MLM/Network Marketing Company Check
http://www.marketingarticles.com/MLMNetwork-Marketing-Company-Check/a10241_1
Aleksey
By Aleksey
Published on 04/4/2009
When it comes to choosing a network marketing company, there are just too many to choose from. There are about 50,000 network marketing companies in existence today. New companies open up each day. With the coming of the internet, network marketing industry changed forever.
MLM/Network Marketing Company Check
When it comes to choosing a network marketing company, there are just too many to choose from. There are about 50,000 network marketing companies in existence today. New companies open up each day. With the coming of the internet, network marketing industry changed forever. Anybody could literally start a network marketing company from their home.
Internet has made it so much easier to start an online business, and network marketing business is not an exception. However, that also caused some problems. There are many people who don't know anything about business, but with the power of the internet, are able to start a new work-at-home scheme and collect large paychecks.
The concept of network marketing is very powerful in promoting a product. It's a fact that businesses grow much, MUCH faster, when using the multi-level marketing approach, rather than using traditional methods. With the power of the word-of-mouth and the power of the network, these companies can reach the $1 billion mark in revenue in only a few years.
However, not many MLM companies do. Almost all network marketing companies go out of business within their first year of existence.
Traditionally, starting an MLM business meant working for 2-5 years and then retiring with a yearly income of $1 million dollars. But if the company you partner up with goes out of business in a few months, all your efforts go down the drain, and that's not fun.
So, how do you choose a company that will get you there, and not go bankrupt on you? Here are some pointers.
Learn about the company founders. Network marketing is a business, and needs people who are knowledgeable in the area of business to run it. Research how much experience in the business world the founders of a company have. A lot of MLM companies are started by former distributors who got tired of working for another MLM company. But just having a little bit of experience as a distributor, doesn't mean you'll be able to run a full blown business.
Training. Does the company have a good training system, that will enrich you as an individual, or is it simply using you to sell their products? A lot of times, even if you fail in network marketing, the knowledge you get from the training is well worth the investment of your time and money. Does the company have regular training webinars? Some good companies will have webinars almost every day. Does it provide you with the tools necessary to succeed? Can it teach you how to sell?
The product. Does the company offer good products? Ask yourself, if this product could be sold retail, instead of through network marketing, would I be able to sell it? The most successful companies have products that change people's lives. A good point to consider is whether it is better when a company has a catalogue of products or just one product. It seems like the more products you have, the more revenue you get, right? Not really. Did you know that Redbull has only one product? Yet it's the number one selling energy drink. That is because they can concentrate all of their advertising efforts on just one product and be the best at it. So when you go out and try to convince people to join your company, it's much easier when you have only one good product, rather than trying to make a two-hour presentation on all the products your company offers.
Time in operation. While it may be tempting to jump from one hot new thing to another, to gain the top position in the company, it usually is not a good idea. Keep in mind that most companies don't survive even their first year in business. Some people just jump from one thing to another, and never make any money, because their new company that promised so much, ended up going bankrupt in several months. You want to choose a company that has proven stability. Find out if the company at least paid off their start-up loans. Having debt is such a shaky ground to run a business. However, joining a company that has been around for 50 years may not be a very wise choice either. People who joined decades ago made a smart move, but new people might end up at the bottom of the ladder for a long time. If a company has been around for too long, chances are people have heard about it and tried its products, and there aren't very many potential customers left for your share. So choose a company that is not brand new, but that also has a potential for future growth.
Internet has made it so much easier to start an online business, and network marketing business is not an exception. However, that also caused some problems. There are many people who don't know anything about business, but with the power of the internet, are able to start a new work-at-home scheme and collect large paychecks.
The concept of network marketing is very powerful in promoting a product. It's a fact that businesses grow much, MUCH faster, when using the multi-level marketing approach, rather than using traditional methods. With the power of the word-of-mouth and the power of the network, these companies can reach the $1 billion mark in revenue in only a few years.
However, not many MLM companies do. Almost all network marketing companies go out of business within their first year of existence.
Traditionally, starting an MLM business meant working for 2-5 years and then retiring with a yearly income of $1 million dollars. But if the company you partner up with goes out of business in a few months, all your efforts go down the drain, and that's not fun.
So, how do you choose a company that will get you there, and not go bankrupt on you? Here are some pointers.
Learn about the company founders. Network marketing is a business, and needs people who are knowledgeable in the area of business to run it. Research how much experience in the business world the founders of a company have. A lot of MLM companies are started by former distributors who got tired of working for another MLM company. But just having a little bit of experience as a distributor, doesn't mean you'll be able to run a full blown business.
Training. Does the company have a good training system, that will enrich you as an individual, or is it simply using you to sell their products? A lot of times, even if you fail in network marketing, the knowledge you get from the training is well worth the investment of your time and money. Does the company have regular training webinars? Some good companies will have webinars almost every day. Does it provide you with the tools necessary to succeed? Can it teach you how to sell?
The product. Does the company offer good products? Ask yourself, if this product could be sold retail, instead of through network marketing, would I be able to sell it? The most successful companies have products that change people's lives. A good point to consider is whether it is better when a company has a catalogue of products or just one product. It seems like the more products you have, the more revenue you get, right? Not really. Did you know that Redbull has only one product? Yet it's the number one selling energy drink. That is because they can concentrate all of their advertising efforts on just one product and be the best at it. So when you go out and try to convince people to join your company, it's much easier when you have only one good product, rather than trying to make a two-hour presentation on all the products your company offers.
Time in operation. While it may be tempting to jump from one hot new thing to another, to gain the top position in the company, it usually is not a good idea. Keep in mind that most companies don't survive even their first year in business. Some people just jump from one thing to another, and never make any money, because their new company that promised so much, ended up going bankrupt in several months. You want to choose a company that has proven stability. Find out if the company at least paid off their start-up loans. Having debt is such a shaky ground to run a business. However, joining a company that has been around for 50 years may not be a very wise choice either. People who joined decades ago made a smart move, but new people might end up at the bottom of the ladder for a long time. If a company has been around for too long, chances are people have heard about it and tried its products, and there aren't very many potential customers left for your share. So choose a company that is not brand new, but that also has a potential for future growth.