Monday, June 2, 2008

The 5 Pillars Every Network Marketing Company Must Have for You to Succeed

Before you get involved with a network marketing company, make sure it has these five key qualities before you sign up (and, of course, before you invest any money!) If not, run like heck (in the opposite direction!)

Pillar 1. Does the company management have integrity? Do a Google search on the company owner(s). If the owner has had any experience in building a network marketing downline then the compensation plan will keep the distributor in mind. The plan will make it easy to build a business and there will be an excellent support system in place. If, however, the owner(s) have never built a downline, the compensation plan will put the company before its distributors. The plan will make it very difficult for the distributors to make money, if they can at all. Another thing to consider is the Policies & Procedures of the company. If the company does not make the P&Ps readily available to read before you sign up, they may have something to hide (like lots of extra hidden fees, etc.)

Pillar 2. Timing in the company. Timing in the industry! Approximately 92% of new companies fail. If the company does not own it's own software program, they will have problems with it most of the time. They will have to hire someone to tweak it here and there, they will not be able to maintain the website themselves. This can be very costly. It is much better to join a company that has been in business for two years or more. Timing in the company - if you current company is past the growth phase, then it will be very difficult to build a large business - the right company should be entering or in the momentum phase of its growth.

Pillar 3. MLM products! Most companies do have remarkable products. But you have to ask yourself this question: "would I buy the products if there was not a business opportunity involved?" If you join this company, do you get a discount on the products? If so, what is the product really worth? This type of behavior indicates a recruiting mentality. If you are only recruiting, you are only building a temporary paycheck. There must be retail sales to develop a true residual income.

Pillar 4. Network Marketing Compensation Plan. A good compensation plan is one that pays the most with the least amount of people in your downline. Does the plan pay on your total volume, or does it pay on specific numbers of levels, or stop after a set depth? Does it pay part-timers? Do you make money on retail sales? If it is less then 7%, that will kill you!! There is a simple formula that will show you exactly how many people you will need in your organization to make your desired monthly income: How much money do you make per person, per spot, and divide that by your desired monthly income. This simple formula will give you the exact number of people you will need in your organization. Once you have that figure, ask yourself if this is something you think you can reasonably achieve. Then ask yourself if this is something that your team will be able to achieve as well.

Pillar 5. MLM Systems for Success! It is absolutely imperative that you have a system that is duplicateable. People are not duplicateable, systems are!! So when your new distributor asks, "can I do this, and will you help me" will you be able to? Network marketing is about building relationships and trust. People join people, they do not join companies!! If they do, they don't stay long. For more information on how to succeed in this business, check out my "Mentoring for Free" web site and download my FREE e-book - Success in 10 Steps. Best of luck with your network marketing business!

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