What To Look For In A Network Marketing Company

By Troy Rocavert

Okay, so you have made the decision that you want to join a network marketing company as a means of capitalising upon the direct distribution and educational marketing trends. With over 40 companies alone listed on Wikipedia, the question is which one is the right choice for you?

I believe that in choosing the right company, the right product or service, the particular industry that best capitalises upon current or emerging economic trends, the best industry pay plan and having the right support from your upline team and having better than average support offered by your company; you can certainly have a major head-start on the road to success in Network Marketing. Will it guarantee you success as a network marketer? Absolutely not!

The key ingredients for success are a fierce desire to achieve your goals, persistence when things do not go your way, loyalty to your company and to your product, a willingness to learn and work outside your comfort zone, commitment to stay the course and finally integrity to do what you say you are going to do. I have seen people with no better than basic high school educations, average ability in math and spelling, people that have started with little money and those that has considerable disadvantage in their lives using network marketing as a catalyst to turn their lives around.

While many people do write their own particular success stories with the first Network Marketing Company they join. You may have also heard as many stories of people who have joined more than one company during their network marketing career; or you may have indeed had the experience of having been a part of multiple network marketing companies. Let's briefly outline some of the reasons why someone would quit one network marketing company just to join another:

• Lack of passion for the product or service (i.e. they have not personally bonded with the product or service) they are conversationally marketing to others
• Feeling that they have not been adequately supported by their sponsor, upline team members or by the company
• Fear of rejection when approaching others (particularly family and friends) about the business opportunity and/or becoming a customer of the products or services the company offer
• Feeling that their investment of both effort and money toward building a network marketing business has been largely unrewarded
• The company folds or takes a different strategic direction not in line with how you want to do business
• The company fails to remain relevant within their chosen industry and/or fails to meet changing demands of consumers and trends within the economy

In the interests of helping those that are at the stage of choosing a network marketing company to join or are having doubts about the particular business opportunity they have chosen within the network marketing industry; I have complied a short checklist of 'what to look for when choosing in a network marketing business opportunity'.

As mentioned earlier is this article this can be a very hard decision, as there are so many companies already established in the network marketing industry and many new start-ups on the horizon. Unfortunately, the failure rate for new MLM's and Network Marketing companies is similar to that of small business (around 90% fail within the first five years). Like any new business getting through the first five years is critical to longer-term success, without guaranteeing it. I have observed when a company fails how deflating it can be for enthusiastic distributors as their organisation and passive income folds like a deck of cards!

I would generally recommend a company that has been around for long enough (at least 5 years) ideally that it is debt free or financing future growth and expansion from profits (some companies make this information available to prospective distributors, many don't)! Ideally the company should be well established but remain cutting edge in terms of product innovation and business marketing, customer development and retention; and also associate training and support. This information maybe available on the company's website, found in business reports or by questioning existing associates. The company should also have a history of strong management and dynamic leadership. We will talk more about trends shortly, but choosing a company that is linked to existing or developing trends within the economy should also form an important part of your research.

2. What to look for in Products or Services
In another article that I have recently written I examine in greater depth what to look for in a product or service. However, for the purposes of this article I have provided some observations on the type of products and services to attach your business opportunity to.

Firstly, the products/services should be unique to some extent (quality or niche focussed). Remember if your product or service is the same or similar in quality or function and not differentiated from what is available in retail or commercial outlets; then you will simply be competing on price. Price itself is far easier to alter for companies or manufacturers, where quality and meeting a market niche are a far more difficult proposition.

Let me give you two examples to reinforce this point. Example 1 is from the Cosmetic Industry. Let's take company A (a large public company using traditional retail distribution) and company B (direct distribution via network marketing) both have similar facial cleanser they are in direct market competition based on price and convenience of purchasing that product. Company B should be able to provide better education and on-going support via educational marketing. However, if company A's product is cheaper and easier to purchase, the customer may choose that product at least 75% of the time. Example 2 is from the Nutritional and Health Supplement Industry. Let's take company A (a large public company using traditional retail distribution) and company B (direct distribution via network marketing) and they both manufacturer a multi-vitamin supplement. Company B's product uses higher potency ingredients and higher standard of manufacturing than that of Company A (the large public company using traditional retail distribution). Now they are in indirect market competition as a company B's product while being slightly more expensive is far superior on quality and value to the consumer price; therefore price and convenience may no longer be the major factors in purchasing that product. Company B should again be able to provide better education and on-going support via educational marketing. The customer may choose Company B's product at least 50% of the time, effectively taking away market share from company A and potentially giving you a new customer.

Other factors when looking at a product include how easily consumable it is (i.e. vacuum cleaners and cars are not really easily consumable). Regular consumption is essential to developing long-term residual income, as the customer has to regularly purchase that product or service from you rather than just getting the benefit from a one-off sale.

Finally, the products or service should provide value for money to consumers and not be at the price point where you are likely to lose customers to another product or service that is far cheaper but of a similar quality.

3. Industry
The company should be situated in an industry with strong market growth or future potential for growth. Ideally the industry you choose should be tied to current (should also have potential for longer term growth) or emerging business trends in our society. Baby Boomers have been a major driving force behind many of the economic trends over the past the 50 - 60. Highly credentialed economic trend forecasters such as Paul Zane Pilzer are predicting that the baby boomers will look to spend their money over the next 25 years on the emerging business trends in the Health, Wellness & Fitness, Financial & Retirement Panning Services and Aged-Care Services. Another emerging trend throughout the world economy is that of Environmentally Friendly products and services, this is tied to a greater social consciousness and media exposure on the issue on environmental protection.

4. Pay Plan
I have tried to avoid specific critiques' of the different pay plans in this article; however the pay plan of the company you choose to partner with should be relatively easy to follow, but even more importantly with some training be easy to explain to others. I always say to people that they should ask themselves - could I present this pay plan to others easily in a clear and concise manner. If the answer is NO, it will be very difficult to build a business without presenting your business and explaining to people how they make money in your business opportunity.

Other important factors to consider when you are looking at a pay plan is that is should not be overly weighted (i.e. front-end loaded is the term) toward signing new associates. These type of pay plans border on pyramid schemes in some cases. At best you will find that you will not be developing a passive income; but rather you will feel that you have a job, that of being a 'sponsor monster'. The pay plan should rewards the development and maintenance of a customer base, as this is the only way to create truly residual income. Finally, the pay plan should reward hard work, not necessarily those that get in first. (I.e. it must fair and equitable).

5. Team Support and Training Program for new distributors
For many people joining a network marketing business it maybe their first experience in business of any type. Therefore the mentoring, training and support from experienced business leaders is important to facilitating the development and long-term success of new distributors. Just like a franchised business a new networker should have the opportunity to plug into a training program that covers everything from marketing, prospecting to training new distributors. The business you look to join should provide a network marketing leadership team and a company-based training system that embodies a culture based on people helping people and high quality coaching and support to all team members. This way everyone has an equal opportunity to enjoy great results and the success that they want.

A simple checklist to look for in a good training system:

• Training must be able to duplicated and involve mentoring or training by a successful upline leader.
  
• Should include an initial and on-going training program from the network marketing company; an organisation or team-based approach to training is a bonus.
  
• Before you go out into the field a training program should have helped you to develop skills in handling objections, developing a customer base, basic knowledge on your company's products/services (remember soldiers are trained on a firing range for hours on end before they are sent to the frontline).
  
• Training should be easily able to be duplicated within your growing organisation.

Network marketing is an industry that has the ability to be able to deliver autonomy and financial security to someone no matter what their level of education, level of wealth or previous business experience. By spending time researching your choice of company you can have peace of mind - knowing that you have partnered with a company that will be around for the long-term and that the last piece of the success puzzle is your endeavour, passion and enthusiasm.

Troy Rocavert is the CEO and Head of the Advisory team behind this Network Marketing Business School website. He is a recognised speaker, trainer and author in the field of network marketing expertise and is well respected amongst the network marketing community for his vision and passion for the industry and helping others to succeed.

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