Sunday, February 10, 2008

Is Your Home Based Marketing Network Leading You To Failure?

Copyright © Michael Laleye

Many companies have gone out of business due to lack of planning and not enough potential customers to purchase their wares. This may be the situation that you encounter if you decide to supplement your income with a marketing network type of job. When you are considering this type of employment, remember to do research and remember that some types of marketing networks are fraudulent.

Some multi-level marketing groups are destined for failure from the very beginning. This may be true despite the type of product that is being sold. These types of multi-level networking businesses pay an employee a minimum amount of money for each recruit that they get to join the company. They also may receive funds for each recruit that their recruits are able to add to the company. The goal becomes the ability to add as many recruits as possible, regardless of the number of products that are being sold. Unfortunately, if products are not being sold, the money that the company makes becomes smaller and the amount of money being given out for the large number of recruits continues to increase. A company can put itself out of business quickly if they are unable to regain a high amount of product sales.

When most companies enter into business, they are aware of the laws of supply and demand for the products that they have decided to sell. With most products there are only a limited number of customers interested in a product. Once those clients have received or purchased the product, you will need to convince others that they are in need of your products or your company will face certain failure. With many multi-level networks, the problem starts with the fact that there is not a person on the staff that keeps track of the amount of products that are sold versus the number of employees. Often, you have far too many salespeople trying to sell too few products to too few customers.

To ensure that your company remains in business there are several things that you can do. The first is to research a variety of products that you are interested in selling. It is important to sell products that a large number of potential clients would find useful in their everyday lives. If you find once you have starter your company that there are not enough clients looking for your type of products, consider adding more products or selling products that are closely related to those that you already sell. Having a guaranteed client base will help to bring in profits. Advertising locally or online can also help to bring in new clients. Another option that you may not have considered is to keep a cap on the number of recruits that are employed through the company. This may limit the amount of work that is done at one time, but you will ensure that you do not have too many salespeople and not enough customers. Remember that you want to bring in a profit but not put yourself out of business.

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