10 tipps to choose the right network marketing company

59

By 3gteam

Your business grows with the right compensation plan

Choosing your MLM business partner

You should consider 10 important points before decide on a network company

  1. Only one price list
    Make sure that your partner company's products are sold to each customer / partner at the same price, no matter what level is reached. You see this feature very simple: There is only one price list! So no shopping and retail price list. This has important advantages:
    • It can be distributed much more commission
    • There is no selling, no stock, no shipping. This is all done by the business partner
  2. Growth potential
    It should be a market where no market saturation is present. If you have a market that is not saturated yet, it also has a larger growth potential. An example is my business partner in the health market they produce natural food supplements. The US has many companies in this market sector but the point is my company has natural ingredients only and its experience goes back to 1936. This means that you can find more people who have never dealt with the topic of health prevention but on the other hand they like natural products.
  3. A fair compensation plan
    Another crucial factor is the compensation plan. If you only earn much money, if you have already built up a very large network, then you need even more patience to stay in business. Often this is the reason why many Networker stop. Here is a small example of the remuneration schedule over 2 levels, as it is built up with my partner company:

    If I have 4 partners in the first level, and these in turn have 4 partners and each ordered for $100 per month, then my bill looks like this:
    Level 1: 4 x 100 - = 400.- turnover (my commission is 5%) -> My credit is 20.-
    Level 2: 16 x 100 - = 1600 .- turnover (my commission is 25%) -> My credit is 400.-
    I make $420. -

    It is therefore my opinion, how much you earn from the beginning that you stay in the network. How is your credit in this example?

  4. Beware of new MLM companies
    There are many companies in network marketing. The problem is that if you build a business in network marketing and you like to make it your source of livelihood, you rely on the partner company. You will finally have a lot of time and money invested in building up your business. So you have a big risk when you join a brand new company. Imagine, the company is growing very fast ... that's usually the "off" for these companies because they cannot grow as fast. It created financial problems and the company is illiquid very quickly. Therefore, I can advise you to exercise caution.
  5. Trust
    Some network companies make statements that the customer believes the advertising industry. However, I think this is incorrect. Think about how you react to advertising... for example when I see on television advertising (which incidentally is rare), I turn around immediately. I do not know anybody, except maybe an advertizing specialist, that looks at advertising voluntarily. That is why I give no attention and no confidence to the advertising. In my opinion it plays a major role as someone is informed about a new product. The main condition I refer to an existing trust. That is why you give a recommendation a lot more attention than any other type of advertising.
  6. Price comparisons with traditional market
    The cost argument is of course understandable, especially in today's world where not everyone has a lot of money left over. But in my opinion there must be a very different idea in the first place. In fact if you want to build a business, you have to invest, no matter what industry you work. Now they think about times where you can build a business for $50.- per month? In addition, you will receive quality products in this "investment". From the business perspective it is not that much. Other than this, there are price studies, where network marketing companies are cheaper than the ordinary retail.
  7. Uniqueness of an MLM partner company
    Based on my experience every network marketing company is unique in its own way. Even if the products are offered in the same market, the companies do always distinguish. But every company must offer products that are unique. But more important is the team spirit. You have to feel comfortable and get along well with people, even in hard times. Therefore, a business which is purely offered over the Internet does not work very well.
  8. Team work
    Teamwork is so important. For this reason events are very important where people meet and exchange. It is perhaps about product training, personal development or a sporting event ... I can only tell you that every time such events are coming up I am really happy and really enjoy exchanging experiences with others. Finally, I want to learn something ... that is what makes it interesting.
  9. First Line Bonus
    Your partner should not get the feeling that you want to earn of them. Therefore, the compensation plan should be designed to match. That means from the first level you should not receive more than 5% of their sales as commission. That is a so-called friendship bonus.
  10. MLM on the Internet
    Today the Internet is increasingly important for network marketing. Many companies make nice presentations and argue why their business is the best one. Be careful! Question these commercials. Often claims are made to leave your own business better there.

I look forward to your comments!

All the best!
Daniel Boscheri

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