10 Questions You Should Ask When Choosing a Network Marketing Company

In my last post, I wrote that the real skill in the future would be in developing highly leveraged business models, utilizing technology and the increasing power of the internet. I also told you how this basic conclusion took me on a two year journey to locate, network and mastermind with some of the brightest minds in internet and network marketing.

Along the way I have come across a number of different Network Marketing opportunities which looked viable on the surface, but either did not stand up to initial scrutiny, quickly went out of business, or changed their business model, in some cases literally overnight. In order to ensure that I didn't make the same mistakes in choosing a partner that I had in the offline world of direct sales, in the online world of Network Marketing, I adopted a list of 10 questions used by one of my mentors Daegan Smith, when he is evaluating a new Network Marketing Company;

1. Does the company have a product or service that is easily consumed and hard to quit? Put another way, ask yourself, would you buy this product if there was not a business opportunity attached to it? Does it stand alone in the market place and is it competitively priced compared to other products of its type that are not sold through a Network Marketing business model? This is essential in order to avoid the constant attrition of distributors.

2. Is the opportunity a virtual one with Global reach? With the increasing power of the internet it is possible to market your product or service in a global market place, and across different time zones, which means that you can even make money while you sleep. You also have the added advantage that digital products can be delivered immediately, satisfying your customers increasing need for instant gratification.

3. Does the company’s product offer tangible value in the marketplace? In order to be successful, you have to be able to offer tangible and exceptional value to both your end users and business associates.

4. Does the company offer a low cost of entry? There are two schools of thought on this point, as there are a number of exceptional "high ticket" direct sales opportunities available. My personal thought is that you should probably have at least one opportunity carrying a low cost of entry in your business portfolio in order to offer an "entry level opportunity" which appeals to the masses.

5. Following on from question 4; does the opportunity present a low break even threshold? In short the quicker that you can help people to become profitable and make money in your chosen business; the more likely they are to stick around for the long haul!

6. Is this a product or opportunity that you can get excited about? The more genuine passion that you feel for your product or opportunity, the more that passion will cascade through your organisation, creating a viral effect in itself. This is one question that you have to able to answer with a resounding yes!

7. Is there a huge sustainable market for your product or service? The bigger the market for your product or service the greater the number of people that there are to recognise and take advantage of the value that they represent.

8. Is the product or service easy to market? In order to be easy to market, your products or services must be easy to explain and easy to demonstrate. You will make your life a lot easier by choosing a company that offers products that are self explanatory, not least of which because your sales process will be highly duplicatable, taking away the need for your team members to become highly skilled sales people.

9. Can you trust the leadership of the company? Do the leaders of the company have a track record and are they accessible and ready to answer questions? It is vital that you do your homework in this area.

10. Following on from question 9; does the company have a past history of longevity for success? It is going to take a lot of energy to build a successful Network Marketing business, and it's important to ensure that you are putting your energy in the right place.

It is interesting to note that in the original audio that this list is taken from, Daegan didn't talk about the prospective companies compensation plan or income potential. He made the point that it is far more important that a company satisfies the above criteria before you make any evaluation of the likely earnings!

I hope that this has given you some food for thought, especially if you are in the process of evaluating a new opportunity. Tomorrow I will talk to you about an "entry level opportunity" that satisfies all of the above criteria.

Until then,

Grahame