Sunday, December 30, 2012

Choosing the Best MLM Business Opportunity

By Brian Jones

If you are seriously considering forking out your hard-earned money to start a new internet marketing business you need to make an effort to comprehensively analyze the assorted options available to ascertain, for yourself, what's the best MLM business opportunity for you and your future team.

Because not all internet promotion or direct selling businesses are born equal and spending the time upfront, in the beginning, to do your due research can pay of enormously later on. So here are a few things you should consider before making your final choice:

How long has the company been in business? Are they privately owned or in public traded. Who is the management team and what real world experience to they have in operating and growing a World business? Where are they open for business and can the services readily be shipped into different states without custom issues?

These are all very important questions because most new, ground-floor start-up firms fail inside five years. Not some. Most. So even though it may seem like getting in on the ground floor is an advantage, in many cases, it should be a massive warning signal because the odds of this new start up company surviving is extremely slim and your best chance of success is to join a proven MLM business opportunity with a real record which has been in business, on a steady growth curve, for a minimum of five years.

One more thing to consider is the cost of the product and services. Ask yourself this one question, "Would the average individual buy this product or service from this company at this price, under ordinary market conditions, if a MLM business opportunity wasn't attached to it?" If you cannot truthfully answer, "Yes" then you shouldn't join this company.

The reason is solely economics. Understand the general public who start in MLM will sponsor and recruit less than 3 people through their complete careers. Put simply, the general public never do what is important to succeed in their new business. So if these folks are required to make a monthly acquisition of a service or product they wouldn't normally buy at that price... They may cancel their autoship and give up. Which is the reason why the annual attrition rate, the drop out rate, in several network marketing corporations is usually in the 70 to 80% range. And any attrition rate higher than twenty percent yearly will make building a lucrative business fast very challenging.

So the best MLM business opportunity is one that's got a good product that people already use at a price comparable to what they are already purchasing. If they're used to paying $35 for supplement they already use and are now asked to pay $75... If they do not build the business they might quickly give up and go back to paying $35 per bottle.

Next thing you must seriously consider before starting any new business is how, specifically, you propose to advertise, market and promote your new business. Because the final analysis is you won't make any money until you sell a large amount of products and sign up a large amount of new team members. So what is your plan? Because even the best MLM business opportunity out there won't make you a dime unless and until you efficiently and effectively market and promote that business.

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