What To Look For In A
Network Marketing Opportunity
Network marketing is a great business model for people who want to work from home, but before you should consider joining any network marketing opportunity, you should carefully evaluate it.
Here's what to look for in a network marketing opportunity:
1. Does the company/sponsor have a system in place to train and mentor you?
The biggest reason that people fail in network marketing is lack of training... hands down.
That's why I've always made training one of my top priorities for everyone on my team and you should too. In fact, my team actually works with one of the top trainers in the network marketing industry and I provide a complete system where every member on my team can easily train their new members effortlessly.
You're doomed to failure in MLM if you don't make sure to find a sponsor that will properly train you for success.
2. Are the company products unique and consumable?
In nearly any business, overall success depends on selling high-value, high-demand products. For example, it would be difficult to make money with a company that sells over-priced vitamins when the same vitamins can be purchased at your local grocery store for half the price.
The product must be unique and NOT over-priced.
In addition, for a network marketing business to thrive, it must revolve around a consumable product... a product that must be re-purchased every month.
For example, my company revolves around a service product where the subscriber must remain subscribed each month in order to use the service.
3. Does the compensation plan pay well?
Obviously, any network marketing company you choose to work with must have a great compensation plan that pays you for your effort.
Many companies, mine included, offer all kinds of bonuses like fast start bonuses, car bonuses, contests, etc. that further enhance the earning potential of the company.
When it comes to what to look for in a network marketing opportunity, you have to find a company that strikes a good balance between their compensation plan and the price of their products so that you can get the best business opportunity possible.
4. Is the market over-saturated for the company's product?
There's nothing worse than getting started with a company and finding out that the market for their product is completely saturated. I've personally seen this happen with a particular Herbal-product a few years ago and it's a real bummer.
You certainly can't sell a product at retail when it's available on eBay for half the cost... and you can't sponsor anyone under those circumstances either.
5. Does the company focus on customers or sponsoring?
Again, this is another one of those situations where you have to strike a balance. Any network marketing company that you choose to work with should focus equally on customers AND sponsoring.
Your business will fall apart if you don't market both sides of the business.
6. Is there an astronomical start up cost?
Some network marketing companies require thousands of dollars for you to get started, while others will let you in the door for just a couple of bucks.
Although you may be able to recruit more people in one of those low start ups, the amount of compensation you earn is equally low.
Higher start ups offer a higher compensation package, but also make it more difficult to recruit new members for your team.
You should probably look for something that's somewhere in between -- kind of a middle of the road start up... especially if you lack experience.
7. Is the company dependable?
I talked to a guy the other day who lost his entire business when the company he was working with closed it's doors. This kind of thing doesn't happen too often, but it does happen. Make sure you choose a company that's been in business for awhile and has good business ratings.
8. Does it take a HUGE downline to be successful?
It always amazes me when I hear other network marketers promoting their opportunities and talking about how you only have to recruit 700 people to create a six figure income... get real!
The idea that most network marketers can really recruit 700 people is absolutely ridiculous... especially in some of those high-end programs that cost $4000-$5000 to get started.
When it comes to what to look for in a network marketing opportunity, you should stick with companies that don't require super-high recruiting numbers to earn a decent living.
In my company, for example, if you recruit 3 per month and teach each of those three to do the same, you'll be earning six figures in a year... Now that's a much more do-able plan in my view.
There are other things that you might want to look for, especially if you have a particular product in mind, but these general guidelines should get you off to a good start!
Feel free to contact me anytime if you're looking for additional advice!
Arvada Yates
