Choosing the Right Network Marketing Company is the most important external factor for success in this industry. Most people just do not understand what it takes, and its sad to see so many people taken advantage of because of greed. Every company in this industry wants to and says they will be the next billion dollar giant. Instead of talking about opinion and preferences, lets talk about the real factors of success. Success leaves clues and history shows us what is proven to work, and what does not.The real rockstars in this industry don't need to promote themselves anymore, they have built up such a network of people that know, like, and trust them because of the positiverelationships they have developed. There are a bunch of internet "gurus" out there that are absolutely ruining the message of this industry, its not their fault, they are just trying to make a living, and not realizing the magnitude of their repercussions. Having said that, it can be fairly difficult to actually sit down and talk with one of these guys to get the truth about the industry.Fortunately, I've been blessed with the opportunity to not only rub elbows with but mastermind with the top leaders in the industry. I will do my best to impart my knowledge and wisdom i have gained from these leaders in our industry.7 Irrefutable Principles of a Successful Network Marketing Company
1. Industry Segment - This has become the most intentionally overlooked criteria today when it comes to properly evaluating a network marketing company's true growth potential. There is no consultant in the industry like Jerry Campisi, hes become a legend because when it comes to business, he puts his money where his mouth is. If his advice doesn't bring financial gain, he doesn't feel he deserves it either. He only gets paid, AFTER a company has success with his consultation. With a business model like that, you had better make sure what you are talking about if you want to stick around. These are a few points he taught me about identifying the next Billion dollar company.- Of the 14 companies that reached hypergrowth and made it successfully to a billion dollar company, 12 of them are all in the Health & Wellness segment. The other companies in the financial arena. All of them addressed real needs for the baby-boomer population. This is a very important statistic in cons idering your company. Make sure it is in Health & Wellness if you want the best chance to make the big bucks, steady for the long-term.- Avoid network marketing companies promoting utilities. Although the sustainability is there, the big issues is with the pay plan, the numbers simply do not work. The competition is incredibly tough, and therefore margins are almost nonexistent, its impossible for a company to setup a reasonable compensation structure that is both fair to the full-time as well as part-time business builders.- Avoid network marketing companies promoting fad technology (ie. voip, new cellphone network, electronic devices) - As far as sustainability, all tech network marketing companies are short-lived, technology changes at such a fast pace that it does not allow a company time to mature and grow a sustainable business. Every year there is new mobile phone, new gaming system, new computer, new anything else you can think of and all their competitors. The hype and excitement makes you just want to believe you will be rich by next month. Just believe me on this one, technology is no place for network marketing, you need something sustainable, something people want, need, and require 10-20-30 years later. From the corporate perspective, the profit margins are there, at least in the beginning, but within months, you can find similar quality products online or at an auction for half price.- Avoid network marketing companies promoting precious metals. You've seen in on TV, the shows asking to buy your gold. And there are companies promising "golden" opportunities, It always seems to come up during a recessionary period. However, from the business end, history proves the numbers just do not work to make the legendary kind of passive residual income that network marketing is known for, that's because commodities like these are never in high demand for long, they are only cyclical. Everyone wants gold and silver, so the logic makes sense, but this intense competition also means consistent prices, and It never lasts longer than a period of 2-8 years. I am not saying that precious metals are bad, they just have no place in the network marketing industry. Those that understand the economies of scale and the cycle of capitalism, know exactly what I'm talking about.
2. Management experience - When it knowing what to look for in this category, this is the most misunderstood criteria in evaluating a company. Running any business successfully is actually a science. Over time you realize trends and factors necessary for success.- I cannot stress how important it is that the management in the company has previously had some sort of direct experience operating a successful network marketing company before. Too many times a successful network marketer makes it big in the industry and believes that qualifies him to run a company. The two could not be anymore different and is an incredibly difficult transition. If they do not have previous experience running a successful network marketing company from the corporate side, they do not belong on management.- It's vital to have a team that has vision, purpose, passion and unity geared towards the benefit of their team and not their wallets. It's sickening to see how many companies are deceiving ot hers in their schemes. Doing everything in their power to lure in partners then change everything from the compensation plan, to the policies. Find a management team with a track record of putting other's interests before their own.
3. Part-time & Full-time Compensation Plan - The "fairness" of a compensation plan differs depending on who you ask. There are personality types that work well with and prefer front-end load programs with no much residual, and then others that prefer a low-tier opportunity in which the entry fee is very low, but requires significant numbers to see any decent check. In the past, compensation plans were underdeveloped and favored one side. The best compensation plan today is a true hybrid, one that pays good money to part-timers and still pays the big bucks for the full-timers.- You want to find a company that puts their distributors first, look for companies with high retention and satisfaction. Believe it or not, most leaders were never properly trained to work a duplicatable system and work to develop leaders. Online companies are notorious for having 10-20 percent retention their first 3 months. While real network marketing companies with a proven track record for offlin e success, consistently show numbers of retention over 70% their first 3 months. This is a MUST for longterm growth and stability in any network marketing company.- These front load programs, usually high-tier opportunities can make you a quick buck, but you are stuck working always, depending upon your activity to constantly create your check. This kind of pay plan has evolved to the point of being contrary to the basic beliefs and concept of network marketing itself!- Low-tier opportunities can make sponsoring seem easier, because of the affordable cost, but with is arises other challenges. In these programs, it takes an incredibly large team before you see any decent check. It may seem that you are getting results, but the rate of attrition when your team members aren't making money is going to skyrocket leaving you constantly working, again contrary to the basic beliefs and concept of network marketing itself!
4. Products and Services People Require - It's important to understand the difference between what people say they want and what they actually need. If you can just understand this one concept, you will be a millionaire no matter what industry or work you are in. This is yet another area people really lack understanding.- The number one question to ask yourself here about your company is, "If the opportunity was not attached to this product or service, would that product still sell as a stand alone product?" It does no good for a company to sell a product of service at a premium just so distributors can make extra money. Customer quickly realize they can purchase the same products online for half the cost and as a result, loss of trust = dying business.- Look for products that people require and desire. Identify the real needs and concerns the majority of your target market may have. (ie. For baby-boomers, they are most interested in their health, regaining what they lost through all the years of work, in their retirement, financial services to enjoy their "golden years")- Avoid products that people want & flaunt. Businesses built of hype and flash are gone just as fast. Fad products, hype products, hot commodity for the year (ie. precious metals) Cash Gifting IS illegal
5. Proven system for success - A system that has an easy step-by-step blueprint for success gathered from the business building experience of the top leaders in the company. It really helps to have the knowledge and guidance from someone who has actually built a real team of huge numbers before. Trust me on this one, the wisdom and knowledge that comes as a result has no substitute.- It will save you lots of time and money if you can get involved in a company that has a system that incorporates all methods of business whether online or offline.- 100% internet network marketing businesses don't work - These just don't work, there has never been a organization that is still successful today built 100% online. This industry is a people business, no matter what anyone says. People will always trust their family, friends, and trusted professionals, than a stranger online. Thanks to the internet, many business tasks can be automated and delegated, however the fundamentals of bus iness remains the same since the beginning of history, the key is in the relationship now more than ever.
6. Well-Capitalized Company - This information, especially with newer companies is kept as far away from the public as possible. And for good reason. If you were to see the real numbers behind the scenes you would be shocked! It takes a lot of money to start a network marketing business, in the tune of at least $4-5 Million to be exact. Make sure the opportunity you are about to join, isn't desperate for your money to pay their bills. It rarely leads to a mutually beneficial situation.- I've seen many family and friends fall victim to a company that goes bankrupt due to being under-capitalized. Its an avoidable situation! Make sure to do your Due Diligence! At the same time I've seen and heard thousands of stories of success choosing the right company. Treat this like a business, think with the end in mind.
7. Timing - This is the biggest multiplier and catalyst for your business growth, if all the other components are in place and you've mastered your mindset. I've put this last because people are ready when they are ready, and timing in a company only happens once, a big portion of this is being at the right place at the right time, with an open mind and the ability to take on lucrative projects. Caution: The Internet and recession are prompting literally thousands of start-up companies. Lots of the companies have glaring holes and thus can easily be avoided. Many companies however are growing in their ability to deceive and take advantage of people. It's important to identify a company that can not only make it past the hype but grow heavily and steadily over years to come.- If each and every one of the other 5 factors are in place, proper timing can be the difference in getting paid $30K per month and 300K per month. (The right company will require work, but being part of momentum can increase your check from the 10-15% annual increase average to 10-15% monthly)- Being in a old but "stable" company with a product or service losing demand is a guaranteed formula for disaster. (ie. Look at all the top earners of Monavie jumping ship)- There are plenty of new "groundfloor deals" every month, and it is absolutely critical that you make sure all these principles are in place, otherwise you will find yourself in a company that isn't growing or bankrupt.
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- Eric Chong
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