FAQ

When exploring work-from-home and online entrepreneurship opportunities, it's inevitable to have countless questions.  Heck, I'm always discovering new things myself.  Questions show that you are willing to learn.  I believe learning should never stop so keep the questions going!

Typically, potential sponsors and mentors may not want to answer questions.  They may feel that it is a waste of their time or that you do not take your venture seriously enough.  Well, here are some answers that I hope will help you in your quest for success!

If there are any questions I may have missed, please leave them in the comments.


Q.  Is MCA (Motor Club of America) a pyramid scheme?

A.  Absolutely not!  In this day and age, pyramid schemes or any kind of scam get shut down very quickly by the FTC, FBI, or whichever organization takes the case, depending on the scale and scope of the crimes perpetuated by the organization and it's affiliates.  A business cannot be a pyramid scheme if real products and services are exchanged for money.  If you suspect MCA or any work-from-home opportunity is a potential scam, my blog post on identifying the signs of a pyramid or ponzi scheme is a good start.

Q.  How easy can it possibly be?

A.  No business is easy.  If there really was an easy way to make money without breaking any laws or cheating others, then chances are we would not hear about it because most would want to hoard the wealth for themselves.  Successful entrepreneurs must embrace persistence and courage to truly see the fruit of their labors.  Patience is also of the utmost importance.  Temper expectations and avoid desperate sales tactics!

Q.  Is the income potential for MLM business models truly unlimited?

A.  As opposed to a traditional job where you typically get paid a flat hourly rate or salary, MLM or network marketing businesses pay on a performance basis, much like commission-only sales jobs work.  As such, chargebacks (lost commission due to customers canceling/returning products) are an unavoidable reality.  The key distinction is that any independent associate becomes a referral/sales agent while being able to promote himself or herself to district/regional manager..  Or better.  In essence.  The income potential relies heavily on retention, consistent activity, and properly on-boarding team members and customers alike.  You truly get out what you put in.

Q.  What legal pitfalls and risks should I watch out for most?

A.  Most of the supposed success stories in any network or affiliate marketing business will tell you that you essentially have to spam and use every social network, advertising platform, and mass marketing tool possible.  This lends to what some would call a "revolving door business", where you constantly have to make sales to offset losses.  To avoid this and related issues, be sure to never make guarantees (don't oversell), always follow up with customers and team members (build up retention and focus on customer satisfaction), and make it clear that you and other agents are not employees or representatives of the company you have essentially franchised under.  If you conduct your business honestly and do not try to explode your business beyond what is sustainable, you will keep your colleagues and customers happy, while preserving your credibility, personal brand, and corporate integrity.

Q.  Why is my sponsor not helping me with my network marketing business?

A.  As I touched upon previously, sponsors and mentors may feel that those with many questions are not serious, simply because they think that the answers are right in front of them or "it's so easy".  The reality is that some people are more independent self-starters while others are more team players.  A good sponsor realizes that there needs to be a balance and proper expectations set; after all, if they help you, they help themselves out as well.  Encourage your sponsor to create win-win-win scenarios; otherwise, you reserve the right to switch to another downline/organization.

Q.  Should I focus on sales (product) or recruiting (business opportunity)?

A.  This is another area of contention for many network and affiliate marketers alike.  The reality is that, while everyone may want to make money, only a select few are cut out for entrepreneurship.  Focus on the product and it's benefits.  Share testimonials, not just features and mere selling points/fact sheets.  If you can't get excited about the product, the business opportunity is less appealing to prospects and you will be less effective when sharing with others.  Also, do not require your marketers to be subscribers or buy product from you (which is illegal, BTW); instead, encourage them to do it so that they can become the product of the product.  The most successful salespeople are the ones who share first-hand accounts of wonderful products and tell great, authentic stories.  In short, [legitimate] businesses make money through sales so focus on the product first, then the business opportunity.

Q.  What qualifications should a referral agent or affiliate marketer have?

A.  There are many personalities and skill sets that make for a successful referral agent, affiliate, or network marketer but the #1 thing would have to be persistence.  Share and develop quality content, keeping a balance between fun, valuable, and sales copy/material.  You don't want to spam so maintain a diversity of communications and spend an equal, if not greater, amount of time following up with your contacts and building relationships.  Being outgoing (i.e. making a friend everywhere you go), approachable, credible, and authentic is crucial as well.  It helps to have a grasp on traditional or online marketing methods, especially social networks, blogging, and e-mail lists.  Play up your strengths and invest in personal development.

Q.  Should I start a blog?

A.  Blogs are a powerful tool because they can be used in both push/outbound and pull/inbound marketing efforts; in other words, they can be used as "leave behind tools" (i.e. business cards and brochures) while bringing customers and business partners to you.  That said, blogging is not for everyone.  While you don't need to be a brilliant writer, it helps if you have a good command over the English language.  Most importantly, if you can't keep to at least a somewhat regular update schedule, blogging can be more of a time killer, an exercise in futility, than a valuable selling and education tool.  Consider the alternatives first: posting to social networks, e-mail marketing, microblogging/tweeting, and the like to find what is best for you.

Q.  Which social networks and advertising platforms should I use?

A.  This is more a matter of personal preference and habit than it is about what is most effective.  My personal experience has been that people are more responsive via e-mail and Facebook, while blogging takes a much more concerted effort.  To an even greater degree, direct mail and telemarketing are even less effective these days, mainly because most consumers have tuned out, if not blocked, such means.

Q.  Are sweepstakes and contests recommended/legal?

A.  Sweepstakes and contests are a powerful catalyst for increasing your audience and jump-starting your online presence; however, use them with caution.  While there are plenty of free tools such as PunchTab, Rafflecopter, and Giveaway Tools, you always get what you pay for and these platforms do not protect you against legal blowback.  It is also important to note that certain businesses, industries, programs, franchises, and systems do not allow for incentivized traffic.  For example, any organization involved with health/medicine, gambling, financial services, and the like have particularly strong regulations and legal restrictions.  Be sure to consult an attorney or work with an experienced social media/marketing manager that can help you integrate your efforts and get the most out of online promotions.