6 Questions You Should Ask Before Joining Any Network Marketing Company

The Million Dollar Question

One of the most common questions I’ve been asked since becoming a financial counselor for my church and now a speaker & blogger on the subject of financial stewardship is:

“Carlos, what do you think about Network Marketing?  And more specifically what do you think about XYZ Company?”

Two quick things run through my mind at this point:

1. This person is truly sincere and wants my honest opinion to help them make a informed decision…….OR
2. This is a not so effective way to pique my interest about a new Network Marketing company that they’ve already joined!

I’ve learned that if you are consistently asked a question that (a) You’ve tapped into a need in the market, or (b) it’s time to create a “Frequently Asked Question” resource!  But before I answer this question and give you the “6 Questions You Should Ask Before Joining Any Network Marketing Company”, I’d like to take you on a quick journey through my first hand experience in the Network Marketing industry!

My first seven days in Network Marketing

In 2001 I got the phone call that anyone who’s been alive for the past 30 hears has probably gotten!  Let me know if you’ve heard this in one form or fashion:

“Carlos if there was a way that you could make more money without quitting your current job would you be open to hearing about it?”

And like thousands, if not millions, of others all over the world the next thing I knew I found myself at a meeting, surrounded by highly energetic and positive people!  It was intoxicating!  Needless to say, in less than seven days I made the $499 investment to join the company and I was off to the races!  I was bound and determined to make as much money as possible and become the next success story that everyone would read about!

The 90 Day Race and 12 Month Crash!

The next 3 months went a little something like this:

• Make a list,
• learn how to pique everyone I know,
• get them on a conference call,
• have a home meeting,
• Get Customers (mom, dad, brother, best friends that wouldn’t say no)
• Go to training
• Present, Present, Present
  
• Sign up for National Convention
• Repeat….

The great thing was, in less than 30 Days I made my investment back plus $1.00 ($500)!  And then in the next 60 days I made the first position with the company and earned an extra $1000.00 along with the commissions I earned along the way to get to that position!  Next thing I knew I was at the National Convention, now instead of a room full of positive people I was surrounded by thousands of people who were out of their mind about the company and the opportunity!  Optimism and faith in an opportunity could not have been higher!  I was fired up and ready to quit my job and go at this thing full time!

The next 12 months did not go so well!  Yes I made a little more money, but I definitely spent more money traveling to training events than I actually made.  I was now questioning the company, my sponsor and worse off I was spending so much time working the business that I neglected the number one reason I joined, my family!  My wife was upset and my kids were missing me because I had my priorities all out of wack!  I was burned out, frustrated and losing money!  So I did what a high percentage of people do after joining, I quit!

The Lessons I learned during my time in Network Marketing:

Let me start off by saying that I would not trade my experience in network marketing for anything!  There are many things that I learned that I still apply to this day in many areas of my life!  Here’s a quick liest of the things I learned:

1. People are going to talk about you! So what? Just know it’s going to happen and keep pressing towards your WHY!
2. If your married, get your spouse on board with your plans! This doesn’t necessarily mean that they are active in the business with you but keep them informed of your plans and your vision!  Help them understand “WHY” your doing what your doing with the company!
3. Your not in the soap, telephone, magic berry, legal industry! You are in the “Network Marketing” industry!  Study it and learn as much about as possible while your making your way to Diamond, Platinum, SVP ect….
4. Be Coachable! One of my greatest strengths is that I am very coachable.  If I see that someone know’s how to get results I humble myself and accept their coaching and I go out and immediately apply it!  Anyways, it’s never fun to work with a know it all!
5. Presentation Skills are priceless!- I learned so much about the art of presenting that I don’t have time to put it hear!
6. Call your “Chicken List”- Your chicken list is the names of the people that you know that you are scared to call because you feel for one reason or another that they are to busy or important to listen to you!  These are the people you need to call, or have your sponsor call with you!
7. Not everbody wants it!- One of my biggest mistakes I made when I first started was presenting the opportunity to who I perceived that needed it but didn’t really want it!  I saw that they were broke, busted and disgusted like I was but I also knew from past experience that they weren’t going to do anything about it! NOTE: Present the opportunity to everyone but focus on that “chicken list”.
   
8. Treat it like a business, because it is a business!
   
9. Budget your time and money wisely- Excitement and enthusiasm are a must but don’t let it cloud making wise business and family decisions!  Remember your priorities and stick to them!  Your son will only have one, “first baseball game”, don’t miss it for a meeting!

So Here’s My Answer to the Million Dollar Question:

Question: “Carlos, what do you think about Network Marketing?  And more specifically what do you think about XYZ Company?”

My Answer: “I love the network marketing industry! Joining a network marketing company was one of the greatest investments I’ve ever made in myself!  And based solely on my own experience here are the 6 questions I believe you should ask before investing your time and money in a Network Marketing Company”:

1. Is it what God wants you to do? WARNING- I have to be careful in saying what I’m about to say, but it needs to be said, so here we go…..Be prepared to hear this in a presentation: “many of you have been praying for God to send you an opportunity, well here it is!”  For many people this is true, you might have been praying for God to send you an opportunity!  But just because it’s a good opportunity does not make it the right opportunity for you!  It could be a distraction!  To balance this out also make sure you examine whether or not your using the “I’ll go pray about it” answer as an excuse not to take action!
2. Do they have a good great system in place to support you? – During most presentations you’ll hear how important systems are to having a successful business and the McDonalds story is usually thrown out around this time.  Nothing could be more true!  The system is the most important part of any network marketing company!
3. Do you believe in the product or service they are providing? Remember that this is really not the most important thing but it’s an important thing!  You are not in the “soap” industry you are in the “Network Marketing” industry!  Beware- If there is no true product or service being exchanged and all that’s being sold is a way to make money by having people join and making overrides off of people that join below you then you’ve now stepped into the illegal world of “Pyramid Schemes”!
4. Do they have the training in place to support your growth in the company?- Regular training on approaching people, presentation skills, edifying, teamwork and products are extremely important!  You will be able to leverage these skills in every area of your life!  I believe that in many cases that the training alone is worth the investment!
5. Does the compensation plan reward you for the work you put in? – Find out how you will be compensated for promoting the product/service, sponsoring others to join and most important how will you create residual income?  I could probably make this number 7, but seek out testimonials of people who have actually gotten results and have been paid!
6. Are you ready to hustle? – Hustle does not have to be a bad word!  When I say hustle, I’m saying are you ready to work hard?  Because don’t you be fooled for one second, network marketing is hard work! Anyone that is trying to sell it to you any other way is lying and you should run!  But remember hard work does not mean that it’s not fun and worthwhile work!  And for many people that hard work has paid off in more ways than just financially!

I believe if you can answer those questions in a satisfactory way then go for it, invest in yourself!

So what are your thoughts?

Good or bad, what’s your experience been with Network Marketing?  What other things should someone consider before investing in a Network Marketing opportunity?

Article by Carlos Frank- Carlos is extremely passionate about helping people gain control of their personal finances. In his personal life, Carlos had to overcome poverty, severe paycheck to paycheck living and layoffs from 3 jobs in corporate America! Carlos is now a highly sought after speaker at churches, colleges, businesses and non-profit organizations. Carlos is also a frequent television and radio show commentator on the topic of personal finances across the country. You can follow Carlos on Twitter @CarlosFrank. You can become a fan of Good Steward Keys on facebook.

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