Network Marketing Reports #2
How to choose your Network Marketing Companies to join ?
Many distributors become frustrated with the Network Marketing industry because of the wrong choice of company. This is sad because there is nothing wrong with the overall Network Marketing industry. It is
merely the wrong choice of companies.
Remember that you are looking for a company to partner with for long term. It is your future we are talking about. It takes time and effort to build your organization and business. It has to be a long term commitment. You do not have the time to waste, jumping from one company to another.
Here are some of the things that you should take into consideration when selecting a Network Marketing company to join.
1. Products
This is the pillar of the business. If the company does not have great products, the compensation plan will not be able to pull the company through. Guidelines for great products are as follows:
Products that is inelastic. The products must be needed all year round and not subject to seasonal, environmental or other changes.
Products that serves the world. This refers to products that are needed by every one and of all ages.
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Products that is unique and not easily copied.
Products that are effective and illustrative so that they can give you immediate sales just by showing demos
2. Management
We have to find out the background of the company. This is important because the company is our Partner. We are representing the company!
Make sure that the management team is experienced in the field of Network marketing. They need to know the Network Marketing business and feel what the distributors feel. They should have excellent track records and are people of integrity and trustworthiness. Most importantly they must be people who care about the
success of others.
3. Compensation Plan
The compensation plan must be fair. It must be able to take care of the grass root distributors. Most compensation plan is top heavy. What it means is that the top achievers are well paid but the new distributors are paid lowly. This causes the attrition rate to be very high. Some as high as
80%! Well, many of the new distributors will quit if they cannot earn enough income to cover their running expenses and the cost of products for personal usage.
The compensation plan must allow new distributors to earn reasonable income when they put in the time and effort. The compensation plan should pay based on the effort put in rather than when they join or where a distributor is placed in the organization.
Finally the compensation plan must be global and seamless. This means that a distributor is allowed to conduct business world wide with one single ID. This is possible with the use of the Internet. Most of the older network marketing companies will not have this feature.
4. Timing
I believe that timing is crucial in any business decision. It is important to join at the right time. Many companies will not last 3 years. Those that last may not hit critical mass because of quality of products, compensation plan, etc.
It is important to be able to identify a company that is more than 3 years old and have just hit critical mass.
A company that has been around for more than 20 years have stability but it may no longer have the first mover advantage that new companies have. Stability is good but the opportunity for fast paced growth is over!
These are the major ingredients that you need to consider when choosing the right company to join.
In later session I’ll reveal to you what I came across after doing my research and in depth studies. I have
actually identified a company that fulfills all these qualities.
