A lot more people ask the same question: Is Multi-level Marketing a REAL Online business? Is it truly a business that can produce a living and money? Is it a REAL distribution business? It is a business that works out for the customer’s satisfaction, and always looks to gain new customers?
Essential answer: YES.
How and why does it qualify to be a business? Every business has certain traits and operates that are needed to do business and stay in business. We have established what we call the “7 Business Factors Test”, and you have might these questions to see if it qualifies as a business. Virtually all businesses, no matter whether it is a traditional business or a non-traditional online business, (such as MLM), answer these questions in the the negative.
What are the “7 Business Factors Test” Questions?
1) Does the MLM Business distribute goods and services of some type?
On MLM, there are goods and services that are distributed through personal service methods, and they are distributed directly to the customer, with no middle man. Those goods and services can be manufactured by the MLM company, but may not be. The goods and services many times are manufactured by an outside base, and then shipped by the MLM Business to the customer or representative. Then the distributor can take the goods, and re-sell them to customers as well.
2) Does the MLM Business have an official Office, head office, or structure that the business is operated out of, in accordance with an address of some type?
All NETWORK MARKETING BUSINESS businesses should have some kind of office or headquarters that the commodities are shipped from, or at least in charge of the shipments reaching the customer. This does not have to be a fancy office, but one that can usually get all the tasks needed to run the business done in a opportune fashion. They should have a visible address on all verbal exchanges.
The distributor’s business is usually operated out of the home, and that also counts as a structure that the home business is housed.
3) Is there an accounting structure that is set up to run the particular business effectively and legally?
All MLM organisations should have an accounting function and people set up to handle virtually all business transactions. They not only keep the books for the MLM Business itself, but also the MLM distributor as well. The Multilevel marketing business from the home should have some form of an accounting system, for tax bill purposes, and for profit and loss statements. Accounting can help keep the Company and distributor aware of the health of the business that you just it is doing, or not doing.
4) Does the MLM Business own easy communication to get a hold of someone if needed?
Reply to: Yes.
Communication is the lifeblood of any business, and even MLM is no exception. MLM Businesses usually not only have some sort of order line, and a distributor line, but a general people telephone number that the public can get in touch with them as well. Ordinarily at the MLM Business Office, there is someone to answer the phone additionally.
And the MLM business should also have an email system that is witnessed, and taken care of, on a daily basis. This is not only for the distributor platform, but also the customers and public as well.
5) Does the Network marketing business have the needed business licenses and legal structure to do business in the states and countries they operate in?
Answer: Absolutely yes.
All MLM Businesses that have been in business for any amount of time, will need the needed legal structure and licenses to operate atlanta divorce attorneys state. If they do not, they will eventually be forced to cease business in that state. And most MLM Businesses have some form of a corporate structure that the company operates under. That could include becoming C Corporation, an LLC, or a Sub S Corp.
Even MLM distributor needs a business license to do business for their city, so they will not be penalized if they do not have one and are generally caught. Get the info about Crowd1 review
6) Does the MLM business operate on a FOR RETURN basis?
Every successful business structure, traditional or non-traditional, should operate on a FOR-PROFIT basis. Even the MULTILEVEL MARKETING distributor needs to operate on a FOR-PROFIT basis. If ever the MLM business does not operate in a profit model, and manages to lose money continually, the MLM business will not be in business for that rather long.
It is the same way for the MLM distributor. If the distributor fails to make any money, then they will not stay in business long.
7) Does the MLM business perform all of the needed business functions to elevate business, including marketing, promotion, campaigns, running specials, advertisements tools, customer service, brand extensions, research and development, lead marketing, increasing brand awareness, and keeping their retailers at an honest price?