Looking At The “Network” Market – Questions You Should Ask Before Joining A BusinessPosted on Timeless 2 comments
The Keyword In This Business Is: Network
This could be your business network or your personal network,
bottom line you need to create a network.
When you are looking at going into a network marketing business there are vital questions you must ask.
- How do you get paid? Some companies only have a couple of different ways to get paid while others have multiple ways of getting paid.
- When you do get paid? Is it one time payments or is it recurring/residual income?
- Is the residual paid on people that you sign up as reps or on recurring purchases by clients?
- When you get a percentage of sales, what is the average sales amount and what percentage of that do you get?
- Is the product or service a one time purchase or is it a recurring purchase, and is the product/service something that is relevant?
- Is the product consumable or service renewable? If not what is the expected life span of the product?
Some More “Network Marketing” Considerations
The more ways of getting paid the more chances you have of making money. Think about it, if all you get paid for is signing up reps that is going to get old fast! The “network” part of your business should only be part of it. The dream of network marketers is to build a business for a given number of years and then you relax and reap the benefits of your labors through residual income.
The question above, concerning where the residual income is coming from is a huge concern here. It could come from other reps in your down line, from recurring billing of a business, or both. Without residual income there would be no incentive for working many hours with no pay while you are building for the future.
Another big question concerns the price point of the product and the percentage of which you get to take home. When you look at a networking company if the product is a one time purchase, it has to be big enough that the pay out is worth it. Even then, it is hard to build a residual income from any place other than signing up new reps. Not a good place to be.
If you can find a business that sells a service that people use everyday and one that does not require a change in their behavior, that is better than a product that they can do without or get locally with less effort. I hope you can see the difference here.
So, another option is business to business sales, again this has to be a product or service that is necessary and not easily gotten from another source. Such as Mobile Media Marketing. This option, thankfully, helps reduce the demanding efforts of building your personal network.
So, best case scenario is a product or service with a moderate to high price point, that is consumable or renewable and then combine that with multiple ways of getting paid and you have a winner!
Finally, keep your expectations in check and be aware of changes in the market place and your product sector.
As you can see below there is a constant change in the world of entrepreneurship created by the life cycle of businesses.
Here’s the average failure rate of all small businesses:
First Year – 85% success
Second Year – 70% success
Third year – 62% success
Fourth Year – 55% success
Fifth Year 50% success
Sixth Year – 47% success
Seventh Year – 44% success
Eighth Year – 41% success
Ninth Year – 38% success
Tenth Year – 35% success
This is not to discourage you, but to make you aware. Remember nothing ever stays the same, you just have to learn to ride the waves!
Thanks for coming by,
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