How to Choose a Network Marketing Company – that is right for you?
There are four main factors to consider when deciding upon a Network Marketing opportunity…
- The Company
- The Products (or Services)
- The Marketing Plan
- The Training Program
Click on any of the points above to read more about each of these factors.
It is vitally important to join a company that is going to be around for the long haul.
So, the following considerations are important…
- Sound management
- Proven track record
- Financially sound – preferably debt free
- Professional corporate image
- Commitment to customers and distributors
- Respected in the Network Marketing Industry.
- Is the company a member of a professional, ethical association such as the Direct Selling Association? (DSA).
By the way – just because a company isn’t a DSA member, doesn’t necessarily mean that the company is not reputable.
It’s just that DSA member companies agree to adhere to a strict code of ethical conduct – so the DSA website is a great place to start your search.
These company’s products or services need to be…
- Effective – products that really work!
- Consumable – a must for repeat business
- Reasonably priced
- Attractively packaged
- Easy to use
- Supported by professional literature
- In strong demand
- In plentiful supply
- Unique in some aspect
Ideally you want to choose a company that offers a range of products or services that you already use. That way, you don’t have to increase your present spending budget to launch your Network Marketing business.
The Marketing Plan
The term ‘Marketing Plan’ (also known as Compensation or Payment Plan) refers to the way in which a NWM Company calculates the bonuses or commissions that it pays to its distributors.
There are many different types or ‘families’ of marketing plans such as, Binary, Breakaway, Matrix, Stair-step and Uni-level – just to name a few.
One could easily get bogged down in ‘analysis paralysis’ when trying to compare the marketing plans of the various companies, because they differ so much. Consequently, most comparisons can be classed as ‘apples to oranges’ instead of ‘apples to apples!’
Most Network Marketers are quite open about their income when talking to someone who they would like to have join their team. If they tell you a figure that sounds extraordinary, don’t be afraid to ask for documented proof – and be a bit wary if they are reluctant to provide such verification.
Membership retention rates are also a handy guide as to the viability of a Company’s marketing plan. If a Company has a high turnover of distributors, it is often a sign that something is inequitable.
People join a network marketing company for one of three reasons:
1. To buy quality products at wholesale prices
This group comprises the majority of people who belong to NWM Companies – perhaps 70-80%. These people are quite happy just to save money by being a member and don’t care if they never receive a bonus cheque.
2. To buy quality products at wholesale prices
– and earn EXTRA INCOME on a PART-TIME basis.
3. To buy quality products at wholesale prices
– and earn SIGNIFICANT INCOME.
The third group would account for less than 10% in numbers of Network Marketers, but would earn more than 80% of the total bonus commissions paid by Companies.
These are the serious Networkers who are at various stages of their careers. Their earnings range from a $1,000 to a $100,000 a month – and even more in some cases.
Whilst this information is mainly about the Business or Income aspect of Network Marketing, the importance of being a regular user and advocate of your Company’s products cannot be over-stated.
Many high-earning Network Marketers were introduced to this business because a caring friend (or maybe even a stranger) introduced them to a product that significantly enhanced the quality of their life.
They decided to pay a small fee to join the Company so they could save money by buying the product at wholesale prices.
After a while they became so passionate about the product that they couldn’t help telling others about it, and ordering it for them on their behalf. Before they knew it they started receiving bonus cheques from the Company without ever realising that they were actually doing Network Marketing.
One of the great things about Networking is that you can introduce people into your business by telling them first of all about your Company’s products – or the Business Opportunity – whichever you feel most comfortable with – or appropriate at the time.
In either case you should learn as much as you can about:
- The Network Marketing Industry
- Your Company and
- Its Products…
- and be a ‘product of the product!’
We’ve drifted off the track a bit as far as the topic of the ‘Marketing Plan’ is concerned, but the above points are well worth noting and this is probably the most appropriate section in which to cover them.
The Training Program
Once a person has digested all the information about the Company, its Products and the Marketing Plan – the two main questions they want answered are usually…
- “Can I do it?” and
- “Who will help me?”
All reputable companies provide regular product and business training sessions as well as a range of literature such as:
- Product Training Manual
- Policy and Procedures
- Facts Sheets
- Promotional Flyers and so on.
In recent times, the advent of Information Technology has enabled even more training options that members can avail themselves to in the comfort of their own homes, such as:
- On-line/Internet Training Programs
- Audio and
- Teleconference Training – just to name a few.
Perhaps the most important training medium is counselling with your sponsor and/or ‘upline’ team members, all of whom have a vested interest in your success. You will build wonderful life-long relationships with some of these people.