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What's Wrong with Network Marketing Businesses?

Mar 7, 2008
Well, nothing, necessarily. It's really a matter of which network marketing business you choose, knowing what to do and then going out there and doing it.

So, let's take a look at what to look for in a network marketing business. Essentially there are 12 items to consider:

1. Make sure that the Company is well established.

Ask yourself: How many years has the company been in business? A general rule of thumb is 10 years because you can determine what type of reputation the company has.

However, there are some top notch companies less than 10 years old out there offering network marketing programs. If you're considering one then do some serious research on the company and the people involved.

2. Do the people running the company have integrity?

Research the reputations of the owners and people managing the company. Look to see what people in local community and in the business world have to say about each individual.

3. The company sells products or service that are used regularly.

This is the best way to make a consistent, monthly income from a network marketing business is to be selling products or service that are used daily or monthly. Why? Because people will then purchase your products or services on a regular basis. That means your income will be more stable. Be careful of network marketing programs that have good quality products or services, but those products or services do not need to be consumed or used monthly, at a minimum.

4. The MLM Company has a unique product line with consumer loyalty.

Look for a program where people who start using the products continue to buy because of the high quality of the products and there are few, if any, other place where the product can be purchased.

5. The company manufactures most, perhaps even all, of their products.

It's important that the company manufactures as close to 100% of their products as possible. This gives the company control over what products wear their label. It should also give the company's distributors more confidence that they are in fact distributing a good quality product that people can't buy elsewhere.

For example, there are only a few companies in the world who manufacture over-the-counter women's cosmetics. What most women pay top dollar for at the department store is really the same stuff at the drug store. The difference is only more expensive packaging and advertising.

6. The MLM Company has a strong retail focus.

Distributors who sell products or services at retail prices are able to enjoy a double-digit profit margin. This is one component that can separate legitimate network marketing businesses apart from pyramid schemes.

7. The company has a fair and lucrative compensation plan.

Many of the compensation plans nowadays are fairly complicated to understand - until you start making money and can see how the plan works. So, make sure you understand the basics. Understand that the best compensation plans are designed such that those just getting started are rewarded and those that have been steadily building their businesses are also rewarded.

8. The company has a car bonus program.

This is an indication that the company values its distributors. It's also an indication that the company is willing to offer competitive benefits to its distributors.

9. The company has a distributor support and benefits package.

Look for a company that has numerous support services and products available to distributors. If medical benefits are available - even better. Also, the company should provide medical benefits to its staff that work in the office.

10. The company has an international expansion plan.

If you can, determine, roughly how much revenue the company generates overseas. If you're considering a company that does not have any distributors overseas, find out what their plan are for going international. Many people have created a nice residual income for themselves by recruiting just one person who lives abroad.

11. The company has a strong mission statement.

Know what is the company's mission statement is and decide if you can get behind it.

12. The company has a good story.

Does the company have a story worth telling? People like stories - good stories. In addition, the network marketing industry is filled with success stories - stories about transformations in health, longevity, and prosperity. Make sure that you find the company's story worth telling. It'll help when you're out there promoting your business.
About the Author
Kimberly Anne is a seasoned businessperson with over 20 years of marketing experience. With a BA and a MBA, she has helped thousands of people start home businesses and achieve success. For ideas on specific home businesses to start visit Kimberly's site www.all-about-home-businesses.com.
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