I. COMPANY. Within the company element there are four areas to review.
(1) Funding: Is the company privately funded by the owners. In the real estate world it would be crazy to expect financing on a deal that you had no personal capital in- especially in these times. The bank wants to see "skin in the game." Well, why would we treat network marketing any differently?
(2) Global Vision: Does the company have a global vision? With the global trends taking place and the information age making that easier than ever, make sure the global vision is present and clearly articulated.
(3) Executive Team: Does the executive team have experience in the field and in the corporate arena? If they have experience in the field (specifically, have been in the field with the company or in another company) they will make decisions that will benefit you, the distributor in the field. You'll also want to make sure this Executive team has a good reputation in the industry so that you're not dealing with any of their baggage.
(4) Does the corporate culture allow payments or up front bonuses to leaders in the industry in order to entice them to join the company? That may sound good if they do but it's completely disingenuous and creates a bad culture because it's simply not fair. All distributors should join the company on a level playing field. How would you like it if the top leaders in the company were receiving payments from the company while telling you how to build your business from scratch. Ask this question to the owners and top leaders. Some companies allow it and some don't.
II. PRODUCT LINE
(1) There are many different products and services available in the industry. How can you tell which will be the best and sustain long term growth? The product line must have emotional appeal, meaning - it must have the ability to cause you to feel better about yourself, look better or in some measurable (not just anecdotal) way improve your health. When it does that, people will consume the product regardless of your involvement.
(2) This pretty much rules out any of the companies that have technology based, service based or one time sale type products. More specifically, if you are caught in a technology based product, where do you think the price pressure is on technology? Always downward? Where do you think price pressure is for food or personal care? Always up! If price pressure is downward, the company will have to change its compensation plan DOWNWARD when that happens. There is always improvement in technology and downward price pressure. Don't kid yourself that it won't happen in your company.
(3) It must also be highly consumable and not one that causes people to change their buying habits. How many times would you purchase an alarm, water system or trip away? Once a year? A few times a year? How many times will you purchase a product that has the ability to make you look good, feel good or improve your health? - Monthly! In network marketing we create webs of self consumption that do not require your provocation and we do that very well when we participate with the exactly correct product line.
III. COMPENSATION PLAN
(1) The compensation plan must have the possibility for distributors from every background to experience immediate, transitional and long term passive income. I'm an advocate of the industry and many companies do a good job having a compensation plan in place that has the ability to create nice long term passive income, but the challenge is- how do you earn while you're building that because it takes time.
If, instead, the compensation plan has the ability to create immediate weekly income, income that pays you well in the transition to a larger organization and developing teams...and then a large long term passive potential - you have the perfect compensation plan. You also want to ask about the track record so far of new distributors.
If, for example, you ask and find out that no new distributor in the company has earned over $1000 monthly in the last few months or in their first few months - find out why. You should be able to find proof of income from some of the top and some of the new distributors.
IV. SUPPORT
Align yourself with a company that is investing their own capital and resources in great tools for you, not in a company that relies solely on the leadership (distributors) to create tools and then sell them to you. Also, if the executive team (described above) has field experience, they'll help you in the field, on phone calls and in every aspect of your business. This is perfect support and should be in place for you.
V. GLOBAL TRENDS
Is the company and product line positioned in front of some of the Global Trends taking place? For example, the Baby Boomer generation is concerned incredibly about their health. Are you in front of this Baby Boom generation that is literally a bulge moving through society and has created millionaires since they were babies. Gerber Baby Foods, the hula hoop, personal computers, golf and International Travel, for example, have all flourished in front of the Baby Boomers.
VI. TIMING
(1) If all of the above elements are in place so that you know the company is solid, you can then position yourself in front of a company that is fairly new. What does "fairly new" mean? You'll want to be in what's called the formation or concentration stage, prior to the company hitting momentum. This will enable you not only to participate but to be one of many causal factors that will push the company into momentum.
(2) You have the ability to experience a true breakthrough income when you do this. In addition to company timing, the timing of your product line in front of Global Trends is important as described in #5 above. Now, can you earn income in a stable company that has been around for years? Sure. In 2001-2004 I earned in excess of $30,000 monthly in a company that I joined that was over 18 years old and very stable. Can you create true wealth and enormous breakthrough six or seven income months in an older company?
I've yet to see it. So, if your goals are somewhat modest in the industry ($2,500 monthly or below, for example), then just make sure that the other five elements are in place and you'll be fine. If, on the other hand, you want to create huge wealth, you'll want element #6 - timing, to be in place.
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