How to Choose a Network Company
How to Choose a Network Company and What Makes a Great Opportunity?
#1 - Low-Unit Cost
When picking a Network Company to represent, study carefully its product or Products. Is the unit cost competitive to similar products offered through other Networks and through normal Marketing methods.
#2 - Highly Consumable
To have a successful residual income, the product needs to be consumable. This simply means people order the product month after month, and you continue to receive commissions based on their purchases. Study carefully the Companies retention rate. If you have to replace 50-60% of your business every couple of months, you will have a hard time developing a High level Residual Income
#3 - Uniqueness of Product
Look for a Product or Product that is not in everyone's Sales Kit. You want the Product to possess certain exclusivity, a product that can not be purchased at the Corner market or Box Store. Is the product patented or are their manufacturing nuances that make it difficult for the total product to be easily Duplicated.
#4 - Exemplary Management Team
In order to feel confident of the staying Power of the Company and Product you chose, you need to study and understand the business Structure and the Management Team. Is management familiar with the uniqueness of Network Marketing or are they comprised of Trophy executives hired for their Name recognition or Notoriety in un-related fields. A Company with staying power needs a team who has experience in international, multi-million dollar businesses. People who have done this before, and are knowledgeable in multiple areas.
#5 - Profits for the Company & Distributors
Study the financial position of the Company. Be cautious if figures are not available.
What is the Company debt ratio? Have they changed marketing plans several times?
Is the Compensation Plan easy to understand? Is there a big discrepancy between actual Sales Dollar Volume and Credited Volume? Is 100% of commission percentage actually paid, or is there a lot of breakage? Look for Companies that pay 100% of stated commission and are on sound financial footing. Also be wary of Plans that require large up-front costs, and/or require carrying large Inventory
#6 - Timing, Timing, Timing
Is the Product and/or concept, in tune with Current Trends or better yet, are they a little ahead of the curve. Are you choosing a business that is on the cutting edge of a growing Market? Think of the rapidly expanding Global position and where can this Company fit in the Global Economy.
#7 - Presentation and Duplicability
Can the presentation be made quickly, easily and understandably? The secret in Duplication is that almost anyone, with strong desire to succeed, can be successful. Is the system cross generational? Is it Non-gender specific? Are the requirements for Start-up easily affordable to large cross section of the Global population?
If the Company or Companies can stand up to 6-7 of these criteria, you have a very good chance for high degree of Success. If only 4-5 apply, I guarantee you will work too hard to gain too little, and if only 3 or less fit, run for the hills and close your check book.
Success in Network Marketing needs the above criteria for the Product and Company;
But more importantly it needs the individual to be willing to change their lifestyle and thought process.
We will discuss that in a future Article.
Chuck & Shirley Bartok
Team Health2Wealth
530-419-0321 24/7 message
www.cjbart.gomangosteen.net
#1 - Low-Unit Cost
When picking a Network Company to represent, study carefully its product or Products. Is the unit cost competitive to similar products offered through other Networks and through normal Marketing methods.
#2 - Highly Consumable
To have a successful residual income, the product needs to be consumable. This simply means people order the product month after month, and you continue to receive commissions based on their purchases. Study carefully the Companies retention rate. If you have to replace 50-60% of your business every couple of months, you will have a hard time developing a High level Residual Income
#3 - Uniqueness of Product
Look for a Product or Product that is not in everyone's Sales Kit. You want the Product to possess certain exclusivity, a product that can not be purchased at the Corner market or Box Store. Is the product patented or are their manufacturing nuances that make it difficult for the total product to be easily Duplicated.
#4 - Exemplary Management Team
In order to feel confident of the staying Power of the Company and Product you chose, you need to study and understand the business Structure and the Management Team. Is management familiar with the uniqueness of Network Marketing or are they comprised of Trophy executives hired for their Name recognition or Notoriety in un-related fields. A Company with staying power needs a team who has experience in international, multi-million dollar businesses. People who have done this before, and are knowledgeable in multiple areas.
#5 - Profits for the Company & Distributors
Study the financial position of the Company. Be cautious if figures are not available.
What is the Company debt ratio? Have they changed marketing plans several times?
Is the Compensation Plan easy to understand? Is there a big discrepancy between actual Sales Dollar Volume and Credited Volume? Is 100% of commission percentage actually paid, or is there a lot of breakage? Look for Companies that pay 100% of stated commission and are on sound financial footing. Also be wary of Plans that require large up-front costs, and/or require carrying large Inventory
#6 - Timing, Timing, Timing
Is the Product and/or concept, in tune with Current Trends or better yet, are they a little ahead of the curve. Are you choosing a business that is on the cutting edge of a growing Market? Think of the rapidly expanding Global position and where can this Company fit in the Global Economy.
#7 - Presentation and Duplicability
Can the presentation be made quickly, easily and understandably? The secret in Duplication is that almost anyone, with strong desire to succeed, can be successful. Is the system cross generational? Is it Non-gender specific? Are the requirements for Start-up easily affordable to large cross section of the Global population?
If the Company or Companies can stand up to 6-7 of these criteria, you have a very good chance for high degree of Success. If only 4-5 apply, I guarantee you will work too hard to gain too little, and if only 3 or less fit, run for the hills and close your check book.
Success in Network Marketing needs the above criteria for the Product and Company;
But more importantly it needs the individual to be willing to change their lifestyle and thought process.
We will discuss that in a future Article.
Chuck & Shirley Bartok
Team Health2Wealth
530-419-0321 24/7 message
www.cjbart.gomangosteen.net
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Comments (5)
Chuck Bartok10
Veteran Entrepreneur now Sharing
Inger,
I appreciate your Comments.
There are a few good opportunities available today..
But we still caution everyone not to be overwhelmed
with grandiose results..
Those are very attainable by thios who ARE WILLING to apply MASSIVE ACTION and sacrifice for a few years in order to enjoy a Lifestyle envied by most.
Inger V. Johannessen...7
eMarketing, Web Site Technology
Hello Chuck,
First let me thank you for your welcome message.
Secondly, the advice you give here is highly important. We should all look for a company that fits all of the 7 criteria you have listed.
I feel very fortunate that I have found such a company myself, that fits all 7 of the listed criteria. Very fortunate indeed.
There are quite many companies out there, so one should be careful what one chooses.
Thank you for good information.
Warmly, Inger
Chuck Bartok10
Veteran Entrepreneur now Sharing
Thank you both for the Kind words.
If you are involved in an MLM Company I encourage you to join
Distributor Rights Association DRA
http://www.mlm-dra.com/
There are many fine Companies, but you must be aware of Terms and Conditions........remmember they are written for THEIR benefit
It is not fun to have yopur Income arbitraily taken away
Not Here8
just want my account deleted
Hello Chuck
All in all, looks like pretty good advice to me. I would like to caution everyone to beware of products that are too unique though, after all, if you have found something that no one else has, can there be any demand for it? I guess that where you want to look for that "certain exclusivity". I also like to find a company with somewhat of a proven track record(timing). If you are betting on a brand new company, you better hope they are here to stay.
Thanks for reading!
Ga
Jenny Stewart11
Hi Chuck and Shirley
Thanks for a great and very informative article. I t should be compulsory reading for anyone about to start out on a new business venture
Jenny