There are definitely more than ten questions you need to be asking before you join Herbalife as a distributor, but I’m going to focus on the ten that I feel are most important and these can be applied at any potential network marketing business opportunity you are looking into. I don’t intend to answer the questions, that is something you need to discuss with the person who has introduced the opportunity to you. I want you to be well informed before jumping in because too many people join a business and then realize it wasn’t a good fit for them. Make sure you are aware of these things!
Question 1 – Is there an actual product that can be sold to the general public? MLM companies are heavily scrutinized by people and the government to make sure they are not illegal pyramid schemes. There has to be a product, and the product has to be sold to customers. If only the distributors of the company are buying product, you need to be looking elsewhere for a business opportunity.
Question 2 – Do you get a bonus for recruiting people? Obviously when we look at network marketing you have to bring people into your business to actually make the big bucks. If you didn’t you would really be a glorified salesman for the company rather than a business owner. Question 2 is tricky because you are obviously going to get paid for bringing people into the company, but it’s not the act of bringing them in that gets you paid, it’s the sale of a product. If you get paid for having someone signup in your business, you need to look elsewhere!
Question 3 – Who owns the company, and what is their track record? The leaders of your company need to know what they are doing. If they aren’t good business people, your success could be short lived. You wouldn’t want to build a big organization for yourself only to have the company shut down over a shady business deal or something that was out of your control. By finding out the answer to this question, you can really get started with a good company.
Question 4 – Do the owners of the company have specific experience with MLM? You might not think this is a big deal, but it truly is. I have personal experience with this. The last network marketing company that I was involved with was doing very well. I build up a substantial business only to have them shut down their MLM operations. They gave all the distributors 30 days notice and said have a nice life, we will no longer be paying you. Out of nowhere this company took away a primary source of income because the leaders of the company were from corporate America and didn’t know the ins and outs of MLM. It’s a very different world.
Question 5 – Do they have sufficient capital? If you company has been around for a while you may not even need to ask this. For example, a company like Herbalife really isn’t going anywhere. This question truly needs to be addressed on start ups. If you are looking at a start up company, did they start with 100% debt and will they ever get out of that debt, or will they be shut down in a year?
Question 6 – How much does it cost to join? I’m guessing that you already know the answer to this question, but I’d like to take it a little further. Remember, when you join a network marketing company you are basically purchasing a business. You get to be your own boss! Herbalife has been around for a long time and it obviously costs to join. That’s not a bad thing. There are actually companies out there claiming that you can join for free and be making thousands of dollars in a few months. I just don’t see that as a possibility. In order to be joining a successful company you need to expect some upfront cost. Just imagine if you were starting your own business from scratch.
Question 7 – Do you have to buy a minimum amount of product each month to keep your downline? There are some compensation plans out there that require you to purchase a ton of product just to remain active. If you don’t they will flush your downline and you will have to start over. That doesn’t seem fair to me. You can make the decision for yourself, but I would suggest finding out about the companies compensation plan BEFORE you join. It should be clearly posted and easy to read. If it’s not, you may have a problem.
Question 8 – Does the company tell you who they are upfront? If it’s hard to find information about a company, you have a problem! With the way the internet is, if you can’t find something, or all you find is bad publicity, you probably have an issue. Any issue like that and I would talk to the person trying to bring you in, and find out what they have to say!
Question 9 – Is the compensation plan easy to read and understand? If it’s not you may be missing some key information. Again, this is something you will want to discuss in great detail with your sponsor BEFORE you join the company!
Question 10 – Does the company provide you with the training and marketing you need to succeed? For most companies, the answer to this question is NO. You have to create your own success and once you join, it’s your business. You have to market it yourself, you have to sell it yourself, and you have to build it yourself. It can be done, but you may need to plug yourself into a 3rd party marketing system.
If you were able to get questions 1 through 9 answered to your satisfaction, you can feel confident that you are getting involved with a good company. I wish you all the success in the world! If there were any discrepancies, I would suggest running in the other direction! Ultimately it’s up to you. Question 10 really is all up to you! If you want to succeed in MLM you need a business coach and duplicateable system to help you reach your goals. You must learn how to market your business on the internet as well as offline. You need to build a list and brand yourself. All of that is outside the scope of this article, but be sure to follow the information at the bottom of this article if you have questions.