Business Archives - Faith FULL Footsteps

Considering Network Marketing? Read This First!

by Kelli Garms | Feb 15, 2021 | Business

So many people are looking for ways to add a stream of income to their families. Now that many are working from home, network marketing has come to the forefront. But not all network marketing companies are created equal. Here are some things to consider BEFORE you sign on the dotted line. (If you’ve already signed up, it is still a good idea to know the answers to these questions.)

How quickly can you earn back your investment?

Most network marketing companies have a “kit” for you to buy when you begin your business. I’ve seen these kits range from $99 to upwards of $1500 depending on the amount inventory you carry. So how quickly can you earn that back and start making a profit?

Things to consider include:

Does the compensation plan require you to structure your organization a certain way to make money?
Is the compensation plan clear, and is it easy to build your business and turn a profit?
Does the company require you to make a personal minimum purchase each month?
Do you make a commission on sales of product and on building a team (both, not just one)?
Are you required to carry inventory?
Does the company have bonuses and incentives when you begin your business to help you earn back your investment sooner? (My company calls it “Smart Start.”)

Are the products consumable?

When I sold purses, there came a point when my best customers had enough purses. It was not a consumable product. Although this isn’t a deal-breaker, it does mean you will need to continue to get new customers, and your warm market will dry up quickly. So it’s best to sell products that will runout. And they need to run out rather quickly. Let me use makeup as an example: Mascara is consumable. It runs out quickly enough for me to reorder. Blush, on the other hand, seems to run out long after my favorite color has been discontinued.

Another thing to consider when it comes to consumable products is the reorder process. Do the customers set up some type of automatic reorder so that the products arrive on their doorsteps with little to no effort on their part? If not, you will need to follow up with customers more frequently so they don’t forget to reorder before they run out of product.

Do the customers already use something similar?

This is another consideration that is not a deal-breaker but affects how you market the products. If you are asking your customers to change their lifestyle in order to use your product—for example, a fitness product—you will need to offer repeated encouragement. If you are asking your customer to use a product that is not intuitive—for example, essential oils—you will need to educate her on the product. Depending on how different or new the product is for your customer, you may be spending a lot of time offering support.

Is the business online, in person, or both?

There are pros and cons to all of these options, so you will need to know how each one affects you. If the business is strictly online, you will need to educate yourself on marketing online using social media, messaging apps, and video software. The benefits to an online business include working from home instead of hosting parties or manning booths. It also cuts down on the amount of inventory or demo products you need.

If the business is in person, you get to be around people; they get to see, touch, and smell the products; and, if you carry inventory, they don’t have to wait for shipping. The downside is traveling with your products, set up and breakdown time, and the inevitable party where no one purchases anything. You may also need to deliver or ship products after the parties if your company doesn’t ship directly to the customer.

The best of both worlds is when you can work the business online and/or in person. You can choose which you prefer and play to your strengths and your season of life. So before you decide to join a company, find out what your options are.

Could you surpass your up-line?

One of the biggest objections I hear about network marketing is the fear of a pyramid scheme. One easy way to know that you are not signing up for a pyramid scheme is to see if you can surpass your up-line or sponsor in income and/or rank.

While we are on this topic, I recommend that you look up the term “pyramid scheme” to set your mind at ease. A pyramid scheme is illegal, so if you have friends accusing you of joining one, you might gently recommend they educate themselves before throwing around the accusation.

Are your goals in line?

I have learned from experience that my business goes much better when my goals are in line with the company, my team, and the products. Do some research into the company and find out what is important to the founders/CEO. Why did they choose network marketing instead of traditional retail sales?

It is important to be part of a team that helps you grow your business in a way that feels good to you. I’ve been part of teams that used sleazy sales tactics, and I’ve been part of teams that taught healthy sales philosophies. It made a huge difference when I was promoting my business!

Do you believe in the products? It is very difficult to sell products you don’t believe in or you don’t personally use. If you can’t use the products, you probably shouldn’t be selling them.

Network marketing is definitely a viable business, but not every network marketing company will be a good fit for you. Answering these questions will help you figure that out.

For Further Reading:

Is Network Marketing a Viable Business Model?

by Kelli Garms | Jan 4, 2021 | Business

My husband, Mark, and I have wanted to own a business since before we were married. We would pass empty storefronts and daydream about the best business for that space. In 2011, God saw fit to put all of the pieces in place for our dream to become a reality.

Since our business is a brick-and-mortar (meaning a physical building), no one has ever questioned its legitimacy. We’ve never had to defend our choice or convince anyone that we are “real business owners.” The same cannot be said of my network marketing business. Since I consider myself to be a savvy businesswoman, it has never made sense to me that I have this struggle. I want to compare our brick-and-mortar business model to a network marketing business model so you can understand why it is absolutely a viable business.

(If you’re wondering what this has to do with my normal content, check out this blog post from 2018.)

Why Network Marketing Is a Viable Business Model

When we started our business, it cost us more than $100,000 just to open the doors. We had to pay for our equipment, our building, our utilities, our products, etc. This led to a lot of debt. Most network marketing companies, however, let you “open your doors” for less than $1000, most for far less than that. The company I joined has starter packs for as low as $199. There is no other industry where you can start a business for such a small investment.
Each month, we have to make enough money to cover our overhead costs before we turn a profit. Our monthly costs include our building, utilities, insurance, salaries, etc. For a network marketing business, there is no overhead. You can work from your couch or the park. As long as you have an internet connection, your business can thrive.
In our business, we only make money when the doors are open and when we have a customer in the shop. If our doors are open and our lights are on, but there aren’t any customers, our business is costing us money instead of making us money. In my network marketing business, I can wake up to find that I’ve made money. I can choose to focus on only those activities that bring in sales from current or new customers. I can create content once that brings in customers over and over again.
In any brick-n-mortar business, the average is 5 years before you make a profit. Remember the debt we incurred to open our doors? That coupled with the cost of overhead makes it difficult to make a profit. And 5 years is the average, which means there are some businesses that take much longer. In a network marketing business, you can turn a profit very quickly. In the business I do, you can turn a profit in your first weekend!

Hobby vs. Business

So you might be asking, “then why do so many people ‘fail’ at network marketing?”

It boils down to treating the network marketing business like a hobby instead of a business.

One of the things we have to do in our brick-and-mortar is to let people know we are here. We have to talk about the business and the products. We have to put feet to the ground and go places where our ideal customers hang out. In your network marketing business, you have to share, and you have to share often! You can’t keep it to yourself and expect people to come to you. This is why it is so important that you believe in the products you are selling. When you believe in the products, you’re excited to talk about them.

Another thing we have to do if we want to succeed in our business is to show up! When we talk about “time freedom” in our network marketing business, it means that we can work fewer hours, and we get to decide which hours we will work, but we still have to work. So often, we believe the lie that we don’t have to work and we can still get paid. Schedule your hours and show up for them just as if you had a boss looking over your shoulder. This can be flexible, but it still has to happen.

If you’ve been looking for a way to create something for yourself and your family as we stare into an uncertain future, I would love to tell you about the company I chose. Click here to check it out, or send me an email at kelli@kelligarms.com to ask me your questions.