Finding the Right Network Marketing Company....For You!

So....after a great deal of soul searching,you have finally made the decision to try Network Marketing. First of all, the basic terminology can be confusing - Network Marketing, Multi-Level & Referral Marketing are all the same biz - just a different branding spin on a business/commission structure that pays you for your sales as well as on the sales of those you “recruit” into the business (this is known as your "downline").

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The Party Plan is another type of structure often used by direct sales companies (TupperWare for example!), and may or may not pay the same “multi-level” commission structure, it just depends on the particular company and whether or not you have the ability to recruit a sales force or downline - just different names.

In any of these types of companies, the emphasis is on product sales - and most importantly - there IS a legitimate product or line of products to be sold. These are NOT to be confused with the illegal structure known as Pyramids.

Pyramid schemes mimic multilevel marketing in that they compensate their so- called "distributors" on a multilevel structure, providing incentive to sell the business opportunity to prospects. The difference, however, is that pyramids focus primarily on recruiting new salespeople for your downline, not on selling products or services. In fact, in many cases there is no real product or service.

ALL gifting or loan programs fall under this category, there are no exceptions.

Any program that requires an investment that you will get back simply by bringing in other “investors” is also a pyramid. There have been attempts to work around this by offering ebooks, “loans”, etc, etc....but most of these programs tend to work in “cycles”, “circles”, “phases” etc - where your position rises as you bring in bodies, then drops you to the “bottom” level again after you get your pay-out.....and the cycle starts all over again. The problem is that sooner or later - the pyramid runs out of prospects....and the bottom level loses everything. Over the past two years some very well known people have been arrested and convicted for running pyramid scams. Although the prospect of easy money may be tempting - it is not worth the risk.

There are enough legitimate network marketing companies to choose from that you should have no problem finding one that will fit your needs, personality and work style! Here are some good tips “pre-qualifying” your new “business partner”:

1) First and foremost - try the products! Whether it’s vitamins or kickapoo juice - give the products a good testing. don’t leap in immediately and try to sell the product or the opportunity until you are personally sold on both! If you don’t believe in the value of your product and company - neither will anyone else!

2) Do some market research! Is the product or service competitively priced? Is it unique in some way? Are you going to have to convince people that the vitamin you have is really worth twice the price of the vitamins at the drug store? Or can you point to the label and show that the product has 75% more nutrients for 75% of the store brand??

3) Is this something you can see yourself doing 6 months from now? A year from now? If yes, why? If no......why not? What’s missing or wrong?

4) Do some homework on the company! I If the company has been around for a while, contact your local Better Business Bureau (or log onto its Web site at http://www.bbb.org) for a reliability report on the company. Consult the Multi-Level Marketing International Association by phone at (714) 622-0300 or by visiting http://www.mlmia.com to see if the company is a member in good standing. The Federal Trade Commission (FTC) in Washington, DC, has information on any complaints that may have been lodged about the company; contact the FTC at (202) 326-2222 or http://www.ftc.gov

However - if the company is new, there simply may not be a history to check on so.....

5) If you cannot get much history on the company, then check out the core staff, their background and previous business history. Ages really don’t mean much in this industry - leaders can be 22 or 62! - but the senior management should have a strong prior experience in Network Marketing. As many successful business people discover - being successful in another industry does not necessarily translate to success in MLM.

6) Is the company privately or publicly owned? Financially sound? Don’t be fooled by the often used term “debt free” - it can also mean the company cannot get any commercial credit and has to pay cash for everything - technically, this means they are debt-free.....but they may be cash poor, too!

7) What kind of training does the company offer? Are there numerous conference calls, online and offline seminars? While you may sometimes have to buy some books or tapes - the costs should be nominal. Be wary of any company that pushes it’s reps to purchase expense training programs and seminars, or that include the sales of these programs in the commission plans. Also - avoid any company that allows you to move to a higher commission structure based on the purchase of a training or educational program. Again - the emphasis of a legitimate company will always be on the sales of the products or services of the company, and the building of a balanced base of customers and representatives

8) How and when will you get paid? Is the compensation plan so complicated that your eyes glaze over whenever you try to figure it out? Can your upline explain it clearly to you - so that you can explain it to your recruits? Don’t settle for the response “don’t worry - you’ll get paid” - that’s a risk not worth taking.

9) Avoid a company that encourages you to purchase large quantities of product to attain a higher level in the commission structure! This is called “frontloading” and is illegal. If you are selling to a lot of local customers, then you might want to keep some extra product on hand for local retail sales - but this should be your decision - not something that the company coerces you to do.

10) Does the company have a clearly stated refund or return policy? Make sure that you will be reimbursed by the company for any unsatisfactory products returned, and make sure that you are following company policy in accepting or making any refunds or exchanges.

11) Is the initial investment and the ongoing monthly requirements to be a
distributor realistic? It may be a great product - but if the initial cost is high, you may lose a lot of potentially good distributors. On the other hand, if the price is too low.....netsuch as the many “free” programs that are available online today - you may see yourself with a huge downline and no income....because no one has made any investment - monetarily or emotionally - in the product.

12) Does the company offer the support and tools to build the business? Do their marketing programs fit your style? If you want to focus on building your business online - what resources do they offer? Is there a good back office available? Contact management system? Autoresponders? A leads program? A good website for you to work with? Most companies today have these available but make sure you know what is included in the basic cost and what the fees are for any "upgrades".

13) Last but not least - if you try a company, and find that it just is not right for you, don't be afraid to quit and walk away! If you are not comfortable with the program, it probably won't be successful for you. Changing companies is not the same as giving up - it is simply changing companies and don't let your upline "guilt-trip" you into staying with something that is simply not right for you. Some people are lucky and find their perfect match the first try. A company may be perfect for your best friend but a complete nightmare for you. It might take you two or three tries to find a good match! It doesn't matter! What DOES matter is that you find the company, the product and the system that you enjoy working with - because that is half the journey to network marketing success right there!

If you can answer these questions to your satisfaction, then your chances of succeeding are good - it just takes time, and patience and above all - consistent effort.

Wishing you success in all that you do!

Melody, aka The Net Lady

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