The Company
How strong is it? How long has it been in existence? Is it publicly traded on one of the Stock Exchanges?
There have been many Network Marketing Companies that were successful for a number of years, then failed, or slowed down in later years. It may have been do to more competition entering the market. Or, perhaps it was bad marketing.
In any event, the Network Marketing Companies that have been the most successful are the ones that have a long track record, and that are publicly traded.
The Securities and Exchange Commission cannot trade a company on the Stock Exchanges if they do not meet tough financial criteria. A publicly traded company means it has merit.
The Need for the Product or Service
Many great products and services are being offered to the public. However, if the buying public does not see a need for it's use, they will not make a purchase.
How many people need a refrigerator to keep their food cold? Apparently millions, because there are hundreds of different makes and models on the market. The need for refrigerators has produced a competitive industry.
Now, how many people need three-legged, kitchen tables? I don't think there are too many individuals shopping for three-legged kitchen tables, if there were, the market for three-legged, kitchen tables would be apparent, and companies would be running over each other to produce them.
My point is this. If you are going to sell for a Network Marketing Company, then chose one that has a product or service that fills the need of the buying public. It is much easier to sell ice in Florida, than it is in Alaska.
People make buying decisions based on need, and wants. If you want a product bad enough, and it is within your budget, you will most likely buy it. If you need a product or service, and it is within your budget, you will likely purchase it.
The Product
There are many Network Marketing Companies selling wonderful products. However, if you look at the types of products that are being sold, you will recognize that many are the same types of products.
Vitamins, health food, home cleaning supplies, water and air purification systems, dominate the marketplace of Network Marketing. Competition is fierce among the individuals who are selling these products. You need to ask yourself.
Do I want to compete not only with another like product, but also with many other people selling a similar product.
It is much easier to sell a product or service that has very little competition, where you are not competing with the price of many other like products. Also, ask yourself. "What is the media saying about the product?" Has their been good press coverage about the company, or it's product or service?
The buying public puts a lot of value on what the major media organizations say about products, and companies marketing them. You will have a much better time working with a Network Marketing Company that has been receiving positive press coverage throughout the years of its existence.
The Compensation Plan
Of course, you want to be sure you are compensated for your effort working with a Network Marketing. The compensation plans of these companies are based on what is called passive residual income.
Passive residual income is income that is earned many times over with very little effort, or no effort at all to maintain it. Authors, Insurance agents, film producers, and musicians, are just a few who earn incomes that are passive residual.
When they make a sale, or produce movies, a book, or a CD, they continue to receive an income for many years from their efforts. This type of income is the best way to earn a lot of money. It is also the staple of Network Marketing Companies. However, the compensation plans of many of these companies are complex. Therefore, you need to be careful in considering which company has the best plan.
Here is a simple formula to use when looking at the compensation plans of these companies.
If it's confusing. Stay away from it
If you need to talk to two or three people to understand the compensation plan of a company, or if you spend hours trying to decipher how the plan pays, then it is not a compensation plan that you will be happy with down the road. You will always have questions about whether or not you are being paid what you are suppose to be paid.
Compensation plans from Network Marketing Companies that are confusing usually have a hard time staying in business.
Timing
If you can find a Network Marketing Company with a product or a service, in which the time has come for that product or service, then you can position yourself to be very successful.
Market timing for a company is critical to the company's success, and the success of its people marketing that product.
A product or a service that comes along and fills a need for the consumer, as I mentioned above, makes it much easier to sell, than a product that has lost it's appeal, or is no longer wanted.
The product does not have to be a new one to be a timely one.
Sometimes products or services that have been around for years, with little fanfare or acknowledgement, will suddenly take off due to an unforeseen need that arises among consumers, or in the marketplace.
Pay attention to the above five key areas of a Network Marketing Company, and your success level will increase dramatically.
Copyright 2009
Frank W. Pandozzi is a Network Marketer, author, a treasure-hunter, speaker, and the television Producer of Exploring Historys Treasures.
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