The 5 Criteria and Conditions of a Successful Network Marketing and Multi-Level Marketing Business
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 succeed and why do some companies fail?
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 well set up and correct for a network marketing company, it is doomed to fail.
The 5 Criteria and Conditions of Success that a Successful Network or Multilevel Marketing Company must have:
1. The Management of the Company must be upright and with 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 the policies and procedures.
Company management check
To know the integrity of the company’s management,
A. Do a google search and just enter your name and look at what is written, also under how many companies of them have already failed. Check the entries in the commercial registers with the name of the owner(s) of the company and 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 are not going to be in a good marketing position when you offer the products at X retail price, and on eBay you can find the same product for half the X price.
C. Does the company charge you for an order-ready website?
Does the company charge you for any training?
When the company charges you for those two simple things; The company’s management lacks integrity, and the company will have too high overhead, which will affect sales and profit.
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 business is that will almost certainly have an effect on product pricing, and the more the business wants to steal your paycheck. There are many examples that when an Independent Distributor earns a large bonus check like $35,000 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, which more often than not results in less profit for the Network Marketer.
The red flag should be set to:
Termination: Can the company always fire you for all reasons or for no reason at all?
Renewals: The company may not renew your contract on the day of your anniversary, 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 start of a company!
Many make a big show of being first in the pre-launch phase. Many of them do not create a product, but sell the names and email addresses for large amounts of money.
If the company and the product are good enough, they will still be there in 2 years from the start.
The fact is that most businesses fail in their first 2 years.
4. The product has to be consumable and have an 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 every time.
product check
1. Most importantly, 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 wire 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 email of the seller / company.
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 to it? When the answer is yes, then the price of the product is right for you.
Then you need to check if the price is reasonable for your customers. When it’s okay for 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’re never going to 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. Retail = (2X) Wholesale.
In Network Marketing, things are a little different because the independent distributor does not have to worry about research, manufacturing, documentation and brochures, setup and administration costs, etc. So a difference between the wholesale price and the retail price of 25% or more is okay.
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 check this is to go to the eBay website and enter the company name first. This way it is easier to find the products, since many listings have other titles and make them more difficult to find.
When you find out that the products you sell at X retail price, and on eBay the same product is greatly reduced in price, the company and its business model and the 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 on policies and procedures of the company that links the independent distributor.
4. Compensation plan.
A. You need a compensation plan that pays the part-time person well.
B. The 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 to the top level, or establishing great 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 cent 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 its downline, for the average network marketer or distributor who works part-time.
You have to look at what the average guy earns working part-time in a compensation plan.
The superstar space commander bonuses that only 3% of people earn, they are not interested.
Analysis of a compensation plan
The analysis of a Compensation plan can be done by doing Mathematics 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 should 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 find out that those leads are non-responsive 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 duplicating!
You have to understand that the only thing you have to promote is you! People join people. They do not join Business. Network marketing is not a sales business. It’s a business relationship.
You need a proven duplicate system. This means that the system doubles when you exit. (And after you quit, you earn a 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 eBook is the person who wants to do business with you.
Therefore, it is extremely important that you have access to such proven 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 out of life, that will attract this and come true. Your Thought, Vision and Decision for Success.