM you are looking for is genuine. Is it financially sound? Check out the financials of the MLM you are planning to work with. Who are the top investors? Who is the CEO and how long have they been in business? Are you able get in touch with people who have done business with them? Find out if the MLM is prompt with payment. Check the company’s growth over the last couple of years. Think of this as an investment. You wouldn’t buy a mutual fund without researching performance. Adopt the same approach when selecting your MLM company and starting your home business.
#3 Value addition: The next step is to examine what they offer. Home-based MLM businesses function on the network marketing model which depends heavily on relationships. Your friends, family, and acquaintances will most likely be your first customers. You will obviously want to provide them with something that will be of value to them. You want a good product or service…something you can sell with your name behind it.
#4 Support: How supportive is the company that you plan to sign-up with? Often people sign up to start the MLM business only to find out later that they are stuck with a bunch of products that they cannot sell. Unless you are an especially versatile marketer and salesperson, you will need help selling the products or services. Check if the parent company offers any such support. Ask if they provide any training, conduct seminars, or provide strong support to their MLM agents and home business owners via the telephone, web, or in person.
#5 Brand: How good is the brand that you will be pitching? If the parent company’s brand is not strong enough, you might have a difficult time convincing people of the product’s merits. As an independent, home-based entrepreneur, you are often perceived as being only as good as the brand you are selling. Pick a company with a strong, sound brand presence. This will make it easier to sell.
#6 What tools do they offer: While running your own business from home sounds like a lot of fun, it is also a lot of work. You will be the owner, marketer, and salesperson all rolled into one. Without any formal training in the new line of business, you’re sure to need some help. Check to see if your MLM Company offers any tool to make home business marketing easier. Simple, easy-to-use marketing and sales automation tools, e-mail marketing tools, pre-packaged sales and marketing content, ready-to-use presentations and personal websites are some examples of what a good MLM company typically offers its team.
So before that jazzy video or promises of profits convince you to you sign with an MLM and start your home business, check the items mentioned in the list above, because for a first-time home-based business owner, failure can be devastating—mentally as well as financially.
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