This will only increase as Companies and Individuals look for ways to minimize distribution and advertising costs. This allows the Company to avoid huge marketing costs and collection issues, and also allows the Company to maintain an acceptable profit margin.



In return, the Independent Distributors are given an opportunity to share in the profits. Tod do so, the product should be of a higher quality than what can typically be found at traditional retail outlets, and be value priced with comparable products. It is better for the Independent Distributor, often called an "IBO" (Independent Business Owner) If a product of equal quality and value cannot be purchased through traditional marketing channels.

What typically happens is that products that are superior quality from a Network Company are successful are "copied" by others, and often when end up on store shelves. Many of these are inferior quality to the original, but are offered at a lower price point using the same appearance and similar ingredients. In marketing, whether network or not, this is called the "product life cycle".

In the beginning, Network Companies and their "IBO's often have a strategic advantage, especially if the product is unique, which it often is, and excellent quality. Regardless of the Business Opportunity, it cannot sustain the Company itself. In the end, it has to be about the product. If you are fortunate enough to have a unique , quality product, and are in "early", then your chances for success are greatly enhanced.

The longer the product is on the market, the more "copied" product will appear, and the more distributors. A good example are nutritional supplements. 40 years ago, you could purchase higher quality supplements and vitamins from direct Companies like Shaklee. Lower quality vitamins were(and still are) available at retail, Like "One a Day". As society has looked for alternatives, Network Companies offering quality supplements have increased.

Currently, the Health and Wellness sector for Nutritional Products is approaching the 1 trillion dollar mark. These type of products are consumable, and offer an excellent chance at repeat sales.

If you carefully select the right Company with a unique product, and your timing is right,then your chances for success are greatly enhanced. It is much better to get in early, selecting the right Company and other "IBO's"

to work with, which are often referred to as your "upline".

Most Networking Companies that fail do so in the first 18 months; But, it is also true that those that enroll during pre-launch or shortly thereafter stand to make the most money; so it is important to select the company carefully. You don't want to invest 2 years of your time, and start making a residual income that you never though possible, and the company gets sold, goes out of business, or can't produce enough to meet demand. And you don't want to wait 2 years, to see if the Company has staying power, and then miss out on all that early growth and opportunity.

It's sort of like picking a "penny stock" , anything under $5 per share. Microsoft, Apple, Dell, and Cisco were once "penny stocks".

Inevitably, you will pick some good ones and maybe some that seemed like a good idea that didn't turn out as well. So in evaluating a Network Company, you want to consider the Financial Stability of the Company, the Uniqueness and price point of the product, and the upside growth potential.

Look at the owners and Management team. many were successful as an IBO in a previous company, or as an officer or Investor.

The great thing about Network marketing is using the Power of Leverage, that is others will help you grow your business. So in the best case scenario, you invest a small amount in product, primarily what you will use, and then spend time developing your business. Network marketing is all about working smart first and hard second. You can spend an extraordinary amount of time and money and have little to show for it. On the other hand, if you work smart, you will be one of those successful entrepreneurs we hear and talk about. And realize it may not happen on the first Company. I know a fellow who was a house painter by trade who did not find success until his seventh company, and became a multi-millionaire from that one.

Had he done due diligence, he may have been able to shorten his learning curve. The good thing for anyone considering a Networking Opportunity is we can learn from others who have succeeded. Many have had failures along the way, and by studying them you can enhance your opportunity for success.