The 3 Facts You Must Know About Your MLM Company Or You Will Look Like A Fool!

This post is probably being created out of despair more than anything else but I think it carries some truth to it. Please read forward...

I am talking to so many network marketers that I have the possibility to run my own little unofficial surveys and discover some trends along the way. Some are really empowering but man some of them are REALLY scary and disheartening.

I talk to week after week to people who just have no clue about what the MLM company they got involved with actually is. I just cannot put my head around this one!

This may be because of my engineering background and my analytical side but how can you put your future and the future of the people around you in a MLM business opportunity if you do not even know anything about the company you are involved with!

So please, if you realize this might be you, you want to make sure you can answer all the questions people might ask you when you prospect for new business partners and even customers.

Some might tell you to let the tools do the work of presenting the company and answering those questions. In my opinion, you will just look like a fool if you can't answer those absolute basic questions.

1. What is the MLM company history? Who are the founders and executive team?

You must know who you are planning on building a team with! The founders and the executive team are the base of the company. If they do not have a solid track record in the industry, you might be putting your future in the hands of some not very reliable people. They can make mistakes or decide to just shut down the network marketing branch of the company. I have seen this happen numerous times in the past.

So make sure you know the basics about the company and the vision of the founders and exec team in place for the company and for you!

2. What are the products?

This is a little bit of a tricky one because the answer may not be as straightforward as knowing exactly what each product is. You must know, based on who you are talking to, how to present the products and in some cases what product to present. Let's say you are in a nutrition company. If you are talking to a young, active and healthy person, you may be able to present some product that is targeted for this demographics.

So make sure you know all the products your company carries and have a plan every time you talk to someone about them. Don't just do a full description of all of them...

3. What is the compensation plan?

Overall this one is the worst! Here is what I get most of the time.

Me: "So what is the compensation plan? How do you make money with it?"

XYZ Rep: "Well, it's a plan that has some levels and then you sponsor people and then you get a check!"

Me: "OK, hum, so what is the actual, real plan payout?"

XYZ Rep: "The what?"

Did that ever happened to you?

I mean, come on, if you don't even know how much the MLM company pays you, how do you know if you are not working for just peanuts! You must know and make sure that the compensation plan is actually balanced and sustainable. You can get a company that is going to payout 90% commission right now but 2 years from now they will just shut down because they can't keep paying such a high percentage.

If you are going to invest months and even years of your life in building a business in partnership with a company, don't you think it makes sense to know that the compensation plan does pay the distributors a fair commission out of every sale? That is also why I am not a big fan of binary plan (I am not bashing anybody, just hear me out). Most of the binary plans are actually designed in such a way that they expect you to fail in your attempt in balancing the binary legs and the volume you can't balance will either stay stuck or it can even "break" go back to the company. Gone. Talk about fair...

So make sure you know what type of compensation plan your company is based on, is it fair at all levels of leadership and know how much they actually pay you and your overall team!

So to summarize in a few simple words...

Know your MLM Company!

So let the tools do the work day after day and for all your presentations. But, please, do still know what your MLM company is all about so you can be confident and exited when you talk about it!

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