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MLM/Network Marketing: The 5 Step Evaluation Formula You MUST Use

Oct 7, 2007
You believe in mlm/network marketing. You are determined to build a top home based business using this particular business niche. As a matter of fact, you are so excited about this type of opportunity that when you see ads such as "no recruiting required", "we will build your downline for you", or hear the classic "spillover" approach, you are ready to hop on board because you know you will get rich!

Now, before you dive head first into this thing, you must stop, take a breath, and carefully do a thorough evaluation. In other words, don't focus on the hype and make decisions based on emotions, but on a careful analysis if the network marketing opportunity truly will be a viable business option. Wouldn't you investigate before purchasing a franchise or another similar business? This is no different. So, let's take a look at the five crucial steps to take when evaluating an opportunity.

1. Use the 97% rule. Did you know that 97% of the population hate to be sold? The first thing you need to look at an opportunity that will work with these numbers; that will NOT require you to be a pushy aggressive sales person. You need a plan that the average person (part-timers) can build and prosper since most people in your group will be average folks.

For example, if you are in an Aussie two up where the first two sales goes to your upline, where is that going to leave most folks? Remember too, that the industry standard is most people only sponsor 2.7 people in their network marketing opportunity. Can you see why this type of compensation plan will spell disaster for just about everybody since they are automatically going to lose those first two people?

Now, they have to go through all that hard work again. I mean, who is going to stick around for that? So, avoid like the plague any compensation plan that:

a. Limits your ability to place sponsored people where you want.
b. Forces you to go wide
c. No rewards for building deep
d. Won't work for average part-timers.

2. Gauge your timing. You see it everyday; all those mlm/network marketing companies that are pre-launching. On the other hand, you will see ads from companies that have been around for 20 plus years or more. Here is what you need to keep in mind:

a. You will waste a ton of time, money, and energy getting in too early since a huge percentage of these companies fail in the first year or two.

b. You will waste a lot of time, money, and energy getting in too late. If the company you are looking at is a household name already, it's momentum period is way past.

c. What you want to do is get in after a company has proven itself; that it has staying power ( maybe 3-5 years), but before its momentum growth period. If you find an opportunity like this, you will be able to ride the momentum wave to wealth.

3. No inanimate object allowed. You have to make sure the network marketing opportunity you are investigating has an actual product that people will buy even with no compensation plan. This is a must when you desire to build a top home based business. Don't worry about trying to find a product that you find highly inspiring.

You have to make sure there is a ton of hot and hungry people who want a particular product and sell it to them. If you focus on what people and the market are clamoring for, then you will have chosen wisely.

4. How about that company owner? Some people get so excited about a network marketing opportunity that they totally fly by this step. Many times when companies go under, it is because of greed and ego. True leadership is about mentoring others with a servant's heart. It NEVER should be about all the money. Remember, build people and people will build your business.

People have goals, dreams, and desires. Network marketing is a teaching and mentoring business. Since this is the case, the company leaderships attitude and track record related to this is worth investigating.

All you need to do is to go Google (www.google.com), take the names of the company leaders, stick them in quote marks ("name"), and then do a search. If there are a lot of huge negatives about these people, it should come up. Avoid this step to your peril.

5. Duplicatable system anyone? Whatever opportunity you are evaluating, you must check to make sure they have a tested, proven, duplicable success system. You, and everyone you sponsor, everyone they sponsor, and on down the line have to have a step by step system to get off to a fast start: online, offline, one on one, warm market, retailing, recruiting, cold market, etc. No one person needs to do it all of these things, but everyone needs training on these techniques that are available to them.

While there is probably not a company that will provide you and your people with a realistic and affordable system to do all these things, every company should have individual groups of people who have put together such a system. These are the folks you want to find and work with.

Hopefully, can now see why it is important to carefully evaluate a mlm/network marketing opportunity before you just jump right in! By doing your research first, you can save yourself lots of frustration and failure down the road. Follow the steps outlined here and your pocketbook and Mr. Time will thank you for it! You will have indeed build a top home based business.
About the Author
Monique Hawkins is a retail representative for a network marketing company. She believes all can be successful in network marketing with the right skills and mentoring. To discover how to save yourself years of failure and frustration as you build your home business, visit Free Mentoring for Life No Matter Your MLM
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