Tip THREE comes from a question submitted by Lori in Boston…
“When I first got involved in network marketing back in 1999 I joined a company after I fell in love with their product. I loved the product but after 3 years I wasn’t able to make any money.
I eventually dropped out thinking it was me. I haven’t been involved with network marketing for years but I’m still convinced that it’s the best way for me to get ahead in life. I want to get back into things.
Do you have any advice on picking a good company this time around?”
Lori brings up a very good question in that finding a good company is a key component of having a long term, profitable network marketing business.
Choosing a company should always be a logical business decision. Don’t make the mistake of joining a company because of emotions or because of a product experience.
This goes against the way programs are often promoted… but it’s very important.
This doesn’t mean you can’t like the company you choose… in fact I would say that’s has to be part of it… but don’t let your liking cloud your better judgement or go against your common sense.
Good companies will have good products and services. But that doesn’t necessarily make them good businesses. Good businesses will have good products AND good comp plans.
By evaluating companies based on fact and numbers you’ll get the emotional benefit everyone is looking for – a royalty check!
But don’t mistake this to mean that the company that pays the most in a comp plan is the obvious winner… that’s not what I’m saying and there are a few other considerations…
The comp plan is important… but so is the product or service and the stability of the company.
When it comes to analyzing a product or service it doesn’t need to be complicated. There just needs to be a sufficient demand for it. In other words, it needs to be a product that provides legitimate benefits for a certain group of people.
The larger this group of people is the better.
The other part of that equation is the cost of the product. Cost is relative – in other words the more or less cost isn’t as important as the benefits received for the cost.
Generally speaking, the more affordable the product or service is for the target market – the group of people who will in the end use it, the better.
When it comes to company stability there is only so much you can go on but the best is obviously it’s own track record. That doesn’t mean that the oldest companies are necessarily the best – but older companies do give you a better clue as to what their future will hold.
One more note about comp plans…
Comp plans in my book should be easy to understand and explain. You should be able to calculate how many sales or distributors it will take for you to break even and reach early earnings goals of say a couple hundred dollars.
Once you know this you can figure out what level of personal action will be required to reach those goals.
Stay tuned as I cover many more factors that are important in the success of a network marketing business in the coming weeks and months.