One Question To Ask Before You Join A Multi-Level Marketing Network

    

English: A simple binary tree diagram illustrating the hierarchical structure of a multi-level marketing compensation plan. (Photo credit: Wikipedia)

Anyone following closely the Ackman-Herbalife (NYSE:HLF) dispute cannot help but be confused about Herbalife’s business organization—a multilevel marketing organization whereby individual customer-distributors enlist other customer-distributors to work for them, in a pyramid style organization.


One of the things Ackman finds fault with this model is that very few people make it to the top of the pyramid reaping off a huge pay-off, while the vast majority is losing money. But isn’t the case with most business ventures?


The problem, I believe, isn’t with the very nature of a multi-level marketing network, but as to whether people understand that nature: The difference between participating in the network as customers, end up buying products at inflated price (to pay for the commissions of the people who join the network earlier); and as an entrepreneur, developing a business that markets the network products, both directly and indirectly. This means that before you join a multi-level marketing organization network, you must ask a simple question: Am I prepared to build a business?
As I did write in previous pieces, building a business means six things:


1. Have a Vision
Have a clear vision, a set of ultimate goals you want to reach, an idea of the contribution you want to make to people’s lives; and a set of basic values to rule your behavior and your relations in pursuing these goals. Making money should be the end, not the cause of the business you want to be in.


2. Share the Vision
You cannot reach your vision alone. You must share it with others who are willing to walk down the same path as you. Some will walk at the same pace, staying next to you. Others will walk at a slower pace than you and be left behind. And a third group will walk faster than you and get ahead of you. But you should all remember that you walk towards the same destination.


3. Execute
Keep your sight on the dream, the business you want to build, and get the job done. Develop a network, a form of collective entrepreneurship that allows you and your associates to nurture and grow your business.








4. Lead by Inspiration
Never become complacent with what you have accomplished in the past. Always persuade and inspire your associates, serve as their role model and mentor to help them overcome the many hurdles of building a successful business.


5. Train and Support
Constantly train and support your associates. Train them on new products and new technologies, and on emerging trends. Support them with state-of-the art logistics and business practices that create the right mid-set, the morale for remaining focused and executing the business.


6. Share the risks and rewards with those who are prepared to share your dream and contribute resources and energy to it.
The bottom line: As is the case in every business organization, you cannot succeed unless you believe in the cause of the organization; you pour your heart and soul in it.  Are you prepared for that?