Monday, 11 July 2016

The Five Keys to Picking the Right MLM Company!

1. Company Management/Experience with Integrity.  
First you must check out the founders, officers & policy makers (administration) behind the company. Also, are there many complaints or litigation against the company? A good place to start is the Better Business Bureau and Hoovers.  Google is even easier. I usually start from backwards when I do a Google search because some big companies just buy the top spots to keep the bad press at the lowest ranking pages. Even if you already in a company, or just considering joining one, definitely get your hands on their policies and procedures. The first thing you want to check on is the termination policy.  One major red flag policy is when they state they reserve the right to terminate the agreement between the company and distributors for any reason or without cause. I have to wonder why in the world they would want a policy as such. Most distributors never see the policies and procedures until after they have joined up with the company. You should always request to see this critical document before even considering the company.
2. Timing in Company/Industry  
Of all factors you must consider before joining any company, this one is crucial. Timing isn't everything, but it's key. If you join a "me-too" company you are not going go anywhere. First of all the market, is demand driven. If there are many similar companies with the same products as yours then you have your work cut out for you.  You can forget it if you join a company whose product time has gone or is all ready in saturation. You are going to go around in circles.   If you're in an industry that has no viable future, again you're not going to see any growth. So with regards to timing and the industry, make sure you do your homework on this matter.  You might not want to join a network company that been around longer that you. If your grandparents were involved in the company, take their word when they tell you to bypass this one. It's definitely, well most likely at saturation.  Saturation is at the point where that are more distributors/customers than prospective customers. People are joining and leaving faster than you can say Jumping Jack Flash.  Do a bit of studying about the industry they represent. For instance, you would not want to join a company selling long distance phone cards, for the simple fact that there is not a market for that product. Why would someone buy that from you when they can go to any corner store or convenience store and purchase one for less than 5 bucks? Would you start a company that sells products VHS/cassette tapes in the DVD/CD era? No, because even though VHS and cassette were once hot items the trend is no longer applicable.  Make sure they have a remarkable product or products not readily available elsewhere, which leads to our next point. 
3.  Remarkable Product (The Illusive Purple Cow)           
"In his book Purple Cow: Transform Your Business by Being Remarkable, Seth Godin says that the key to success is to find a way to stand out--to be the purple cow in a field of monochrome Holsteins. Godin himself may be the best example of how this theory works: The marketing expert is a demigod on the Web, a best-selling author, highly sought after lecturer, successful entrepreneur, respected pundit and high-profile blogger. He is uniquely respected for his understanding of the Internet, and his essays and opinions are widely read and quoted online and off."
Here's what you must to do be successful.  You must not settle for a me-too product or company.  Do your research and due diligence concerning this matter, BECAUSE this is one the most important factors concerning your success. This is also relative to timing. Your product can be considered a purple cow, if it is the first to market or it the first to have strong marketing campaign behind it. If no one knows about this product, the first company to launch an effective marketing campaign turns their product into a purple cow (something different, remarkable).  For example, lets say Company Alpha for example, was the first to bring to market the noni drink to market on a large scale. Now, there are other companies that market noni but Company Alpha has the market share. This is the same with Company Bravo and the mangosteen product and Company Charlie and the Acai beverage. Actually, I gave the real world  companies a serious look but had reservations when the me-too products started popping up. For some reason, I didn't like the fact that now the Big Boys and SELL'MO were now competitors with very similar products.
4.  Compensation Plan That Pays Part-timers. 
One of the first things that you have to look at before signing a distributor application is the compensation plan. The plan should be fairly easy to understand and not majorly complicated. The more complicated the plan, the more likely the company is trying to hide something.  Also you want to peruse the company's policies and procedures. There are many different types of compensation plans. They run the gamut from overly complicated to incredibly simple. The plan should be fair and compensate both the company and the distributors.  Also the plan should pay both part-timers and the heavy hitters for the efforts fairly. Some compensation plans are guilty of doing either one or the other. The ideal compensation plan does both.  
A balanced plan reduces the level of attritionAttrition in network marketing is defined as a simply as the ratio of people leaving an organization verses those that stay. There can be many factors that attribute to thid effect.  Competition is the biggest cause for this. When a me-too company copies the original company, they usually will attack the weakness or vulnerability of the former and highlight the flaws of the distributor's present company and present their company as the solution. Now this might seem cutthroat, but it's really just a matter of survival of the fittest. If company A did their homework or was at least actively communicating with all levels of its distributor base, it would be able to defend and go on the offensive against such attacks. OK.  Let's get back to the basics. One of the best ways to reduce attrition is to get your distributors making money as soon as possible. This is addressed in the next step, the system for success.
5.  System for Success  
This pillar is considered the most important. This factor is what creates leverage and allows you to take full advantage of the principle of compounding. Picture in your mind a table with 4 legs on the ends and a center leg piece in the middle. This table is considered very sturdy and secure. This is what the system does. You can jump in right away and plug in to a successful system already in place. Now, if you are starting the organization from scratch you will have to develop this system on your own. This is referred to as the "school of hard knocks". You will have to try different techniques and tweak them to fit your organizational needs. Once you develop your system, it will be able to create growth even if you are not actively working in it. That is the power of leveraging and true duplication.

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