Copyright 2006 Dave Sherwin
I have read articles from "experts" about how to choose a network marketing company, but many of these articles are cleverly disguised attempts by the author to get you to join THEIR company! But their company may not be the right one for you.
I recently spent some time with a good friend of mine that is a retired network marketer that now owns a successful lead brokerage company, and is connected with many different opportunities, and he has a unique, "no axe to grind" point of view about choosing a company based on four criteria, and I think he's exactly right.
These four things are in order, with one being the most important, then two, etc. I didn't agree with him at first, but as I listened to his logic and reasoning I came to believe that his four criteria really are correct.
1. Choose the right sponsor.
I know, I know, you were thinking number one would be the right product, or the right company, or something else. But the fact is a newbie that shops for a great network marketing sponsor has a huge advantage over somebody that falls into a network marketing company by chance. Things to look for in a great sponsor:
a. You like each other and have common interests.
b. They are willing to spend time coaching and mentoring you.
c. They are successful. You need to do your homework, because the fact is a lot of people in network marketing misrepresent their income levels. Most companies publish a "Profiles of Success" or a newsletter that highlights their successful associates. Look for a sponsor that is on the "leader board".
2. Choose the right marketing system.
This one is critical. If you want to market online, but the company you are looking at wants you to do home parties, you have a problem. Don't make the mistake of joining a business with traditional marketing techniques if you want to do internet marketing. And don't join an internet based business if you want to work with your friends, family and neighbors. Make sure the company has a system in place, and that you like the system and want to market your business that way.
3. Choose the right compensation plan.
Let's face it, if you can't make some good money in a reasonable amount of time don't waste time! Some companies look good, sound good, but pay peanuts. And don't get too caught up in all the bells and whistles and fancy terminology of the latest greatest gimmicky comp plan. Whether it's a binary, break away, unilevel or anything else doesn't really mean that much compared to how much of the total revenue is paid to the associates. In other words, a payout of 45% to 65% of gross revenue is typical in network marketing organizations, less than this is below the market, more than that is probably a sign of an unstable organization.
4. Choose the right product.
Yes, this really is number 4. Think about this: How many business school graduates get a degree each year and then look for a really cool product to market? None. They look for the best possible company with a great compensation package, and you should too. Yes, the product is important. Yes, it has to do what it says it does, and shouldn't make any extraordinary or controversial claims. Yes, you should love it. But it comes in solid last place in terms of choosing your company.
So there you have it, four criteria, in order, for picking the right company. But remember, once you have made your decision, stick with it! Network marketing is not a "get rich quick" or a lottery. It takes persistence, consistency, and "intestinal fortitude" to be a successful network marketer. So stick with it, have fun, and be consistent until you achieve the rock star income network marketing promises! |
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