Multi Level Marketing (MLM) companies have exploded in popularity, and rightfully so! Many individuals have been granted the flexibility of working from home and earning a steady stream of income promoting products that they personally love and enjoy. In exchange for selling directly to consumers and recruiting members on your team, you can earn commissions and other benefits. While many of these MLM companies offer great potential, it certainly isn’t without risk. Here’s what you can do to protect your pocketbook.
Determine An Income Goal
Set your sights on a number. Whether it’s weekly or monthly, write your numeric income goal of how much cash you want in your pocket at the end of the week or month. Also, think about what you want that income to be used for. Do you need an extra $200 to pay your rent a month? Want to stash $500 away in your savings account each month? Just looking for $100 in fun money a week? How you’ll spend the income you earn might change your business goals.
Track Your Expenses
Write down any and all expenses you incur as a Direct Sales Representative of your MLM company. Use either a notebook or a spreadsheet (whatever is easiest for you!) and keep a running tally on expenses like: website fees, recruiting costs, advertisement, product purchases, giveaways, shipping, mileage, etc. This is one of the most important steps you can take as a Direct Sales Representative. You want to ensure that you are a profitable business and not just another customer to your company.
Never Spend More Than You Earn
The reason you were attracted to the MLM offer was to earn money, right? Don’t forget that!
Be Realistic With Your Time Commitment
How much time can you dedicate to your business to ensure its success? If you’re working full time and going to school and you have a family to take care of, will you be stretching yourself too thin?
Know When To Call It Quits
We’d only sign up to work for a MLM company if we loved the products, of course. However, if your business expenses (including purchasing of products) are continually higher than your income, it might be time to walk away.
My personal experience with a MLM opportunity was great but in the end, I realized it was not a profitable venture for myself. It was a great way to earn products and purchase products at an attractive discount but it was not a sustainable income and there were many months that I was simply paying a website fee without a single dime in sales.
Bottom line, don’t feel pressured into the decision. A quick Google search will likely answer many of your company specific burning questions. Take your time to do your research and trust that you know what’s best for yourself and your financial situation.