It is no secret that many people have a negative perception of the network marketing profession. The general population lacks useful information about direct sales. Instead, they rely on their own independent research, which is almost worthless. The cold hard truth is that even reasonably intelligent people are not very knowledgeable about deciphering information on the Internet.
Another issue plaguing the industry of network marketing is a lack of integrity among a small minority. Unfortunately, bad players can make it hard for men and women who are trying to do business responsibly and ethically. When direct sales companies make the news, it’s most often because they have gotten in trouble.
Network marketing companies will find themselves in hot water with regulators if their independent representatives make unsubstantiated product claims. The other issue is when overzealous home business owners try to recruit people into their opportunity by making false or misleading income claims. This type of recruiting makes a legitimate industry look scammy, untrustworthy, and illegal.
The Gig Economy
I am not a financial advisor, nor am I an expert in tax law. But in today’s gig economy, having a home-based business can provide individuals and families with a secondary source of income. Tax advisor Courtney Epps has written a book entitled More Relaxing, Less Taxing. In her book, she writes about the two tax systems that exist in our country. There is one for the employee and one for the self-employed. The employee system is designed to take our wealth. The other system for the self-employed is intended to empower people to create wealth. Most self-employed people unknowingly overpay in taxes by $10,000 each year even though they have a good accountant.
Direct sales is a viable business opportunity for those who are willing to do what needs to be done to actively sell products or services in the market place. The advantages of network marketing are hard to beat, especially for people who want to work flexible hours. From a cost perspective, the barrier to entry is relatively low.
Many people across our nation and throughout the world have enjoyed the benefits of a thriving home-based business. Except for a small percentage of uninformed naysayers and a handful of online bloggers who have figured out how to monetize the bashing of network marketing, it’s hard to find any credible information that impugns the merits of a good direct sales company.
Three Questions to Consider
So, if you have a viable prospect for both your products and your business venture, what are some questions they might be asking you about your opportunity. Let’s dive in.
1) Does your company offer products and services that people want or need?
Now more than ever, network marketing is coming under heavy scrutiny from regulators. The future of direct sales depends on companies being able to provide real value that can compete in the market place, and this must be separated from the income opportunity. If your company offers high-quality products at a competitive price, then your business platform has passed the first litmus test.
2) Does your company’s compensation allow an individual to earn an income even if he/she isn’t a high-level recruiter?
Too often, professional networkers will focus on the potential of helping someone make six to seven figures. More times than not, a majority of prospects have much smaller goals initially. Most would like to get their investment back and get some products paid for through the compensation. Others may just want to earn an extra $300 to $500 per month. That amount could help with a car payment or help fund regular vacations. In the Great Recession that began in 2008, the vast majority of home foreclosures could have been avoided with an extra $300.
It’s essential to know how your company compensates you? There are too many companies in our industry whose qualification requirements make it almost impossible for a person to break even. In almost every sales profession, if a person makes a sale, he/she gets paid. Why do so many network marketing companies have strict qualification requirements? That’s a conversation that is better had in person, but the bottom line is this. If your company doesn’t pay you for every sale, you will have a difficult time building a large organization. When your compensation plan allows a more significant number of people to succeed, that’s the next litmus test.
3) Can your company’s executive team pass the third litmus test of integrity and transparency?
Make no mistake. Naysayers will always exist, and not everyone is going to say yes to your business venture. However, your viable prospects will want to know all about your company’s leaders, their vision for the company, and their track record of success. Too often in direct sales, we see company owners and leaders bounce from one venture to another. This does not inspire confidence in a prospect who is looking for a permanent home in network marketing. If your company’s leadership team are men and women of integrity, you have a much higher opportunity to attract great people.
As I conclude, let me leave you with this one thought. Too many well-meaning distributors think, “Everybody needs my product/opportunity.”
Not everyone is a business builder, so it’s essential to establish a strong customer base. Regulators are keeping an eye on companies that don’t offer real value. If your company’s products/services don’t stand on their own merits (separate from the business opportunity), your network will crumble.
The key to long term success is finding a company that offers a product selection that you would be proud to share with your network of friends, family members, and warm-market contacts.
Do these questions and comments resonate with you?
If so, leave me a comment below as I would love to know. Also, if you got value, spread it around and share it with your fellow networkers.
Live Well, Leave a Legacy!
Bill
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