choosing mlm opportunity

A Mom’s Requirements for Choosing an MLM

As a busy mom juggling the demands of motherhood and household responsibilities, choosing the right MLM (Multi-Level Marketing) opportunity can be daunting. As a mom myself, I understand the importance of choosing wisely when it comes to diving into the world of multi-level marketing. With countless options promising financial freedom and flexible working hours vying for your attention, setting clear requirements that align with your values and goals is crucial to starting a venture with clarity and confidence.

In this article, we will explore the essential criteria that every savvy mom should consider before selecting an MLM venture. From assessing product quality to evaluating compensation plans, arming yourself with knowledge and insights will empower you to make a well-informed decision that aligns with your faith, values, and goals.

So, grab a cup of coffee (or tea if that's your style), and let’s embark on this journey together as we unravel the key factors that should influence your decision-making process when venturing into direct sales.

Understanding the MLM Concept

MLM, or Multi-Level Marketing, is a business model that relies on recruiting a network of individuals to sell products or services.

It often garners mixed reactions due to its “pyramid-like” structure and emphasis on recruitment. However, proponents argue that MLM-structured businesses offer an opportunity for individuals to build their own businesses with low initial investment.

I hear all the time “MLM isn't a real business,” but as someone with an undergrad in business strategy, I can tell you this isn't further from the truth. Your business in MLM is marketing. You're a freelance marketer for the company(ies) you choose.

One key aspect of MLM is the focus on building a team and nurturing relationships within that team. While not required in all companies to advance and achieve additional bonuses, the collaborative approach of recruiting a team may lead to leveraged teamwork and support, ultimately contributing to higher success rates for the entire network (not just your mentors').

Understanding the MLM concept involves recognizing the importance of developing personal networks and strong communication skills to market products and expand your reach more effectively.

Critics of MLM often raise concerns about the potential for exploitation or deceptive practices within the industry. While these issues do exist in some cases, it's crucial to distinguish between legitimate MLM companies and scams. Choosing the right team to join is also crucial, ensuring you're set up to receive the type of support you need the most.

By conducting thorough research, evaluating compensation structures, and seeking guidance from experienced professionals, individuals can make informed decisions about joining an MLM opportunity that aligns with their goals and values.

Products and Market Demand

If you already have a network to pitch to, then you'll want an opportunity that honors the needs and values of your network.

For example, my network is largely comprised of Christian women, so I wouldn't endorse a company that pushes new-age ideologies.

Overall market demand doesn't matter as much as your network's needs and market demand.

If you don't have a network, you can still be successful and develop one. Consider what you're knowledgable or interested in, and look for a company that offers an opportunity in that niche. There are plenty of ways to build a new network from scratch just by sharing knowledge and testimonials. Use hashtags and keywords in your posts to help your prospective customers and team leaders to find you, and share your knowledge as you learn.

Company Reputation and Track Record

If you notice a company that might align with what you're looking for, take a look at the corporate leadership.

  • Have they been involved in unethical [or illegal] practices?
  • Do corporate leadership actions align with your faith, values, and morals?
  • Does the company's policies and procedures limit you in what you can say or other opportunities you can participate in? Is that ok with you?
  • Does the compensation plan look reasonable?
  • Is there an actual product or service involved?

Each of those bullet points are very important to consider. But I want to focus for a moment on the last two of those four.

Does the compensation plan look reasonable?” I'll touch more on that in the next section.

Is there an actual product or service involved” – this is critical and can define a thin line between a “network marketing opportunity” and an “illegal pyramid scheme.”

So stop for a second and look at the legal definition of what a pyramid scheme is:

A pyramid scheme is a fraudulent and unsustainable investment pitch that relies on promising unrealistic returns from imaginary investments. The early investors actually get paid those big returns, which leads them to recommend the scheme to others. Investors' returns are paid out of the new money flowing in. Eventually, no new investors can be found and the pyramid collapses.

In a variation of the pyramid scheme, investors at each level charge initiation fees that are paid by the next layer of investors. A portion of those fees is paid on to those in the top layers of the pyramid. Eventually, no one is left to recruit. The pyramid collapses.

Investopedia

In summary… if you come across an opportunity (which I've seen several of lately) that promises you will be paid based on money other people pay and there is no tangible product being purchased, run!

Legitimate opportunities are structured around a specific product or service. Something you receive in exchange for your purchase, whether it is something you can hold in your hand or a special training you can take to improve your life in one way or other… not just swapping a little cash for more cash.

Tips To Choosing The Right Products To Maximize Earnings

I love the thought of having a product or service that enables you to gain repeat sales, especially if there is an automated subscription option available.

Being on a membership or subscription enables you to better sustain your business and have more reliable commissions so you're not starting over each and every month.

Niche examples include:

Of course, there are also high-ticket opportunities that don't offer subscriptions, such as water systems, solar panels, etc.

Personally, I prefer the monthly subscription options. Monthly subscriptions just offers more stability and consistency.

Compensation Structure and Potential Earnings

This one is huge. You don't want to feel taken advantage of because of a poor compensation plan.

When evaluating an MLM compensation plan, it's crucial to scrutinize the structure and understand how you can earn money. Look for a plan that offers multiple ways to generate income, such as retail sales commissions, team-building bonuses, and leadership milestone bonuses.

Also, consider the requirements needed to qualify for each type of commission and ensure they align with your business goals.

It's important to focus on sustainability when choosing an MLM compensation plan. Avoid plans that heavily rely on recruiting new members without strongly emphasizing product sales. Look for a balance between recruiting incentives and retail profits to ensure long-term success in the business… several opportunities even allow you to advance through the compensation plan without recruiting anyone.

Every MLM company is required by the US FTC (Federal Trade Commission) to produce an annual Income Disclosure Statement (IDS) that tells you how much money is earned on average for each rank in the compensation plan, and the percentage of people qualifying for each rank.

Looking at the IDS, do you feel the rank you'd need to achieve to meet your financial goals is attainable [with the right growth strategy]?

Training and Support for Success

As you grow your MLM business, one thing becomes abundantly clear: training and support are the backbone of success.

While some may underestimate the importance of ongoing training, seasoned MLM entrepreneurs understand that continuous learning is key to staying ahead.

This dynamic industry demands adaptability and a willingness to evolve with changing trends, making it crucial for aspiring leaders to stay informed and well-equipped.

To truly thrive in multi-level marketing, embracing a growth mindset is essential. Seek mentors who can provide valuable insights and guidance as you navigate the complexities of building your business network.

Remember, success in MLM is not just about selling products; it's about building relationships and empowering others to succeed alongside you.

By investing in your own development and offering unwavering support to your team members, you pave the way for sustainable growth and long-term success in this ever-evolving landscape.

There are a few main reasons MLM reps struggle:

  • Lack of focus
  • Lack of alignment
  • Lack of support
  • Lack of time
  • Lack of cash flow

These issues can cause enough resentment to quit… and each can be alleviated by finding the right mentorship.

Make sure your opportunity comes with the right team leaders who can help you grow based on your strengths, weaknesses, values, and lifestyle needs… not just by telling you to do what they did. (Not all marketing practices will work the same for everyone, which is where most people get stuck)

Balancing Family Life With MLM Commitments

Choosing an MLM is not just about selling products or recruiting team members; it's about finding a business opportunity that resonates with your lifestyle and aspirations.

In my MLM ventures, I'm very strict with my “family first” policy. So I leverage my evergreen marketing knowledge to continue to earn commissions based on things I did even 5-10 years ago!

Thankfully, many multi-level opportunities (and their compensation plans) can accommodate for the flexibility families need.

I spend most of my days with my kiddos, homeschooling and taking them to various extracurricular activities. My network marketing business fits in the spaces between where I have a little downtime while my kids have their independent play or study time and sometimes while at the park.

Living a busy life where we routinely move (military family), and have a lot going on in our daily routine, I empathize with your need to establish a healthy work-life balance, and not allow your MLM to spill over into every sector of your family's physical and mental wellbeing.

Making an Informed Decision for Success

When choosing an MLM opportunity, look beyond just the products being offered.

Consider the company's history, reputation, and leadership team.

Look for transparency in their compensation plan, ensuring that it is fair and achievable for all members.

It’s also important to assess the training and support system provided by the MLM company.

A strong support system can make a huge difference in your success!!

Additionally, trust your instincts when evaluating different opportunities – if something feels too good to be true or raises red flags, it's probably best to steer clear.

Remember that finding the right MLM opportunity requires patience and due diligence but can ultimately lead to financial freedom and personal growth.

Curious which company I landed with?

If you're not sure where to start, head over to my new biz quiz and see what is right for you.

Author: Nicole Graber

Title: Writer, Editor, Wellness Consultant, Business Strategist

Expertise: Natural Wellness, Healthy Lifestyle, Home Business Strategy, Motherhood

Bio:

Nicole is a writer, healthy lifestyle consultant, and faith-based business strategist at Gracefully Abundant, with bylines on MSN and the AP newswire. As a survivor of homelessness and chronic health issues, she discovered a purpose in guiding people toward a healthier lifestyle and increased income.

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