Most people ignore one or more of the 5 critical keys in choosing a network marketing company or opportunity and ask themselves why they failed to make profits or achieve financial freedom.
You may be inclined to join the someone close to you and their NWM company but we strongly suggest that you do your own research before you get involved to save you time, money, and possible heartache.
Basically here are the top 5 things to look for in a network marketing company:
Although it’s true that you create your own success, it makes perfect sense to work with a company that will still be around after you’ve invested so much of your blood, sweat & tears, right?
See if the company you’re joining is; (a) financially stable and has been around for some time. (we’d say at least 5 years) so your group-building efforts will not go to waste. (Most NWM companies never make it to their 5th birthday!) Too many network marketing companies in the world have come and gone over the years. Aren’t you wondering why? One reason may be due to legal problems (because they’re illegal!?) and another reason may be the owners just couldn’t keep the business running, just like traditional businesses. You don’t want to be in those distributors’ positions when that happens.
We would also look into the; (b) experience of the owners and management team. Who are they? What’s their mission? Are they people with INTEGRITY? What’s their track record, past experience?
Look into the heart of the company if it’s really interested in educating YOU to be a business leader with personal development programs.
Check also if the company has (c) international or global presence. Even though you have no plans of going international today, you don’t want to limit the growth of your network in the future.
If someone in your downline wants to grow their business internationally, for example, he/she can still continue the business IF your network marketing company has an operations in that other country.
Compensation plans vary from one network marketing company to another.
Review the compensation plan and make sure that you are comfortable with how company pays out their commissions.
Ask to see an Income Disclosure statement to see if their plan is paying out.
A good question to ask yourself would be, “Can I still make money if my network just consumes the products and does not recruit anybody?” Answer should be “YES;” otherwise, run away as fast as you can!
Products must be of value but not overpriced and preferably with a money-back guarantee. Are the products consumable? Since the business is about long-lasting residual income, the products have to be consumable and of high quality. This leads to repeat purchases by customers, month after month and year after year. It’s not just about making a big one-time sale or commission.
Check also if the products are patented and exclusive to the company. There are very good imitators out there. You don’t want to see your products displayed at department stores or at any point, do you?
Consumers MUST also have a compelling reason to buy from your network marketing company, not just to participate in the money-making plan. For example, ask yourself, “Do people need to buy phone cards from me without joining the compensation plan?” Answer would be “No,” because people can buy the same phone cards in stores.
If product being sold has no real world VALUE and/or is overpriced, the company is more likely a pyramiding scheme, wolves in sheep’s clothing so to speak. Beware!
Needless to say, you have to use the products. These should be products that you are comfortable sharing with close friends and family & that you LOVE yourself.
This is my favorite part in network marketing – free education! ROBERT KIYOSAKI wrote in his book The Business School that the number one hidden value of network marketing is the life-changing business education.
Unlike in formal business schools where instructors do not necessarily have businesses of their own, network marketing is the best free business school where trainers actually talk of their real-life experience.
Network marketing leaders teach success attitudes, leadership, people skills, overcoming fears, goal-setting, communication skills, money skills, and the like.
See if your prospective company provides network marketing training for members or you might be left out in the cold.
TRAINING & SUPPORT
You could have everything else perfectly in line: Your Products, the Company, the Comp Plan but be setting yourself up for failure if you are out there all by yourself banging your head up against the wall trying to figure everything out. Make sure that the company has credible, reliable proven training and support systems. It must be PROVEN, RELIABLE, FREE, SIMPLE, & EASY TO ACCESS 24/7!