I was speaking with a telephone prospect the other day regarding
her inquiry about starting a home based business. She really
needed to make extra income but was skeptical about investing yet
again because of two prior experiences in which she had lost her
money. I asked what had led her to choosing those particular
businesses and she simply said the following: "They sounded
good." Sounded good??? "O.K." I said. "But how did
they
look?"
This is an unfortunate and all too common conversation. You can
avoid the mistake of possibly throwing your money away simply by
doing a little homework and using the common sense approach
outlined below.
These 5 key points are essential for you to research before
investing both your time AND money in a home based business.
Does the company have a track record?
While it's entirely
possible to succeed in a start-up, it's also very, very risky
and more likely that you'll experience a rough ride in the
beginning while the company irons out the kinks. What is your
personal time table for achieving your financial goals? If they
are more immediate and you are a novice as well, then think hard
before joining any start-up. Investigate a company's recent
history (2-3 years) to determine whether its operation is tailing
off or taking off. You want to catch a company on the upswing;
one that is experiencing verifiable growth and momentum. All
boats rise with the tide!
Do the principals have a track record?
Find out who's running
the company! Good, smart, successful business leaders have a
history that can be identified. Would you invest your time,
money, and future in following a failure? Everyone leaves clues
and a trail. Make sure the people you're trusting are tested and
have passed the test.
Is the company publicly traded and/or a member
of the DSA (Direct Selling Association)?
If a company is publicly traded it
is a glass house. As talented as we may be, none of us has the
ability or the resources to investigate and scrutinize a company
quite like the SEC (Security and Exchange Commission). The DSA is
an independent national trade association located in Washington,
D.C. It fully investigates a company's background before it can
qualify to be admitted as a member. A company having one or, even
better, both of these components will help ensure that you're
investing in a business that operates ethically and is both
credible and legitimate. If not, watch out!
Is the company's compensation plan tested?
In general there
are four basic types of compensation plans that exist in Network
Marketing and others that are a hybrid or combination of the
four. I won't discuss the details and merits of each of the
different plans (although I definitely have a preference) because
that's not the focus of this article. But whichever plan exists,
make sure it's proven or you may end up greatly disappointed.
Are people getting paid on time and are they getting paid the
full amount earned? How often has the compensation plan changed,
if at all? Are there numerous complaints and reports of
discrepancies between the reps and the company? The answers will
be able to help you assess the viability of the company's
business plan and its financial stability and commitment to the
long term.
Who is your support team?
Can your sponsor/upline provide you
with the right leadership and training in order for you to
achieve success? Remember, the person who's enrolling you may
themselves be new. That's alright, as long as there are
experienced, caring, and supportive individuals that are willing
and wanting to help. Not just lip service, but true leaders who
have a system in place and the ability to walk you through it. In
our business, these leaders have a vested interest in your
success and know it! How do you gauge their sincerity and
effectiveness? Talk with them. Talk to others on the team. Ask
questions. Meet with them if geographically possible. Again,
successful people have a history that can be verified. You're
not just choosing a business, you're also choosing the people
that will be your daily mentors and business partners, and that
decision is VERY IMPORTANT.
Our industry is so special because it offers great rewards to
anyone with a dream and a consistent effort towards achieving
that dream. More time with family, more money, no debt, a better
quality of life, a comfortable retirement... FREEDOM! These are
the things all of us want and you are absolutely right to pursue
them. However, if you are just like the woman who twice lost her
money, then the problem is not in your dreams... it's in your
research!
Companies, management, business plans, products and services, are
both good and bad, successful and unsuccessful, whether they
exist in Network Marketing or Corporate America. Good
opportunities are out there and you CAN find what you're looking
for in a home based business. Just remember to do your homework!
That way you can make an intelligent and informed business
decision that will be the right one for you and your family.
Larry Zimberg: Is an accomplished Network
Marketer and Success
Coach. He has trained tens of thousands of individuals and built
massive organizations. "The key to financial success is to have
a
simple automated system that drives 1000's of real prospects to
your website, without spending a dime on leads!" Build your team
10x as fast with half the effort. Discover what really works
RIGHT NOW! Get my Free Report at www.YouDontHavetoSell.com"Let
me know how I might help you build your dream instead of someone else's!" Learn
more at: www.YouDontHavetoSell.com.
