The home-based business arena has exploded in recent years. The challenges of 2020 have presented obstacles to almost everyone. Businesses across the nation have been shuttered due to the coronavirus pandemic. According to data released from YELP, 60 percent of business closures because of COVID-19 are now permanent. As of September 2020, over 100,000 restaurants had to close their doors. Many will never open again.
These numbers are staggering and reveal the necessity of having a Plan B. I recently published an article Five Reasons to Have a Side Gig. In this article, I talked about the need to have a secondary source of income. We learned from COVID that having a second or third job may not be enough to overcome the financial hurdles created when our country shut down. If your side gig was driving for Uber, waiting on tables, or running a travel business from your home, your income dried up beginning in March 2020.
More than any other time in our nation’s history, people are receptive to having a home-based business. Online business-building tools like Zoom have made it possible to not only survive in a climate as we had in 2020, but many people saw exponential growth in their online business.
With the economic upheaval in 2020, many people have discovered that direct sales/network marketing is a viable path to profits and prosperity. With so many good options out there, it might be challenging to know where to land. Here are five keys to consider when shopping for an online business.
KEY #1-Leadership Matters
I love this quote by Dr. John Maxwell. “Everything rises and falls on leadership.” That is so true. Before enrolling as a consultant/distributor for a network marketing company, ask about its leaders. If there is one thing I have learned in my journeys, leadership can’t be compartmentalized. The person leading the ship must be above board. Of all the leadership characteristics that I have seen over the years, no element is more essential than virtue. Make sure that the company’s leaders have a track record of character and competence.
Key #2-Products Matter
My first rodeo in direct sales was with a SAS (service as a solution) company. The product we sold was a membership to a travel club. It was a great product, and I loved being apart of that company. I left it in 2018 when I learned that there were some issues with the character, competency, and stewardship of the leaders. When I transitioned to a different company, I discovered the benefits of having tangible products. In my previous business, the only commissionable product we had to offer was the membership. In other words, if you didn’t sell a travel-club membership, you didn’t make a commission. Offering products that people want and need is vital. It’s also crucial that your products compete in the marketplace, separate from the business opportunity.
Key #3-Trends Matter
One lesson we have learned from 2020 is this. Capitalizing on trends in the market is critical to success. When COVID-19 lockdowns became a reality, more and more people became mindful of their health. There’s no doubt that the coronavirus has taken its toll on our nation and our world. It is estimated that by May of 2021, over 500,000 Americans will have died because of COVID. As tragic as that is, and it is sad, Dr. David L. Katz, President of Truth Health Initiative, says that we lose at least 500,000 Americans every year because of choices people make with lifestyle and diet. Let that sink in. If there is one silver lining amid this pandemic, people are more conscious of health and wellness. I believe one of the trends that will explode in 2021 and beyond is lifestyle and nutrition. Being positioned with a company that has a platform set up to capitalize on this trend is vital.
Key #4-Compensation Matters
Years ago, a leader I respect told me not to get too wrapped up in understanding the company’s comp plan. To be fair, I don’t believe this individual was trying to mislead me. I think he believed what he was saying. However, this advice was misguided. People often sign up for an MLM company because they buy into the hype, not knowing how difficult the journey will be to get there. For most people, compensation drives behavior. If I sell something on e-Bay or Amazon, I expect to get paid. Shouldn’t that also be true for network marketing? Many companies set up compensation plans that make it almost impossible for the average person to make money. The holy grail of success in network marketing is retention. Nothing cultivates retention more than putting money in people’s hands immediately.
Key #5-Climate and Culture Matter
Climate and culture will make or break any organization. Most people have an innate desire to be apart of something bigger than themselves. Organizations that work tirelessly to cultivate a positive climate and culture create the most retention. Most people enroll in a network marketing company because they want to make some extra money. They stay in a company because they make meaningful connections. Having a good comp plan is essential, but cultivating relationships will transform your business. A company that creates a climate that inspires and empowers people to buy into the vision is the one that will be positioned for exponential growth in 2021 and beyond.
In conclusion, direct selling will continue to be a smart option. With a global recession going on right now, people are more receptive than ever. As professional network marketers, it’s up to us to reach out and offer a lifeline.
Let me hear from you. Leave me a comment below, and if you received value from this post, please like and share.
You Rock!
Bill
P.S. I recently participated in a training that showed me how to get 9 RED HOT LEADS per day without spending a dime on Facebook ads. Want access to this FREE training? Click the link below to gain access.
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