[N139]Network Marketing Company Internet

There are literally hundreds of Network Marketing / MLM companies to choose from, and therefore selecting the right one for you can look a somewhat daunting task. And I say the "right one for you" as it is a very individual thing, and a network that you do brilliantly with someone else may struggle in and vice versa. There is no one network that is simply better than all the rest for everyone, even if some people claim their one is!

A Solid Company

There is little point in developing a business with a Network Marketing company that doesn't last very long, you have the hard work of starting all over again and you can't be sure how many of your customers and team will follow you if your chosen venture has just closed down!

Whilst new networks can be tempting, ground floor opportunity and all that, the failure rate is high, sadly many, however good their intentions may have been, don't make if past the second year. So unless there are really reasons why the new start-up MLM you are looking at should be any different it is wise to avoid anything less than two years old.

Whatever country you are in search for a network that is established and committed to your country, too often distributors are left stranded when a network decides to close its operation in their region. This is less important with the service or internet based companies of course, but the cost of staff, warehousing, office space for product based firms means you want one that is at least making a profit in your country.

Talk to other people in the company and those that have left, how do they feel about the company? are people actually making money? is the help and support there?

Networking Commitment

This one can be more important than any, particularly when companies have a rough patch, and all usually do at some point, even if they are lucky and it is just a few million less profits than the previous year!

You need to find out and understand how committed the company you are looking to join believes in MLM. Have the owners / corporate staff got Network Marketing experience? I'm a firm believer that to run a network that relates properly to the people in it, you need to have built a networking business as a distributor yourself at some stage, how else can you comprehend and respond positively to what the distributors are experiencing.

Does it make sense for the company to be networking? or is it just a way of them gathering names and customers and ditching the network afterwards!? Could the company do better selling its products by another distribution method? If the answer is yes, at some stage they will realise it too.

Something that has altered over recent years is the companies who have entered the networking arena yet who sell by other methods too, but have found success and discovered that by using various complimentary routes to market they can grow faster and still support the networkers who join them. It use to be a case of if a network company sells direct as well you avoid it, look at what happened to DKFL. Yet multiple retail methods can work now if done right, Tiscali is a shining example of this. Whilst they do market direct too, it has made them a respected household name and as a consequence helped their distributors to find customers.

International Business

If some of this sounds too negative I apologise. I personally do believe in the power of Network Marketing to earn people extra money as well as have the potential to generate life changing incomes. However, I'm also a networking realist and in this article want to give a genuine view of the reality of MLM.

Which leads me nicely to the reason to select a company that offers you the chance to develop a team in more than a couple of countries as opposed to those who don't, even if you yourself intend only to build in your home country. In my experience, when big recruiters and team builders join your network instead of another one they need to see the big picture and want to see that there is the opportunity to build international, in the end they may never do it but they have to see that the option is there. And if your company doesn't have this possibility, then they may well decide not to join.

The Products

There are two clear views in networking, one is that the products don't really matter as long as they are not dreadful, and the other is that the product or service is the most important factor. The truth is somewhere in between. There has got to be a market for the products, they have got to be of higher quality than those available in the customers' local shops or be at a lower price. They should be consumable, easy to sell and something that potential customers will see the benefit of purchasing from home, whether it be convenience, personal service and / or enjoyment (e.g. party plan).

Over the decades many products and services have been distributed via MLM but the core proven products types have been perfume and skin care, health and nutrition, jewellery, and housewares. More recently both telephone / internet services and lottery entry have joined this list of successful product areas. It is also worth noting that the companies that pioneered these in the UK, Telco and Final Frontier did not survive and it has been the one that followed like Tiscali, TelecomPlus and Virtual World Direct that have found the long term success.

Outside of the established and new core areas it is hard to name anything that has really worked, toilet rolls, farming, food, computers, websites, holidays, credit cards have all been attempted but apart from Watkins which has done well with gourmet food in USA the others seem to have failed in my view.

The product or service does matter in as much as it needs to be able to be sold via Network Marketing and be repeatably attractive to end consumers, but joining a network purely because you like the products for your own use can be a big mistake, you need to look at the wider market. I buy products from a number of MLM companies as a customer because the quality tends to be higher than I could get elsewhere, however I wouldn't sign up with them all.

Show Me The Money!

Ok, now the most important factor for the majority of people when considering joining a MLM company, the money you can earn. Comparing compensation plans is not always easy, the percentages quoted for both retail and team bonuses often are after tax or based on some points system that may mean that what you see is not what you get. You should always check what the actual amount you would get in real money terms for selling an item and how much money you would really earn on a sale made by someone in your team, also ask what you would receive for retail volume of a breakway managers and how you qualify for that payment. Check any currency variations too. Find out if there are minimum orders (unusual for retail, but quite common for team bonuses) you need to achieve.

Once you have all the facts you can then properly look at the income potential of the Network Marketing business you are looking at. Take into account average orders that those already in the business are doing, obviously you and your team may do less or more than them but it will give you an idea. High percentages can sometimes mean overpriced products and therefore low average orders. For example 50% commission on average distributor orders of ?50 a month (i.e. ?25) is a lot less than 20% on ?500 average (?100 commission).

The hardest thing to find out about is how much people in the business are actually earning at the higher levels, which can show you what the long term potential of the pay plan could be if you are as successful as them.

Making The Decision

Take your time about which MLM you wish to join, you will be putting time and effort into the business, probably sponsoring others and developing a team. It is worth taking a proper look before making your decision.