The description of the 5 Criteria of a successful Network Marketing as written below, is the result of the analysis of 200 Network Marketing Companies from the inside, by a Network Marketing expert, who has built a Network Marketing Business successful.
The main question is:
Why do some companies make it and why some companies don’t?
The general answer is:
A: Due to greed and ego, most network marketing businesses fail.
B: Business Models drive behavior in the Field.
When the business model is not set up correctly and is not correct for a network marketing company, it is doomed to fail.
The 5 Criteria and Conditions of Success that a Successful Network Marketing or Multilevel Company must have:
1. The Management of the Company must have integrity and experience in Network Marketing.
The first question is: Did they successfully build a downline?
Most of them don’t have that experience. They don’t even know how to spell MLM or Network Marketing!
When yes, then they respect you and you don’t have more than 5 pages on policies and procedures.
Verification of the management of the company
To know the integrity of the company address,
A. Do a Google search and just enter your name and see what is written, also under how many companies of them already failed. Check the entries in the commercial registers with the name of the owner(s) of the company and of the directors, and/or managers. You can also do a Google search on the business owner along with the word scam.
B. Go to eBay and see how many of these products are selling on eBay. When products are sold on eBay, there is absolutely no credibility.
You’re not going to be in a good marketing position when you offer products at X retail price, and on eBay you can find the same product for half X price.
C. Does the company charge you for a website ready to receive orders?
Does the company charge you for any training?
When the company charges you for those two simple things; the management of the company has no integrity, and the company will have too high overhead, which will affect sales and profits.
Your company’s personal website and training should be free.
2. Policies and procedures
Policies and procedures do not have to be more than 5 pages. The more pages in policies and procedures, the more overhead a company is that will almost certainly have an effect on product prices, plus the more: the company wants to steal your paycheck. There are many examples that when an Independent Distributor earns a big bonus check like $35000 a month, the company tries to terminate this Distributor or not renew the contract on the renewal anniversary.
The company with high overheads intends or makes changes to the compensation plan that, in most cases, results in less profit for the Independent Distributor (Network Marketer).
The red flag should be set to:
Termination: Can the company always terminate you for all reasons or for no reason at all?
Renewals: The company will not be able to renew your contract on your anniversary day, at any time and without any reason.
The latter happens very often when a distributor earns more than $40,000 per month. There are many examples and proofs of this.
3. Timing of the company and timing of a product in the Industry.
You never want to be at the beginning of a company!
Many make a big deal out of being first in the pre-launch phase. Many of them don’t create a product, but sell the names and email addresses for huge amounts of money.
If the company and product are good enough, they will still be there 2 years from the start.
The fact is that most businesses fail in their first 2 years.
4. The product must be consumable and have outstanding and remarkable quality.
When a product is not consumable, when it lasts forever, then there must always be new sales with new customers. This is a huge job.
But when you have a consumable product with outstanding quality, the satisfied consumer wants the product again all the time.
product check
1. The most important thing is that there has to be a tangible physical product that you buy or sell. When there is no such tangible physical product; When you pay for air, a position, or something you can’t touch with both hands; throw it away, forget it. is a gotcha
2. If you can pay for your product (to your upline) only via money order or bank transfer, then go the other way. The safest is payment by credit card. The most important thing is that you must enter a payment page, with the list of the product, with the product number and the transaction number, along with the price, and the name plus the address and contact information such as the email address seller/company email
3. The product has to be consumable and not last forever.
4. The product must be reasonably priced. Ask yourself: would you buy the product if there was no compensation plan attached? When the answer is yes, then the price of the product is fine for you.
Then you need to check if the price is reasonable for your customers. When it’s okay with them, you can start selling the product. But when the price is very high and the business model offers a 30% discount on the price when signing up as an independent distributor, then know that people only join your business to have the product for less. But they will never build the business.
The minimum difference between the wholesale price and the retail price must be 25%.
Know that in all normal businesses the product has been sold at twice the wholesale price. Retailer = (2X) Wholesaler.
In Network Marketing things are a little different because the independent distributor does not have to worry about research, manufacturing, documentation and brochures, installation and administration costs, etc. So a difference between the wholesale price and the retail price of 25% or more is fine.
5. Check if you have competition with your product or if you have a unique and exclusive product. The first thing to check is if the product is being sold on eBay. The easiest way to verify this is to go to the eBay website and first enter the business name. In this way it is easier to find the products, since many listings have other titles and make it more difficult to find them.
When you discover that the products you are selling at retail price X, and on eBay the same product is at a very low price, the company and its business model and product have no credibility. The company has the wrong business model and has priced products too high due to high overhead. This high cost overhead will also lead to having much more than 5 pages in policies and procedures of the company that links the independent distributor.
4. Compensation plan.
A. You need a compensation plan that pays the part-timer well.
B. People at the bottom of the compensation plan have to earn the most product sales or consume these products. Otherwise, the compensation plan is not good for Network Marketing.
Especially when paying high percentages at the top level, or establishing large immediate downlines in a very short time; this is a sign that deals are taking place at higher levels. The rest of the downline doesn’t know about these deals and doesn’t make a dime from building a network marketing business with that particular company.
In general: The best compensation plan is the compensation plan that pays the most, with the fewest people in your downline, for the average Network Marketer or distributor who works part time.
Look at what the average guy earns working part-time on a compensation plan.
Superstar space commander bonuses that only 3% of people earn, they are not interested.
Analysis of a compensation plan
Analysis of a Compensation plan can be done by doing Math and simply calculating the numbers with just a calculator:
The general calculation that has to be done is:
How much volume do you need in a month to earn $10,000 and split it with the people/distributors that need to be in your downline?
5. Lead Generation / Lead Generation / Duplicatable System
Network Marketers need prospects for their business. Most of them are buying lists of leads and prospects.
After they discover that those leads are unresponsive and therefore worthless.
If your upline tells you to buy leads or make a list of names; run to the other side.
This is not capable of duplication!
You have to understand that the only thing you have to promote is you! People join people. They do not join Businesses. Network marketing is not a sales business. It is a business relationship.
You need a proven duplicate system. This means that the system doubles when it exits. (And after you quit, you earn residual income.)
This is where our free support training and mentoring comes in with a proven duplicable system (for over 26 years);
Everyone who downloads the Free Report as an eBook is someone who wants to do business with you.
Therefore, it is extremely important that you have access to such a verified duplicate system.
You can get this System on your own by registering at the bottom of the site:
It is your decision with your vision to have what you want from life, which will attract this and make it come true. Your Thought, Vision and Decision for Success.