Okay this article is going to be basically how to find the right company from all of the garbage out there now.
I’ve been in the business for over 30 years, and I have a lot of experience with great companies and some really bad ones. Frankly it seems that there is so much garbage out there. I'm getting so tired of these new companies that open for business and promote themselves with so much freaking hype; You’ve all heard it “We are the cutting-edge; we are the new thing; we are the new kid on the block and our revolution is coming. I’m seeing it almost daily now as yet another juice company thing with a totally unproven model opens up. I’m tired of seeing that the guys that are getting into the business early on will make the bulk of the money. The reason that happens is because frankly they hype the crap out of the opportunity, transferring people from their other businesses organizations, companies that have already failed them, and move those desperate distributors into their new business, basically deciding for the masses that “NOW” this is the thing that they will all have to be doing going forward. “Sorry our last thing did not work out for you, but, hey this one will!” Bullshit, that’s all it is.
No one in their right mind would want to pick a company is likely to go out of business. And even with what I'm about to share with you here, there is no guarantee that your own network marketing company will last for the rest of your life. While there are no guarantees that a company will stay in business there is absolutely no reason whatsoever that you need to be involved in the company that will put you at risk.
So what exactly do you look forward picking a winning network marketing company? Well when I have gotten involved in network marketing industry back in 1980 I got involved in the big boy on the block, the grandfather of the industry, the Amway Corporation. Great company so I thought but it wasn't and isn't, so I left the company after 20 years, and even left the industry. I made a lot of money during my time in the business but not without a lot of sacrifice and investment. Frankly, if I added up the amount of time I spent in it making money, it was more like minimum wage. I believed that very few people could accomplish what I accomplished, because I was basically building a business full time, where most would not be able to make that commitment. So I set out to find a company that would actually give me exactly what I needed for it to have before I would even consider joining.
Is it the company that has the best product? Is it the one with the most scientific evidence to validate the product? Is it because everyone already uses what you have to market? Is the management team making it the best? What about the compensation plan? These questions I'll try answer here.
1. Okay, what were the success factors that I and my partners were looking for when we got involved in the business that we eventually joined? First we were looking for a company with a strong track record. Most companies fail within the first five years. The company I work with now has 26 years of consistent growth, missing only one year 2009 where it failed to grow over the previous year. 2009 was the heart of the recession, yet even though our volume dropped a few million, our customer base still grew from the previous year. Other than that one year, we continued to grow, and in 2011, we hit $1 billion without any debt. We are a totally privately owned company. It is financially sound, and your new company should be financial sound also.
2. Do they have a strong management.
a. Most company owners are MLM’ers and own the down line.
b. Most companies know that they have a very short window to make their millions and move on.
c. The result: most company owners make decisions to make themselves wealthy at the expense of the people’s (their customers) futures.
d. My corporal leadership come from Fortune 500 companies like ADT, Revlon,., Ohio belt, Gillette, Procter and Gamble, Cox communications, UPS, which equals sound business mine is running the company.
e. Is the company's management team principal centered/mission – driven
f. Is there any hype? Is a company promoting itself as the next greatest thing in the planet, a new revolution, something incredible happening here? Crap like that is just bull shit.
3. What is the product that is selling?
a. Are they manufacturing superior quality, safer products protected by trade secret, proprietary formulas and patents – products that can only be obtained from that company?
b. Do you need to create a need to buy the product?
c. Are the products those that people are already buying; in other words are they using old money, money they're spending already somewhere else, or are they forced to spend “new” money to get the products that they don’t normally use?
d. Is the monthly consumption of household basics – creating the residual income, or is it overpriced juice product or unproven supplement whose price has no bearing on the actual cost of the product?
4. Are the products competitively priced?
a. Is the company's price point at or below supermarket prices?
b. There are strong economics involved – great value in being a customer?
c. Are they manufacturing their own products – complete control over the product line?
d. Is the product line recession proof? In other words if a customer was unemployed, loses their job or has an issue with income will they still buy product. Is the product the first thing that they will think about buying after getting laid off?
5. A high reorder rate
High reorder rate is critical when you looking at any network marketing company. The consumer chooses the brand. That's what creates the residual income. Coming from decades in the business, I understood that there was no 80/20 rule in network marketing. Its actually 100% to zero. In other words I knew that as a leader I needed to do 100% percent of the work just to get a check. I've always understood that. What is your reorder rate for the company that you looking to get into. Of course if its brand-new you won't know that. The hype and excitement and the assets thrown at you early on in the early stages of getting the business off the ground is usually a basis for, well let's put it this way, exaggeration. Since the company has no idea what its ultimate results are going to be even if they have 10,000 or 15,000 people, or 20,000 people on hand for the launch, you can have no idea what their ultimate goal is going to be and what they'll actually reach. The bottom line is they don't know because they cannot know. It's impossible to predict. So they rely on hype. They create a false sense of success that doesn't exist. In many cases they don't even have a damn website up. So is the company willing to show a business report?
So in a nutshell one of the most important things to consider is this. Is there a personal production requirement. They should be no new money involved. No need to change your budget. You simply switch from wherever you're purchasing whatever it is you're buying to the new company. Everyone should be able to be a customer and be exciting comfortable about what they're buying every single month for years.
They should have a very low entry fee. Your enroler and any other upline should not be paid a bonus on you joining the business. You should be able to come into the business the right way – not based on a huge buy in, purchasing a useless inventory that you now need to sell to other suckers.They should be a very low attrition rate. In most companies if the customer did not order, they quit! 60% of businesses are brand loyal consumers. That equals stable, residual income, repeat purchases. The customers will stay if there's enough value.
Todd Falcone, one of the worlds most successful networker marketer says the following:
“Very few people have the viewpoint I have. Most people only see what they’re in. So…how do you pick a network marketing company?
Let’s clarify the question a bit.
The reality is that you could throw darts a board and pick literally ANY company you want. But…when it comes to rational decision-making, there are several factors you need to consider before choosing one.
The intention of this is to help you pick a winner, something that has the potential of being a long-term play for you.
I’ll tell you right now that there are few things you want to avoid like the plague.
• Don’t do gifting programs.
• Don’t play money games.
• Stay away from stuff that promises you millions with little or no effort.
• Run from companies or ads that promise to build it FOR you.
• Stay away from anything that promises CASH sent directly to you.
Here are a few FALSITIES that are also perpetuated upon people that simply are not true:
FALSE: You have to be one of the first in to make any money.
I have several personal friends of mine that have entered companies many years into their existence and still done incredibly well financially.
FALSE: It takes little to no effort.
Network Marketing requires work. In fact, it takes a lot of work. When people tell you that you don’t have to do anything, you’re not likely to make anything.
FALSE: You can build it 100% online.
Show me someone who has. There isn’t one single solitary sole that I know or have even heard of who builds their network marketing business 100% on the Internet. Yes…you can use the Internet to market and build relationships, but you can’t hide behind a computer and make money.
FALSE: If it’s not ground floor, you’re too late.
First of all, most companies take a little while to get their legs and figure stuff out. Getting in early CAN be good, but to say “it’s too late” if you sponsor in after the company has been around for a while is a complete joke.
There are probably several other garbage lies that are perpetuated upon new people looking to enter this profession, but those are certainly a few of them.
Does the Product or Service Suit You?
First and foremost, does the company suit you and pull on your heart strings? Do you REALLY believe in what you’re about to bring to market?
You cannot be successful long-term in a company where money is your only focus. Sure…we likely ALL do this to make money, but having that as your only driving factor is a recipe for failure. You’ve got to like what you’re selling and believe in it to the core…IF your objective is for a long-term play.
If all you want to do is make some money and be in something that keeps your interest only for a little while, then pretty much anything will do.
But let me ask you this. How many times do you want to have to rebuild in your life?
By the way, the likelihood of you being with only one company for your entire MLM career is slim to none. Sorry. Just being honest here.
The sad truth is that people talk all the time about building a company, work it hard for three to five years, then enjoy the Golden Years of your early retirement without every working again.
Companies come and go. It’d be great if you could pick such a winner that you never have to rebuild again, but probably not likely to happen.
And…by the way, that doesn’t make our profession bad. If you work on developing your skills and your abilities related to building a downline, you take those skills wherever you go.”
So let me summarize what I feel you need to do to pick a great network marketing company. Pick a company that you feel good about.
1. Stay away from money games.
2. Check out the owners.
3. Do your homework. Understand what you're getting into.
4. Use your gut.
Now, if you find a company, start working get your butt into gear, start doing something with it. Don't look back and don't look forward, just start doing some work. Jumping from company to company is a completely stupid way to building a business. Its a recipe for failure. Once you've chosen the opportunity that you plan to be in, stick with it. Give it time. Don't think you’ll get rich in six weeks. If you're ready to get rich quick, please don’t get involved in Network Marketing. You're only hurting yourself and hurting the business.
