Evaluating Network Marketing Opportunities
If you read 100 articles or blog posts about, 'Evaluating
Network Marketing Opportunities', you would get 100 different blueprints on how to do the evaluation as well as 100 different opinions on what are the most important things to look for when evaluating
network marketing opportunities. This blog post will be no different. It will, however, give you a little different slant on what is the most important factor in choosing
network marketing opportunities.
First and foremost, the evaluation process should include these points (in alphabetical order):
- Company/Years in Business
- Compensation Plan
- Management/Legal Team
- Marketing Plan
- Products/Market Demand
- Sponsor/Upline/Training
Second, overanalysis or 'paralysis by analysis' can be a major drawback when doing due diligence on selecting a
network marketing opportunity. Spend a day or so on your research, if needed, but there is no perfect opportunity, so don't wait for one. You will never get started if you do.
Third, you should expect to spend at least 6 months to one year before you start to break even with your expenses. If the expectation is any longer than that, you may be able to survive an outlay of expenses but your downline may not.
Evaluating Network Marketing Opportunities - Company
Many people believe that the MLM company is the most important factor when evaluating
network marketing opportunities and will lead with company brochures or slides of an ultra modern building to show the company off. But in reality, the company itself only plays a small role in determining which opportunity to select.
The real thing to look at when it comes to company is the longevity. The company should have been in the MLM business for at least 2 years. If not, that is a definite negative in your evaluation. If you are offered a pre-launch position, you are risking your credibility with any people you sponsor and as we will discuss later, your credibility is all important.
You need to pass on a new start up and, likewise, steer clear of companies that have been around 15 to 20 years. They may be giants in the industry, but branding is important and negative branding can be very difficult to overcome.
Evaluating Network Marketing Opportunities - Compensation Plan
When giving a presentation about a
network marketing opportunity, most people will go into great detail about the compensation plan believing that is what people want to hear the most about. But that is not true according to several surveys done after prospects listened to presentations. They certainly want to know that they can make money but they don't need the details about the triple diamond bonus given to the first person to sponsor someone during a full moon.
Again, the most important point about the compensation plan is does it offer a fast start payment capability and can you start earning regular checks fairly early without having to build a large team first. Making money as soon as possible is more important than learning about overrides and leadership bonuses which usually require a lengthy time period before earning.
Evaluating Network Marketing Opportunities - Management/Legal Team
Other than making sure the company bylaws are following the government's commerce laws, making the company legal, and looking for hidden clauses in the bylaws that can dismiss a distributor without cause, there is no value in trying to determine that the management team is going to be a determining factor in evaluating a
network marketing opportunity.
The years of experience of the team, the number of similar positions held and the fact that they are all family men, with 4 or 5 families each to prove it, does nothing to prove or disprove that the management team is a reason to choose opportunity A or B.
Evaluating Network Marketing Opportunities - Marketing Plan
Before you sign on the dotted line, you should make sure that the plan the company or your upline group uses to market the opportunity or products is one that you feel like you can do. You may have to get out of your comfort zone somewhat to introduce people to what you are offering, but if you are absolutely terrified of calling your brother and asking him to look at a business opportunity and the first thing your upline wants you to do is make a list of everybody you know, then it is time to walk away.
Understand that the company may use one primary method of marketing but your upline may use another. We will discuss evaluating uplines in a moment, but just be aware that if you don't believe you can market the way your presenter is telling you, you will either have to go out on your own and re-invent the wheel when it comes to marketing or you will flounder and probably eventually quit the business.
One more point about marketing. Marketing is the only way you are going to make money in a
network marketing opportunity. Your income is going to be directly related to your ability to market effectively your products and opportunity. Online marketing has been the "buzz word" in the last decade, especially for
network marketing opportunities, but unless you have some experience in that field, there is going to be a learning curve that you may not want to endure. Be very careful before you get started when you are told the primary means of marketing will be from online sources. It either may get very expensive or very frustrating.
Evaluating Network Marketing Opportunities - Products
Even though network marketing is about the movement of products or services using large networks built by individuals, no bigger scam has been perpetrated than the use of bogus products in trying to create a
network marketing opportunity. Products should not be the main reason for you joining a
network marketing opportunity, but they certainly should be a reason for you to pick an opportunity, once all other factors have checked out.
In other words, just because you love the products doesn't mean you are going to become rich if you decide to make it a business. Products will many times keep people on autoship but only if they see that there is a light at the end of the tunnel, hoping it is not an oncoming train. But if you expect people you sponsor to stay on a high ticket product without seeing an income from the business, short of it being life-saving, you are probably in for a rude awakening.
Don't evaluate products in a vacuum. They can be the overriding factor if all other things are equal.
Evaluating Network Marketing Opportunities - Sponsor/Upline
Surprise! This is the most important factor in choosing a
network marketing opportunity. Let me explain.
People don't join businesses, companies, marketing plans, compensation plans, or products. They join YOU! You are the reason that over 90% of people will let you sponsor them. It has been proven time and time again in surveys when asked why "successful"
network marketers got started. It was overwhelmingly because of the sponsor, upline, and to a lesser extent, training they would receive. And after all, aren't we trying to find how to be successful in
network marketing opportunities and not fail?
This is why many people call network marketing "relationship marketing". Because
network marketing opportunities are
really about trust. Trust that your sponsor is telling you the truth and trust that they will help you every step of the way. I am a firm believer in
building a team for life and the only way to do that is to develop and cultivate that relationship over the recruiting period and the first few months of the business.
If you would like more information about how to build a lifelong team of active, dedicated networkers, visit our team page at
http://TeamBeaman.com
