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Ten Questions to Evaluate a Network Marketing Opportunity
You are setting across the table from your friend, Michael. He's telling you about abusiness opportunity that sounds really exciting. It's network marketing which makessense to you in principle. It's a new one which means the timing is great. How doevaluate the opportunity?You are not afraid of the negative comments like, "it's a pyramid". You know that everysuccessful organization and institution is a pyramid in one form or another. Your family,your church, the company you work for, and the government itself are all built in ahierarchy that resembles a pyramid. It one of the strongest shapes in engineering design.You've tried network marketing a couple of times, but, in one company the products weretoo overpriced for the value. In another, you were recruited but never received thementoring or training you needed to be successful.Still, you are interested in what Michael has to say. It's a new company, so you like theidea that you have a chance to catch the first wave - be one of the early adopters thateveryone who comes later recognizes as part of the organization's leadership. So how doyou evaluate the opportunity? Is this your chance?There are 10 questions to ask yourself when evaluating an opportunity.1.
 
Does the company have a system in place to train and mentor you?Training is one the reasons people say they were unsuccessful in network marketing.Without it many people will not succeed. This is true of any business. Training should beas much about developing character and leadership qualities as it is about learningcompensation plans and sales techniques. It should be holistic.2.
 
Does it have a system to support you in training people you sponsor?A good organization will have the materials and process in place to help you makeefficient use of your time. If you have to develop your own training materials it takesaway from your time spent mentoring leaders in your organization, recruiting, and otheractivities which keep your network growing and healthy.3.
 
Does it reward you financially for training people or are all the rewards forsponsorship?Some companies have large sign-up fees where the money is made on new sponsorships.Healthy companies will reward you for growing your network in a way that focuses onhealthy personal development of your people through training and mentorship.4.
 
Does it have products that are consumable?Repeat consumers are the way to grow a business. Business built on expensive one timepurchases mean that you are always on the outlook for new customers who can affordyour product. It is often better to make the profit on consistent volume.
 
 Consumable products allow you to grow by multiplication. When you have consumables,a new consumer is added to ongoing consumers. When you have one-time purchaseproducts, you are growing by addition. Everyone knows you increase quicker bymultiplication than you do addition.5.
 
Is it a niche market or a unique product with longevity?If a product is not unique or of special value, then the reason people will buy it from youwill be based on price, or convenience which means you have more competition. Themore distinctive it is, the more people will need to come to you to get it.However, be aware if the product is both specialized and popular, you may lose thatniche. A few years ago aloe products were a network marketing niche that eventuallymade it's way first into health food stores and eventually went mainstream in majorretailers bypassing the mlm businesses that introduced it. Choose a company that knowshow to grow and adapt to changing market conditions.6.
 
Would you lose your business if you were temporarily unable to work it?Some companies require high personal volumes every month or you stand to lose yourcompensation status and sometimes even parts of your organization. If you are sick orinjured and can't maintain the status it can be a hardship. Some people buy products theyreally don't want or need so that they can maintain a level. That is not a healthy businesspractice.7.
 
How much to you need to invest to get started?If there is an extremely high fee to get into the business, it often means that the structureis built to reward marketers for new sponsorships. That gets in the way of sponsorsspending quality time developing their people.Another reason for high entrance fees is that the product is a high ticket item whichusually means it is non-consumable item that requires a new marketer to purchase one.These kinds of practices often put companies at legal risk.8.
 
Do you trust the leadership of the company?Many leaders build their organizations on hype and get rich quick promises. You have todiscern the difference between excitement and hype. There are opportunities that areworth getting excited about but, balance it with the concern you see in the leadershipabout issues like integrity, developing people, and true concern for the people in theirorganizations.
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Mujibur Rahman - Internet Business En...

Good Read - I love Multi-Level Marketing and the infinite potential it offers.

reply04 / 16 / 2012
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