Low cost of entry
The distributors would have leads coming to them
Distributors don't have bug friends and family
Everyone needs or is currently spending money on that product
I had the same questions when I found out that the company I was with did not fit the perfect company criteria.
The company must have:
1) Management that at least had made it in the MLM business as distributors before they started in the company Management , so they
can train the people, not the recruiting sharks that they HIRE to represent the company. Also I believe that there should be a system other then - Make your List System - for leads generation. I hated asking my friends who are not interested in MLM to join or try the products. The people who are looking to for a home business are the leads I want. I have found a system and I am happy to say that it works. I am just starting but I have about 10 leads over the last 2 weeks.
2) Before I would look at the cost to join I would look at the products that company offers. Is the timing right and there are people who are currently in need of those products. Do some research here! What about the cost of the product? Is this company making it hard for you to make profit on your retail sales? Wholesale vs retail price must be the same otherwise you are loosing your customers to ebay and amazon.coms. Is it a product that you would buy if there where no business opportunity attached to it?
3) When I look at the comp Plan I want to see some numbers. My mentors thought me to ask 2 questions.
How many active distributors do I need in my down line to have a walk away residual income of 10k per month - not including bonuses? The company I am with - I only need 300-400 users/distributors, whichever comes first! Do I know where to find 300-400 people - No !- That is where the SYSTEM is needed ( see #1)
If I bring $500 worth in regular month to month business how much will I get paid? In my case $50-$100. You want to be with a company that pays part time folks. Remember the 3.5 people that an average MLMer brings in?
Simple enough...Right? Well, not if you have to first qualify
... Look for Hoops that you have to Jump through before you get your check.... Also I think you should get paid on every single person that is buying the products not (lesser leg) . That is just my opinion.
4) Then there is a cost to start a business... If the company wants you to pay them $500 for a website, then I would think again. If it is a consumable product, then it's should be discounted... If there is a monthly cost for a cookie cutter website , then you are one of many people who is generating an income for your company without them actual doing anything, becouse there is no cost to replicate a website
! Also a renewal Fee? I am not sure you should be charged for working for someone... Is your current employer charging you to use the computer or phone? NOT!
I know I've missed something... See this video for more info...http://katebaer.ning.com/video/video/show?id=2379443%3AVideo%3A13