So how do you start a network marketing business and have the highest chance of success if you’re taking an honest look at this industry as a way out of the corporate grind? It’s a great question and one I failed to ask when I first got started.
Most of us when we are introduced to this industry don’t realize there are a host of companies out there. All we know (if we know anything) is that there are tons of people running around out there doing things we don’t really want to be associated with; stickers on car windows, house parties, convention sales booths, door-to-door sales, or worse.
Well first let me make this statement: the people doing this business right are NOT doing those things.When I first was introduced to network marketing I was one of those people that did not even know the industry even existed. I had heard of companies like Amway and Mary-Kay, but that was the extent of it.
So for me it was eye opening. I was a comp plan guy as well. So when my upline at the time sat down and drew out the network marketing concept for me I was sold.
I signed up pretty much on the spot.
I didn’t do any “real” research. I didn’t look at other companies. I DID look at the compensation plan, but not in detail. And I did NOT look at the company policies and procedures to see if there were limitations on marketing, advertising, or anything else that could impede my ability to succeed in today’s market (VERY IMPORTANT).
Ultimately, not evaluating policies and procedures (sometimes called rules and regulations) became my achilles heel because the company I partnered with had extremely strict internet marketing policies that absolutely killed my ability to get the word out about my brand. It was so strict in fact that if they found you using the internet they would cancel your membership and stop paying you commissions!
Silly hillbillies.
Ok, so rather than relay to you everything I messed up when I first got started I’m going to lay out a simple blueprint to follow when selecting a company (questions to get answered), followed by a quick set of guidelines to follow for getting started right.
Selecting The Right Company
Determine whether you are attracted to companies that offer either services or products and choose a handful of companies to evaluate in the niche that interests you. It’s easier to market something you are passionate about and the way you convey a message in our industry means everything.
Select a few companies to evaluate partnering with. Before choosing a distributor to contact, look up the following information yourself or call customer service. You are more likely to get facts and accurate information from the corporate offices. This isn’t to say the distributors are dishonest, but they probably do not know the details you are looking for better than corporate experts do.
How long the company has been in business and the last 5 years worth of cash flow statements (is the company growing?) Being in business for a short period of time is not necessarily bad if the company shows strong growth and the other areas below are covered in detail.
What is the company reputation like? Is there a negative connotation to it? Preferably it’s better to work alongside a company that doesn’t have a history of negativity following it around, unless of course you’re ok with objections like “oh, that pyramid deal” or worse.
Does the company own it’s own product line or service, or are they simply a middle man? Make sure the company you’re looking at OWNS its product or service.
Is the product or service priced competitively in the marketplace? Is it unique? If it’s unique the value has to be there, but if there are other products like it that can be found in a place like Walmart then it better be competitively priced. Otherwise you’re just selling an “opportunity” based on hype. People don’t stick around long in those companies.
Does the company allow the distributors to market and advertise on the internet? Are there other restrictions?
Does the company have a stipulation in its policies and procedures to protect corporate from making changes to the compensation plan? Do they give the distributors voting power to overturn their decisions?
Does the corporate leadership team have network marketing experience or are they simply “corporate” decision making types? You want someone in the driving seat of the company that will make decisions in favor of the distributors, not just for the sake of keeping the shareholders “in the green.”
Is the compensation plan fair? Without going into detail here I would recommend staying away from binary and stair-step breakaway type plans. You can do your own research, but they are typically very difficult to build. The breakaway plans even force you to rebuild a leg after it reaches a certain threshold! Here is a breakdown of some compensation plans based on their point system and volume moved. I will note that it was created by our corporate management team, but is extremely accurate and fair. We often use it as a selling point in our business.
Now that you’ve determined which company you want to work with the rest is pretty simple. The fact that it is simple does not make it unimportant. In fact, what I’m going to tell you is probably THE BIGGEST thing you can do to ensure you get started right.
Guidelines For Getting Started Right
Rather than choosing a random team to partner with, find the top 3 individuals in the company you want to work with. Call them up and interview them. Of course they’re probably leaders and they will try to interview you, but that doesn’t matter. Just make sure they at least answer your questions.
When you are choosing your team make sure the team aligns with the way you want to build your business. If they primarily build offline and you don’t want any part of that then there’s no sense in partnering with them.
Set a date to get started and commit to their process. Decide how many hours per week you’re going to devote to this (should be 5-10 minimum). Learn to stay focused, be persistent, and be coachable. Being coachable is probably the most difficult thing to do. I was probably the most uncoachable person to work with in the beginning; it kept me broke.
Honestly that’s about it. Just recognize you’re going to need at least 6 months working part time to probably see results. This is NOT a get rich quick deal and anyone telling you otherwise is flat out lying to you.
I hope you enjoyed this article: “How Do You Start A Network Marketing Business?”
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