Can I Really Be My Own Boss? 5 Things You Should Know BEFORE You Quit Your Job

The “Skinny” on Network Marketing, MLM and Home-Based Businesses. Trying To Decide If Network Marketing is Right For You…

Everywhere you turn, news of financial disaster abounds. The U.S. economy is in a severe recession, home values have fallen significantly, and retirement plans have been cut in half, (or in some cases, completely wiped out). As the Baby Boomers enter their 60s, Gen X-ers face (another year of living at home with their parents and Gen Y-ers welcomed into a dismal job market, we all are coming to the realization that 40-year plan (i.e. work 40 years to retire on 40% of your income) just doesn’t cut it anymore. In fact, in most cases, it is no longer even an option. As a result, Americans everywhere are open to new ways to diversify their incomes and get their families back on track.

Network Marketing (also known as Multi-Level Marketing or Direct Sales) has been an area that has, for decades, offered a pathway to financial independence for the average person, and a legitimate opportunity to achieve true wealth. However, for many, it has also meant dashed hopes and disappointment. But why such extremes? What separates those who are successful from those who drown in annals of MLM misfortune? For those who are new to the industry, network marketing is a selling strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they bring into the company. The products and company are marketed directly to consumers and potential business partners by means of referrals and word of mouth advertising. Independent (distributors develop their organizations by gaining customers of the products their company sells, who buy directly from the parent company, or by recruiting a downline of independent (marketers who also build a customer base. Distributors earn a commission based on the sales efforts of their organization, which includes their individual sale efforts, as well as, the (leveraged sales efforts of their downline.

Financial and real estate investment educators, successful businesspeople and celebrities alike have been advocates of or involved with the network marketing formula for years, including Robert Kiyosaki (author of Rich Dad, Poor Dad), Donald Trump (real estate mogul), Danny Glover (world-renowned actor) and Deepak Chopra (New Thought spiritual leader). And as the economy continues to shift, countless others will see this as a viable strategy with which to create financial stability for themselves and their families. So then, what’s all the concern about? Well, for starters, network marketing is not for the faint of heart. One must truly have an entrepreneurial spirit to position themselves for success in this industry. One must be self-motivated and self-disciplined above all else. So before you dive in or encourages others to, here are 5 things to consider before you launch any home-based business or opportunity. And if you’ve already joined, use this as a checklist to ensure you’re in an opportunity that aligns with your values.

Top 5 Questions To Ask Yourself…

1. Are you excited about the products?

Could you envision using them on a long-term, continual basis? Is there a compelling reason that others would too? Would others buy it even if they did not join your business? Would you feel comfortable asking strangers to try the product(s)?

2. Can you honestly see yourself telling everyone you know about these phenomenal products?

HINT: You must genuinely think they’re phenomenal products, otherwise you’ll just come across as an insincere salesperson hawking snake-oil.

3. What is the compensation plan?

Are you paid commissions, and if so, on how many levels? Is there a limit to how broad your front line (I.e. your first level on which commissions are paid) can be? HINT: The more favorable plans have no limit on your front line partners. The better plans also have generous bonus pools shared by top-performers, sign-up bonuses and some even offer new-car incentives.

4. What is the value of goods received relative to any sign-up or membership costs?

Take a close look at your membership and/or sign-up fees. What exactly do you get in exchange for your money and what is its retail value? Meaning, if you later decided not to be in the business, could you still sell the products at retail and get a fair return on your investment, if not full value? (HINT: the answer should be yes.)

5. What is the return policy?

Reputable companies offer a tangible product in exchange for sales and therefore will offer a return policy on unused product. Typically, you have up to 30 days to return something and their customer service department will work with you to ensure your satisfaction.

Final Thoughts…

The most important thing to remember is to have realistic expectations. Although you may hear tales of meteoric sales, earning money in your sleep without any effort or salesmanship, or of the mystery marketer who sponsored 10 people in a week and earned 5 figure checks in as little as a month, keep in mind that for most people it takes many, many months, even years to generate this kind of income.

Be diligent and committed in your efforts and allow time for the beauty of this industry (leverage) to take effect. If you make it a habit of jumping from opportunity to opportunity in pursuit of greener grass, you’ll never get to reap the benefits of building and maintaining a substantial downline which is where the greatest benefits lie.

Be prepared to give a persistent effort for at least 18-24 months to generate a significant residual income and to begin to see lifestyle freedom. It is wise not to enter any opportunity from a point of desperation as it takes time and effort to grow a successful business. With the more generous plans, you will find opportunities to recoup your investment quickly. However, be mindful that there are indeed initial investment and start up costs associated with joining a MLM company or home-based business, as with any other business. Although far less than purchasing a franchise, you still have to plan for these costs and allow time for your sales to recoup them.

Know your ‘why.’ Why are you doing this? You need to have a compelling reason to last you through the dry, rough patches. Being a business owner is not for the faint of heart. It’s very different from the traditional corporate job, in so much as, you do not get paid irrespective of your productivity.

With network marketing or multi-level marketing, your productivity is measured by one thing only — your sales. Don’t let anyone tell you that you will not have to sell anything. (We all sell something, be it ourselves or a product. So get over any hang-ups about selling now.) (Because of this, there may be some months where you don’t get paid anything despite your efforts, especially in the beginning. So be sure to figure out your ‘why’ well in advance so that you can make a solid decision and stick with it during the dry season(s).

Treat it like a business, not a hobby. This means setting up a workable schedule to dedicate to your business and being self-disciplined enough to commit to the business even when you don’t feel like it. No one will be looking over your shoulder (no bosses and no coworkers) to make sure you’re actually doing what you said you would do. So it’s imperative that you remain disciplined in order to see any success.

Can I Really Be My Own Boss? 5 Things You Should Know BEFORE You Quit Your Job