Is the network marketing company you’re thinking about joining too new (less than two years old)? If a company is too new there is the possibility that it’ll fold before it gets a chance to take off. Research conducted by the U.S. Bureau of Labor Statistics suggests that most failures of American startups (traditional businesses included) will occur in the first two years of their existence. But don’t let that scare you off. Many the top leaders in this industry became successful because they took a chance on a hot new opportunity that defeated the odds and went on to break industry records. The key is to thoroughly analyze new companies to find the diamonds in the rough. Here are three important things that must be carefully examined:
1. The experience of the management team. How experienced is the management team? Do they have a track record? What are their past successes and past failures? How reputable are they? These are just a few of the questions you’ll want to ask before you decide to take part in a new MLM venture.
2. The company’s solvency. The amount of capital that has been invested into the company; are they going to be able to meet payroll, ship the products on time, stock adequate inventory, pay distributor commissions, expand, innovate, pay their taxes, and unexpected costs (lawsuits, refunds, etc.)? You’d be surprised how many companies are being run on a frayed shoe string just one small crisis away from total collapse.
3. The viability of the product and the compensation plan. There is nothing that will ensure the demise of a brand new MLM company faster than the introduction of a lack luster product coupled with a poor and/or impractical compensation plan. Look for a company with consumable products that are in demand and that can’t be found in the retail stores-or are of equal or better quality than what’s sold in stores. Better yet, look for a product that is of equal or better quality AND costs less than what’s sold in stores. Now that’s a real winner. Look for a compensation plan that’s easy to understand and generously rewarding on the first level. Nothing convinces a distributor (or a distributor’s spouse) to stay with a company more than a product they are proud of coupled with a nice check paid out on the first level.
Joining a new network marketing company can be highly rewarding or terribly disappointing so do your research and use good judgement when it’s time to decide.
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