NOTE: With this article, Towel & Basin continues its celebration of Women’s History Month by serving and supporting, encouraging and empowering women who are making history today.
Before you signup for a MLM business, be certain that:
You understand some of the pros and cons of a MLM.
You have determined that you have the skills and personality to run one successfully.
You researched the MLM opportunity, and it passed your evaluation process.
But there is another component for success:
The moms who are successful with MLM chose a company that aligns well with their goals and values.
How can you find a MLM company that’s a good fit for you? To get good answers, ask yourself (and the company) good questions. Here are some to get you started.
What is my commission?
How much do you get from each sale? This number can vary widely from company to company so pay attention to this information.
Less is not necessarily bad. If you sell products that people will buy more than one of (for example, seasonings for cooking), and you get a small percentage of the sale, you’ll likely do well if people buy several items each time they make a purchase.
Conversely, you might get a larger percentage on some sales. But if people buy those items rarely and only make single purchases, your commission might actually be lower than someone else who sells smaller items and takes a smaller cut.
Bottom line: Have a degree of certainty that you can make enough sales to meet the income goals you’ve set for yourself. Ask other company reps how they do and how much they sell to meet their individual income goals.
What is the likelihood I’ll get repeat buyers?
There’s a general consensus among people who sell products for MLM companies that consumable products are the best to sell. Products that people use up or eat increases the likelihood that they will then need more of those products.
Consumable products include, skincare, makeup, and food. Products related to some hobbies might fall in this category also, especially if a person is a devoted enthusiast.
For some products, it can be difficult to build a customer base that will come back to you again and again.
For example, being a rep with a home décor company, you might do well selling to people. But those customers aren’t going to need more of your product – or at least not for some time. Yes, they might come to you when they need a gift, or they are redecorating a room. But they just won’t consume the products the same way they will consume food, makeup or cleaning supplies.
Bottom line: Your interests are a valid factor when choosing the products you want to sell, so if you are passionate about a product – even if it is not a consumable product, go for it. Just realize that with non-consumable products, the likelihood of regular, repeat buyers is very low.
What is the reputation of the company?
A company’s reputation is important to you as a rep. That reputation can heavily influence the experience you can expect to have and the experience your potential customers may have –if, given the reputation, they even give the product a second look.
Put plainly, if the company has a poor reputation, you will have a tough time selling, no matter how good they are to you or you are at selling.
Ask questions of current and former representatives of a company you are considering. What kinds of experiences did they have? If they report that their commission was good and they enjoyed some of the perks the company offered but also said that often the company shipped slowly and billed incorrectly, you need to think twice before signing up.
Even if a company treats its consultants like kings and queens, your customer will feel slighted if they are not treated well. The customer matters. So be certain that the **company is one that your customers will enjoy a positive experience.
Bottom line: Any negative experience a customer has with the company ends up affecting your reputation. Because for your customer, you are the face of that company.
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Working as a representative for a MLM company can be very rewarding if you find one that fits you. Do your research to ensure that a particular company is a good one for you.
Resources
MLMs: Pros and Cons for Work-at-Home Moms
Evaluating a MLM Business Opportunity
The Top 25 MLMs by Revenue
100 Best & Top MLM Companies in the USA in 2022