How to Select a Network Marketing Company
By: Mashubi Rochell © 2001 - 2005
How do you choose the right Network Marketing company to work with?
There are now thousands of different network marketing companies, with
tens of thousands of distributors telling you that their opportunity is
best. This article will give you some tips to help you evaluate
different business opportunities.
Is Network Marketing For Me?
First, you will want to evaluate whether a Network Marketing business
is for you. Network Marketing is an equal opportunity business. It
doesn't require special degrees, unusual talents, and is open to
everyone regardless of gender, race or age. However, it's definitely
not for everyone! Ask yourself these questions:
- Do I have the time and the money to invest in starting a business?
Your answer to this first, and most important question will determine
whether you can realistically start a Network Marketing business:
Without a resounding "yes" you will not be able to get your business
off the ground. A business, even one with a very low initial
investment, requires an output of time and energy, otherwise it cannot
flourish. Money does not come rolling in automatically after you sign
up.
Those promises made by "automated recruiters" and self replicating
web pages that you won't have to talk to people are not true! Not one
of the major, successful Network Marketing companies has grown through
this method. Don't be fooled by ads for a "free" business, as all
businesses require some tools in order to get started.
Many Network Marketing businesses can be started for under $500,
some for less and some for more. You will need to purchase a selection
of products in order to experience them for yourself. You will also
have some regular overhead costs such as long distance phone service, 3
way calling service, voice mail, postage, a day planner/schedule book,
and tapes, brochures, videos, product samples, websites, leads, or
other prospecting tools. Most Network Marketing companies also require
that you be a regular consumer of their products in order to receive
commissions, so you will also have a monthly purchase requirement,
usually $70-$250 depending on the company.
- Am I willing and able to learn something new?
Network marketing is a unique business. It is also at it's heart a
simple business. If you have tremendous success in other areas, even in
traditional business, this does not guarantee your success as a
networker. You must be willing to learn an entirely new way of doing
business! What you do must be able to be easily taught to others.
In Network Marketing we call this being duplicatable. When you are
showing someone your business opportunity, they are thinking to
themselves, "can I do this business?" The business needs to be simple
enough for the average person. Your Network Marketing business is not
the place to show off your special talents, your impressive business
attire, your stunning presentation skills. Humility is a great gift for
a network marketer, it will allow you to learn quickly from those who
are more experienced than yourself. Those who begin a Network Marketing
business with a large ego and the need to prove their know-how have
less chance for success because they are not teachable.
- Am I motivated to succeed?
Having a "compelling why", a reason that you are doing a Network
Marketing business, is essential. Perhaps you want to have the time and
financial freedom to spend more time with your family....perhaps you
want just a few hundred extra dollars per month to save for a special
vacation....perhaps you'd like to pay off your mortgage.......donate to
favorite causes......travel the world........have enough freedom to be
able to not work for a month.....whatever your motivation, it must be
strong enough and compelling enough to overcome what I like to call
"everyday inertia". What is "everyday inertia"? The tendency many of us
have to do the easiest things first, and to postpone until tomorrow
those actions which are less comfortable, especially high risk
activities like phone calls that might expose you to rejection!
- Can I handle discouragement and rejection?
While many people that you talk with will be excited to try your
products and to hear about your business opportunity, not everyone in
your life will be interested. In fact, some people will be prejudiced
against Network Marketing because of a bad experience or hearsay. Some
people, regardless of what facts you offer, choose to believe that
Network Marketing is illegal. Some will tell you you're crazy for doing
it! Some people will look down upon you or think you are silly for
pursuing your dreams. Some of these folks might be your friends and
family, even your spouse or children! You must be willing to handle the
inevitable opposition that you encounter from people who aren't able or
willing to see the potential of network marketing. You must be able to
let go of these unpleasant encounters and reconnect with your own
vision and "compelling why".
- Can I work my business regularly at least 10 hours a week?
If your life is so full that you are not able to spare at least 5
focused hours a week to devote to building your business, think about
re-prioritizing your schedule. What is most important to me right now?
If you cannot spare at minimum that 5 hours a week, then it may not be
the right time to start a business. Without regular, persistent effort,
your business will not grow.
- Do I care about people? Am I generous and willing to help others? The
essence of network marketing is about helping others to succeed. You
prosper by helping others to prosper. Without a genuine interest in the
well being of others and the willingness to help them reach their goals
(not your goals for them), you will not develop a strong and lasting
network of loyal customers and distributors.
Some Network Marketing companies promise a totally automated
business, where you won't need to talk with people. However, only a
very small percentage of people are recruited without talking to a real
person, and no one has ever built a lasting network marketing
organization without having real conversations with people! E-mail and
websites alone cannot provide the face to face connection and
relationship that builds loyalty and customer retention in your group.
Live conversations and relationship building are what create true
connection.
- Do I have enthusiasm and a positive outlook?
If you expect to fail, you will communicate this to your potential
customers and distributors. You must believe that success is possible.
Many successful distributors have studied books on visualization and
positive thinking and have attributed their success to having learned
to reprogram their thoughts.
- Do I have integrity?
In Network Marketing you are the president and CEO of your own
organization. There is a responsibility in this, a responsibility to
serve your customers and distributors. All those that you bring into
the business will look to you for leadership and guidance. They will do
what you do! If your actions are compromising of your values and
beliefs, your organization will reflect this, and you will find your
customers and distributors end up going elsewhere!
- Am I willing to persist in the face of difficulty???
Many Network Marketing experts have said that there are only two ways
to fail in Network Marketing: to never begin, or to begin and then give
up. Many successful distributors attribute their success to dogged
persistence in the face of adversity and obstacles.
What do you think? Is network marketing for you? If most of your
answers to the above questions were "No" or "Well, maybe", then it may
not be the right kind of home based business for you. However, if you
had many "Yes" answers, then please read on! Here are some tips to
assist you in choosing the right network company for you.
Know Yourself!
Network Marketing has been called "referral based marketing". Instead
of using large advertising campaigns, the network marketer
conversationally markets her or his products/business opportunity in
the course of everyday life...with family, friends, acquaintances,
colleagues, church or school members, ...and then teaches others to do
the same thing. Network Marketing becomes a part of your life that is
integrated with your other activities. Conversational marketing does
not mean pestering, pressuring, or coercing one's acquaintances and
loved ones, but it does mean that you must sincerely and truthfully
believe in the value of the products and the business opportunity that
your company provides.
You must be a product of your company's products so that the positive
results that you receive are noticeable or easily shared with others.
If your company sells skin care products, use the products and
experience the benefits of them. Share the benefits of your Network
Marketing business with others, like more free time, great tax
benefits, great team support, etc. You must want to share the product
and business with others! Would you want to share this company's
products or business opportunity with your loved ones? If not, then
find another company.
In order to find a company that provides a product and an opportunity
that you believe it, you must first know yourself....what is your
passion in life? What do you care deeply about? What are your
interests? These are important questions because in Network Marketing
your heart, your enthusiasm, and your passion communicate themselves to
others even more profoundly than the words that you use. You cannot
fool your friends and family by sharing a product or business
opportunity that you don't believe in yourself.
Nowadays there are a broad range of products and services distributed
through Network Marketing. By far the most popular seem to be the the
nutritional companies. In the 1997 MLM Insider's list of Best Companies
(chosen from the distributors point of view) all 12 companies chosen
offered nutritional products. Even today (2004) the majority of
successful network marketing companies provide nutritional products.
Some companies like Watkins, Amway and Melaleuca offer a full range of
products and services to their customers and distributors. Some
companies specialize in a particular product or service, like Pre-Paid
Legal Services, The Gourmet Coffee Club, or Discovery Toys.
Most Network Marketing companies fall into one of the following
categories, however this is not an exhaustive list:
- Nutritional/Health Products
- Cosmetics
- Telecommunications (long distance/satellite/internet access)
- Business Services (advertising, leads, publications)
- Services (legal, travel, financial/debt reduction, motivational, dental/medical insurance)
- Full Service Companies (a wide range of household, nutrition, personal care, and services)
- Non Consumable Items (air and water purifiers, toys, books, clothing, jewelry, coins, stamps)
- Food products (groceries, gourmet food, coffee)
More
companies nowadays are broadening their product lines to be offer more
benefits to their customers and distributors. For example the following
nutritional companies have broadened their product selections: Cell
Tech now offers natural skin and hair care products, a full range of
nutritionals and healthy snack foods, Nature's Sunshine branched out
from herbs to offer vitamins, health beverages, essential oils, water
purifiers, and a full range of supplements.
Let's say you've taken inventory of yourself and your interests, and
you have some idea of what kind of company and products you feel
connected to...now what?
What To Look For In A Company
If you are new to Network Marketing, we strongly suggest that you
choose a company that is already established. Why? Start-up companies
may offer wonderful 'ground floor' opportunities, but statistics show
that 85% of new network marketing companies go out of business within
the first five years, most of them within the first 18 months. As a
beginner, you will have an easier time learning the business with a
company and a team that is established and has in place many tools and
systems for supporting it's distributors.
My own experience of working with two start up companies included late
checks, erroneous checks, late orders and back orders, misplacement of
distributors in geneologies (from a computer problem that started when
the company went into a growth spurt), abrupt changes in sales aids,
product claims and even product (one company completely discontinued
it's main product after I had purchased sales aids for that product!).
In addition we had no voice mail system for communication with downline
so our upline leaders spent 18 hours a day on the telelphone! Another
problem was that the company grew quickly, attracted negative media
attention and eventually the scrutiny of several state Attorney
Generals who then shut down the company! :-(
Once you
gain some experience you may find start up opportunities with companies
or teams that you trust, and by then you will know your way around the
industry better to make a more informed decision. I had one excellent
experience with a start up leads company. It was highly recommended by
my upline mentors who personally knew the management, and my own
research and intuition confirmed their evaluation. Bob Schmidt
who is a legend in the network marketing industry, having built three
multi-million dollar distributorships in his 30 year career, sold his
existing million dollar distributorship ( he describes why at 618-355-1190 ) to work with a new company. The Network Marketing Industry is constantly in transition and the one constant in all this change is relationships.
Find good mentors that you trust! Good mentoring is essential in the
network marketing industry and will be one of the keys to your network
marketing success!
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