So, you have decided to start a network marketing business? Congratulations! This may be one of the best decisions for you.
Before signing on to a particular company, there are 5 critical things you should learn before you pick a network marketing company.
- Who are the leaders of the company? Do they have a strong background in the network marketing industry? Have they “come up through the ranks” in the industry? These should all be considered. The leaders should be ethical and have a good reputation. Ideally, they started out as network marketers themselves; that way they know the industry inside and out. They know the struggles that new networkers go through. It’s great if they listen to their people building a business and make changes accordingly.
- What are the products? At the end of the day, a network marketing business is only as successful as the products that are moved. If you would not buy these products retail, then you may want to reconsider this company. Are the products consumable? If so, one sale will likely make future sales a little easier. I will go a step further and ask: “Are
they the items that people purchase for daily consumption? A $200 bottle of champagne is consumable, but most people do not buy one and consume it every day.
- Review the compensation plan. If you are brand new to network marketing, the compensation plan may look like a big matrix of percentages and promotion levels. You should try to get an understanding of the ways that you get paid. In most network marketing companies, there is more than one way. Do you get bonuses when you sign up new people? Do you get a car allowance when you reach a certain level? How far down in your organization does the plan pay? Is there a limit on the width of your team? If this is all new to you, ask the person who introduced you to this company to explain it.
- Does the company do at least some promotion? Many network marketing companies claim that they are not spending money on advertising; rather their marketers are their advertisers. But, there are some network marketing companies that do at least some promotion. When leads come in from those ads, they rotate through them and assign them to established marketers.
- The last thing to take a look at before joining a company is do they have a step by step system to teach you how to be successful? One of the many things that can discourage someone from continuing in network marketing is not having a team of people to work with to help them attain the success they crave. This is crucial! You should be able to rely on your team, specifically your sponsor and upline, to teach you the skills you need to build the business. With the power of internet, I would go as far to say that they should have an online system marketing/lead generation as well.
Be sure that the company you join has these 5 critical features in place. If it is missing one of these 5 features you most likely will not reach the long term residual income you are searching for.