How to Choose a Network Marketing Company And Set Yourself Up for Success
Before we get started, we want to put out a little disclaimer that the object of this video and discussion is in no way intended to “poach” anyone from other companies. Rather, we hope to enlighten anyone who may be new to the industry and looking, or anyone who may not have chosen a Network Marketing Company as a “home” yet, and are already looking to switch companies, so they can make the best decision in moving forward.
With that being said, there are countless reasons why someone may switch companies and it’s definitely not uncommon in this industry. Sometimes things turn sour – products change, compensation plans change, leadership changes, etc.
But if you are with a company and are unhappy, or are a newbie looking to find a company to start with, we believe there are 5 critical things that need to be considered when choosing a network marketing opportunity.
Click the video below to watch, or if you’re running short on time, scroll past to read!
- Is there a reputable and duplicable system in place to get people from point a to point b?
- Is there already a plan laid out that people can follow knowing exactly what they need to do to get where they want to be?
- Remember if something works, but doesn’t duplicate, DON’T DO IT…
All compensation plans are designed with one purpose – to pay out money! (shocker, right?) With that said there are some comp plans that are more aggressive than others. Some pay as little as 35% of every dollar back to it’s reps, while others pay upwards of 50%.
Instead of focusing on the little details of a comp plan, such as pools and percentages on royalty bonuses, you need to look at 2 key factors –
- The average revenue of each distributor per month. Meaning, how much volume per customer is each distributor selling. You want a business where customers are 70-80% of the revenue coming in. This shows a strong customer base which keeps a company FTC compliant and gives each distributor a stable foundation to build on. (It also shows that people aren’t garage qualifying…)
- Retention – How long are people staying on the product. If retention is low, you have to constantly rebuild your business which means you aren’t building a residual asset… you’ve just stepped into another job! High retention is key to being able to rank advance in any comp plan. You need to be looking for, at the very least, an 80% retention rate! Which means at least 80% of customers are placing regular orders. (There are very few companies in the industry right now that have it.)
In the end, all that matters is how many people do you have to recruit in order to build a solid income and how long is everyone staying on the product? All the other bonuses will work out for themselves.
There are a few questions you need to ask yourself about the product you’re promoting…
- Does it go against any of your morals, ethics, or values? (We’re not selling razor blades to babies, right? lol)
- Is it consumable? (Are people going to need to buy more every 30 days? In order to build a residual income fast, people need to be buying it over and over again. Not like a purse, shampoo, lotions, make-up, etc.)
- Is it unique? (In order to stand out and be remembered, you need to be bringing something new to the table!)
- Does it work and can you prove it? (Show me the science! People aren’t dumb. They want proof other than testimonials that something works… Show me peer reviewed clinical studies that have been published!)
- Is it affordable? (Is this something that people can afford to buy every single month? We look for something $50 or less!)
Anyone that tells you timing isn’t important, usually doesn’t have it.
We agree it isn’t everything. You can make money in any company if you work hard enough, but it definitely makes things a whole lot easier when you have it!
Basically what you need to ask yourself is do you want to be first or last? Do you want to be the first one to bring a product or an opportunity to your family, friends, and the marketplace, or do you want to bring it to them when they’ve already heard of it and are getting it from someone else???
In this day and age with social media, people are looking for connection and purpose more than ever. Some questions you need to ask yourself about culture include:
- Do people play as a team and is there respect between teams? (Including cross lines, up lines, down lines, any lines)
- Does everyone matter? (Does that person that’s slow to start feel just as important as the rockstar?)
- Is it an environment of support, compassion, and love?
- Do people feel apart of something bigger than themselves?
- Are both corporate leaders and leaders in the field people that are full of integrity? Can they get you where you want to go?
As a leader, your job is to educate and inspire. Network Marketing is the best way to give people a sense of connection and purpose. Just make sure your team feels safe and they’re led with compassion and love.
But, whatever the case may be for you looking into different companies, you need to do what’s best for you, your family, and your team. If we could leave you with any word of advice, pick a sponsor wisely. Choose someone that can guide you, has an up line that can offer support, and can take you to a higher level.
-Whit and Cari
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