How To Choose Your Company
The Right Vehicle
Let’s be brutally honest with ourselves here.
Network marketing is all about making MONEY.
You are NOT in charity. If you are building this business because of your loyalty to your company (because you feel that it is a good company) or because you are loyal to your upline, you will FAIL IN NETWORK MARKETING IF YOUR INTENTION IS NOT VERY CLEAR FROM THE START!
A network marketing company (or network marketing for that matter) is just a vehicle for you to make money, full stop.
As an independent distributor, you are an entrepreneur! An entrepreneur must deal with partners, workers and suppliers. You are NOT in business alone (if you are, then you are not an entrepreneur but a small business person). As an entrepreneur, your network marketing company is your PARTNER.
Your business will survive if your partners are performing well. In business, people will break partnerships if it isn’t profitable! The same should apply in your network marketing business as well!
Remember, your company is only a vehicle. If the management team is stuffing up, the margins are low (and not profitable), and the other variables do not equate to a profitable business, then it’s better to find another company!
Remember this golden rule: Mixing business with emotions is a recipe for disaster!
The Right Management Team
The management team is the backbone of your business. They are your suppliers and your collection agents all in one. How can you survive in the network marketing industry if your suppliers are not delivering the goods on time or the company has cash flow problems?
In order to choose the right company with the right management team, you must do your due diligence on these factors:
• Their track record. Is the network marketing company backed by a solid track record?
• Is the team here to stay? There are some network company owners who build and burn and build again. You don’t want to invested interest in a company that is there today but gone tomorrow!
• The vision. Does the company have a solid vision and are they actively working towards that vision?
• The capacity to expand. Sometimes, when a new startup company is expanding, they might run into cash flow problems when their sales volume increases! They need to build more warehouses, deal with shipment and pay MORE commissions and bank loans when more and more orders are taken. Just because the teams are growing and the sales are coming in doesn’t mean the company is able to cope.
A Product That Is In Demand
This is a no-brainer. No matter how good your company, management team, compensation plan or your upline is, a company will NOT survive if their product does not stand the test of time.
For example, multivitamin supplements were a growing trend during the 80s. Because of the rising health needs due to pollution and people spending more and more hours in the office, it created a need.
But that doesn’t mean that the trend is still growing. There are some companies which came up with supplements that do not require water for mixing or swallowing. It caters to those people who are always on the run.
Today, people are not just developing new products… they are engineering new product lines and creating new demands while diminishing existing ones. The question remains… does the demand for your product justify your efforts for promoting it?
The Right Trend
This chart below will tell you what stage you are at. Of course, there is no right or wrong as to when is the right time to join a network marketing company, because it is up to you to work out YOUR own growth.
Front Loading Companies
What is front loading?
Front loading is a bad way to build your business by ‘buying rank’ when you invest in an inordinately large amount of products – especially when you are just starting your business.
A lot of network marketing companies usually collapse due to unethical front loading practices disguised as a ‘shortcut’ to entice reps to invest more money.
If you find yourself investing in more stocks than you need for personal consumption and your monthly personal sales, then you might get yourselves into cash flow problems.
WARNING: AVOID FRONT LOADING COMPANIES AT ALL COSTS!
Wordt vertaald, even geduld aub..
