So, let's take a look at what to look for in a network marketing business. Essentially there are 12 items to consider:
1. Make sure that the Company is well established.
Ask yourself: How many years has the company been in business? A general rule of thumb is 10 years because you can determine what type of reputation the company has.
However, there are some top notch companies less than 10 years old out there offering network marketing programs. If you're considering one then do some serious research on the company and the people involved.
2. Do the people running the company have integrity?
Research the reputations of the owners and people managing the company. Look to see what people in local community and in the business world have to say about each individual.
3. The company sells products or service that are used regularly.
This is the best way to make a consistent, monthly income from a network marketing business is to be selling products or service that are used daily or monthly. Why? Because people will then purchase your products or services on a regular basis. That means your income will be more stable. Be careful of network marketing programs that have good quality products or services, but those products or services do not need to be consumed or used monthly, at a minimum.
4. The MLM Company has a unique product line with consumer loyalty.
Look for a program where people who start using the products continue to buy because of the high quality of the products and there are few, if any, other place where the product can be purchased.
5. The company manufactures most, perhaps even all, of their products.
It's important that the company manufactures as close to 100% of their products as possible. This gives the company control over what products wear their label. It should also give the company's distributors more confidence that they are in fact distributing a good quality product that people can't buy elsewhere.
For example, there are only a few companies in the world who manufacture over-the-counter women's cosmetics. What most women pay top dollar for at the department store is really the same stuff at the drug store. The difference is only more expensive packaging and advertising.
6. The MLM Company has a strong retail focus.
Distributors who sell products or services at retail prices are able to enjoy a double-digit profit margin. This is one component that can separate legitimate network marketing businesses apart from pyramid schemes.
7. The company has a fair and lucrative compensation plan.
Many of the compensation plans nowadays are fairly complicated to understand - until you start making money and can see how the plan works. So, make sure you understand the basics. Understand that the best compensation plans are designed such that those just getting started are rewarded and those that have been steadily building their businesses are also rewarded.
8. The company has a car bonus program.
This is an indication that the company values its distributors. It's also an indication that the company is willing to offer competitive benefits to its distributors.
9. The company has a distributor support and benefits package.
Look for a company that has numerous support services and products available to distributors. If medical benefits are available - even better. Also, the company should provide medical benefits to its staff that work in the office.
10. The company has an international expansion plan.
If you can, determine, roughly how much revenue the company generates overseas. If you're considering a company that does not have any distributors overseas, find out what their plan are for going international. Many people have created a nice residual income for themselves by recruiting just one person who lives abroad.
11. The company has a strong mission statement.
Know what is the company's mission statement is and decide if you can get behind it.
12. The company has a good story.
Does the company have a story worth telling? People like stories - good stories. In addition, the network marketing industry is filled with success stories - stories about transformations in health, longevity, and prosperity. Make sure that you find the company's story worth telling. It'll help when you're out there promoting your business.
What's Wrong With Microfinance
By the middle of the twentieth century, advertising agencies were jumping on the bandwagon hiring researchers to find out why certain kinds of products and services were appealing. The focus group gained popularity because its format prompted the participants to explain their reasons and motivations behind product attraction, recognition and ultimately purchase. The use of focus groups grew, especially amongst politicians as policy setting instruments. Focus groups even gained credence in academic research despite having no standard methodology for the gathering or capture of the outputs produced. It looked like the focus group was here to stay.
So what's gone wrong? In his recent Slate Magazine article, "Lies, Damn Lies and Focus Groups?" Daniel Gross challenges the efficacy and value of focus groups for informing product development and marketing. He highlights the widely documented mismatch between what people say about product concepts in focus groups, and the way they actually behave when it comes to making purchases. This small difference costs companies millions in inappropriate product development and misguided advertising.
But more worryingly there is an increasing endemic problem with focus group research that simply refuses to go away. The 'Focus Groupie' is a term used to describe people who for whatever reason spend increasingly large amounts of their evenings contributing to focus groups. You can't really blame them, the promise of £50 about $90 and a free meal is quite appealing. And nothing is sacred for these part-time professional opinion givers. Yesterday they were early adopting gin lovers, today cautious supporters of animal rights, tomorrow who knows? Yet, in the words of one such 'focus groupie' the only thing they have in common is that "after a while the stories don't seem like lies - more like acting - and it's quite fun to pretend to be someone you are not"
The industry is not laughing. In a recent issue of Research the magazine of the Market Research Society (UK) it was front page news. And it's no fun for the clients who pay for this false and potentially misleading information. Torben Jessen, Saga's Research Manager said that clients should be concerned about professional respondents, the fraudsters in particular because "The issue cuts to the credibility of research".
A study into this problem carried out by BMRB between November 1999 and March 2000 found that; One in ten people who had taken part in a focus group within the previous 12 months had done so at least three times that year and one in 100 had 16 or more visits. That's one focus group misled every three weeks. The only thing we know for sure is that the problem is getting worse not better. Liz Sykes, committee member of the UK's Association for Qualitative Research commented "nobody really knows the scale of the problem". Yet, whatever the scale, it's the advertisers who are counting the cost. Many are now moving away from the old focus group model. It's lasted well, remember the focus group was developed when the bi-plane was still state of the art.
Perhaps it's no surprise that a modern approach is increasing its market share dramatically. The use of online qualitative/quantitative research has doubled in the last three years. The reasons for this are obvious it's quick, cheap and by using in-house data, can tap into existing customers and prospects who have already undertaken the desired behaviour. Thus eliminating the fraudsters.
Many customers are using sophisticated psychometric models to help their understanding. Marketing a leading UK magazine reported recently that for Sainsbury's Bank "Marketing consultancy ESP are running and analysing an online questionnaire included in the bank's monthly e-zine, which is e-mailed to the customer database. The bank wants to build a clearer picture of consumers' product purchasing behaviour, using psychographic data." Surely this type of fast intelligent, 'focus groupie' free research is a good way forward. That is unless you are still happy donning your flying cap and climbing into 65 year old your bi-plane. Chocks Away!
Both Kimberly Anne & Jim Brackin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kimberly Anne has sinced written about articles on various topics from Multi Level Marketing, Business Plan and Work From Home. Kimberly Anne is a seasoned businessperson with over 20 years of marketing experience. With a BA and a MBA, she has helped thousands of people start home businesses and achieve success. For ideas on. Kimberly Anne's top article generates over 18100 views. to your Favourites.
Jim Brackin has sinced written about articles on various topics from Network Marketing. Jim Brackin contributes tips, help and advice on therapy and psychology to variety of magazines like Cosomopolitan and Women's Own. He is the body language expert for Sky News (UK)and developed Personaliteye which provides freePsychometric and personality. Jim Brackin's top article generates over 480 views. to your Favourites.
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