Although the network marketing industry has very sound opportunities and prospects of growth, statistics reveal that most people who enter this industry have many hurdles to overcome before reaching success. I believe this is caused by a general lack of knowledge on how the industry operates and how to find the right network marketing company. Hence, it’s viral for anyone wanting to enter the network marketing industry to start their career carefully.
Here are some guidelines to follow when searching for the right network marketing company to join.
Step 1: Investigate The Company
It’s important for the success of the marketer to join a company that is sound and viable to enter as a network marketer. Here are some points to consider:
Start with a well-experienced company
The best way to start is to enter with a well-experienced company that has been in business for at least three years or more. The reason being that the company itself has surpassed the initial survival phase and now should be in the growth stage. This increases your changes of success as a network marketer.
Opt for a Public Limited Company
Well-known and established public limited companies are safer to enter and you also have easy access to the company’s information, background, people, and financial strength.
Choose a member of a business bureau
It’s best to joint a company that is registered with the Direct Selling Association or a member of a business bureau. This helps ensure the company’s reliability and also enables you to make complaints to these organizations if there is any misconduct by the company.
Investigate the company’s track record
Look to see how the company does its business and whether it’s on ethical grounds. Identify whether the company’s values match your own and whether it has a stable track record. These are all important if you’re planning for a long-term presence with a network marketing company.
Step 2: Investigate The Products
It’s highly crucial to know about the product you have to market because your success as a network marketer ultimately depends on the sales of the product you are offering.
Here are a few questions to investigate:
Is the product marketable?
As a network marketer, it’s important to partner with a product that is highly marketable and has sound qualities and features. In order to sell a product, you need to research it and have sufficient knowledge to know its features and benefits.
Do you like the product?
It will be easier for you to market a product if you like it yourself. Hence, it will also be much easier to convince others to join your team because you feel more confident knowing that the product is good and you honestly like and use it. You’re not making false promises.
Is it reasonably priced?
Network marketers often ignore the importance of price, which is one of the reasons for their failure in the industry. It’s essential that the product is well priced and either has excessive qualities that make it stand out in the market. Otherwise, it will be nearly impossible for a marketer to generate enough sales.
Is it consumable?
In order to generate commissions, make sure the product is consumable and hence raises the chances of repeat sales. In addition, if the customer actually likes the product then you can retain him or her for the long-term.
Is there a demand for the product?
Avoid products that are obsolete or excessively available at retail outlets. You’ll only be wasting your time and energy if the products don’t have enough demand.
Step 3: Investigate The Compensation Plan
The next important step in this process is to understand the compensation plan. Most of the time a network marketer is providing a duel service: one as a seller and the other as a recruiter. Therefore, his/her commission depend on both of these aspects. This is why it’s so crucial to understand a company’s comp plan and policies beforehand.
Here are some tips:
Is the compensation based on sales or recruits?
You must identify whether the company is an illegal pyramid scheme. If the compensation plan is based on recruits, it’s illegal. On the other hand, if the compensation is based on sales, it is legal. Unfortunately, there is much confusion around what constitutes an illegal pyramid scheme and what is, in fact, a legal network marketing company.
Identify hidden costs
Certain companies require paying initial money or membership fees to get registered as a marketer or sales representative on the company’s behalf. Beware of companies asking you to pay a huge or relatively high investment as they are likely a fraud.
Will you have to achieve any targets?
Find out if you will have targets such as a certain number of members to recruit. Some companies require that you sign up a certain number of people in a specific period of time before they will pay you.
Other Important Considerations
In addition to the above steps, you may also want to consider the following to improve your chances at success as a network marketer:
The best network marketing companies offer training to their distributers about the company’s product features and business opportunity. If you are new in the industry, it’s definitely best to choose a company offering on-going training and support.
Interaction with other members
Some companies offer a way to interact and connect with other members. This is a good way for you to get suggestions and support from others in the same industry. Choosing a successful team is the best way to go about improving your results in this business.
Do your research
Before joining anything, do your research by Googling the company and reading reviews from other members. If you see certain trends that raise red flags, it’s probably best to avoid the company.
I hope you’ve found this step-by-step guide for choosing the right network marketing company useful. In a nutshell, the right company is comprised of people who are committed to quality products that make others’ lives better, see their distributers as assets, and have lucrative compensation plans that reward well for your efforts. The best companies train their people and are always there to provide help and support.
If you’re currently looking for your next network marketing venture, learn about the company that I have chosen to partner with and why I personally feel it’s the best option.
As always, feel free to comment below if you have anything else to add to this guide or any input to share.
Like this post? Get my free report…
If you’d like to learn about my top free and dirt-cheap prospecting and recruiting tools I personally use to build my network marketing business, get my free report.