Thursday, July 16, 2009

How To Pick A MLM Company

First let me say, that I have yet to meet any network marketer who has made any real money with a company after joining one that has been around for more than a few years. Why is this? I think it is like anything else. If you were to buy Microsoft Stock today it would be much harder to make money with it, than if you had bought in back in the early eighties. I think it is the same with network marketing, or any business for that matter. Once a company gets saturated with distributors it's just much tougher to build as more and more people already know about it. If a company has already hit critical mass, there is no longer any wave to ride and you will just be fishing in "The Red Sea". Of course, the company isn't going to tell you that their top income earners got in early, as they have to keep your hopes alive. Here are my suggestions for picking an MLM Company.

If you only want to make a few thousand a month and don't mind grinding it out for a few years to do so, go with an established company like Amway, Herbalife, USANA, XANGO, Mona Vie, or ACN. These are all great companies, and have great reputations, and great training. I doubt very much they will be going anywhere in the near future and even though you won't probably make a million dollars, they are a safe bet.

If your like myself and want to be earning over $10K per month, you need to find one that is fairly new (within 2 years old or less). This can become challenging as most network marketing companies go belly-up in their first 2 years. Below are a few things I have used to join a newer company.

  • Leadership (Are there any top income earners already involved willing to put their reputations on the line. See if any of your leaders are on this list. Even if its a start up more than likely the company would have recruited some of these folks. If the person recruiting you isn't on this list, hopefully someone in their upline is).
  • Pay Plan (Is it easy to understand, do I get paid on my entire group volume. Pay plan must be easy and good to avoid high attrition). If it takes 3 hours to understand pay plan go elsewhere.
  • Product (Is the product part of a trend, will it be easy to share and market. I usually go with the opportunity over product, but product must be good and popular to sell. Don't want to be marketing an outdated product or something that requires a 1 hour reading of a scientific report in order to sell). Extremely important for duplication.
  • Ranking. (I would only pick a company that has a high ranking in terms of $$$$ for the first 12 months and would probably make sure company has been around a little while). Here is a site I found recently that shows all the top companies in MLM. If the company you are marketing isn't on this list - seriously re-consider.
  • Momentum (Does the company have momentum, is it growing fast, and can I benefit from the growth - Spillover from sideline, upline, etc.... If I have to build it myself, I may think twice before joining. The average network marketer only recruits 2.5 people on average. I want to be with a company where everyone has a chance to make money).
  • Does the company have a hook??? (Has the top distributor or company owner made history elsewhere. Were they a famous author, speaker, health guru. This is a storytellers business, so if you can share a hook of some sort, or compelling story- that makes it much easier to market your business. There is a reason why a company will have a distributor who is a former gold medalist, pro basketball player, or someone who endorses their product.)
  • Brand (Does the company have a website that looks like it was developed back in the early nineties?). As a former Advertising Executive, I cannot stress how important your Company's Image is if you are going to be marketing a product/company. You are putting your name on any brand you market. The company website must be able to compete with the mainstream or you are going to have a tough time marketing. If the company isn't willing to invest in a smokin website, how do you expect them to invest in you. This is network MARKETING.)
  • Tools (Does the company have good 3rd party tools? I personally don't want to be with a company where I cannot share my story primarily over the net. I've done my work with CD's, tape, and brochures, and product samples, they do work, but will cost you tons in mailing, follow up, etc.... I want to build fast, so I want something I can email to people quickly.)
So far, I have only been able to find 1 company recently that has all the above ingredients. Go to my website at http://www.bigmoney4you.info to learn more.

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