By Rebekah Sandhu
You need to do a careful evaluation before choosing a network marketing company to join. Too many people make the mistake of jumping aboard the latest 'HOT' deal, only to find out that the sales pitch was better than the reality. They then drop out and move on to the next 'HOT' deal. You can NEVER make a decent living in network marketing by doing this. Your best bet is to pick a good company the first time, build your business once, and have it pay you forever. So, how do you sort through the thousands of network marketing companies and find the one that is right for you? Carefully consider the questions below, determine their importance to you, and then choose a company that fits your personality, your passions and your lifestyle.
- How old is the company?
Out of the thousands of network marketing companies, only about 40 are over 5 years old. 95% of all network marketing companies go out of business in the first 2 years. A start up company may seem like a great ground-floor opportunity but you must realize that there are substantial risks associated with joining a network marketing start up.
- What kind of marketing plan does the company have?
The company can have the best products in the world, but if the pay plan won 't compensate you for your efforts, you won't be successful. There are several different types of marketing plans. The most common are the binary, unilevel, matrix and breakaway. There are also a few companies that have created unique plans that combine the strengths of many of the traditional plans without the weaknesses. You should study the plans carefully and determine which one will provide you the most lucrative income based on how you will build your business.
¨ Unilevel and binary plans are very popular with companies that focus on the part-time network marketer because they make it easy to make small amounts of money right away. They are based around a model that shows that the average person will only recruit 1-2 people. Be wary of binary plans that require you to balance your sides, especially on a weekly basis, you could end up missing out on huge commissions if one of your lines takes off.
¨ Matrix plans have fallen somewhat out of favor because it is very difficult to make them work. Too many people get in hoping that a heavy-hitter above them will fill in the matrix for them. Don't count on someone else's efforts to make you rich!
¨ The breakaway is the full-timers plan and provides the ability for a network marketer to make substantial amounts of income. Payout in the breakaway plans requires developed groups, however, and it can be difficult for a newcomer to come in and make money quickly so they often drop out.
- How is the company financed?
Find out how much debt the network marketing company you are considering is carrying. You need to be sure that your company will have the financial resources to pay your commission checks for many years to come.
- How is the company managed?
You will find some companies that are privately held and others that are publicly traded. It really doesn't matter as long as the management team is experienced and is dedicated to the success of the company and the individual distributors.
- What is the product line?
Look for a company that carries a broad line of unique, consumable products. A broad product line means that you, your customers, and your downline distributors will have many products to choose from. It is best if these are products that you use anyway so that you can simply transfer your buying from the grocery store to 'your' store. Unique products are important because they will help you maintain your customers and distributors once you have invested the initial effort of finding them. A consumable product is the most important element because that means your market never diminishes, people need to continue to buy every month. If you have found a company whose products you will buy regardless of the income opportunity, then you should really consider joining that company because you will be representing a product line that you believe in.
- If the company sells products, do they manufacture their own products?
Only companies that manufacture their own products can guarantee that their products are and will remain unique. They also can closely monitor quality control to ensure that you and your customers always get what you expect. Look for a company with a state of the art manufacturing facility with plenty of capacity to meet demand.
- How is the timing?
Look for a company that is growing. This will benefit you because it shows that their products are capitalizing on market trends and that a lot of new people are interested in the opportunity.
- Where is the company doing business?
Many network marketing companies do business internationally. This ability to expand outside of the U.S. can provide a substantial opportunity.
- What kinds of company services are provided?
Look for a company that handles distributor sign-up and ordering via phone, fax or the internet so that you don't have to worry about a lot of paperwork. Do NOT get involved with a company that requires you to stock a lot of product. Most reputable network marketing companies will now ship directly to your customers and even handle credit card transactions for you.
- What kind of duplication system is in place?
Some network marketing companies require meetings and in-home presentations, others do business solely through the internet and then there are many things in between. Make sure the company you are considering has a duplication system in place that you are comfortable working with. Any company you are considering should have professional quality literature, audios and videos at affordable prices as well as a corporate web-site.
- What kinds of bonuses are available?
Bonuses are not crucial to your success, but they can be great motivators. Companies provide all kinds of bonuses like cars, jewelry, vacations and house payments. Cars are especially popular because they are a great conversation piece and mobile advertisement. These bonuses can be fairly substantial so they should not be ignored when making a decision.
Rebekah Sandhu
Independent Neways Distributor
rs@itsup2you.com
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