Retirement Part Six

How to choose a network marketing company.

How do you choose the right Network Marketing company to work with? There are thousands of different network marketing companies to choose from.

Is Network Marketing For Me?

First, you will want to evaluate whether a Network Marketing business is for you or not. Network Marketing is an equal opportunity business. It doesn't require special degrees, unusual talents, and is open to everyone regardless of gender, race or age. However, it's definitely not for everyone! Ask yourself the following questions…


Do I Have The Time And Money To Invest In Starting A Business?

Your answer to this first, and most important question will determine whether you can realistically start a Network Marketing business: Without a resounding "yes" you will not be able to get your business off the ground. A business, even one with a very low initial investment, requires an output of time, money and energy, otherwise it cannot flourish. Money does not come rolling in automatically after you sign up (although some might want you to think it's "that easy").

Those promises made by "automated recruiters" and self replicating web pages that you won't have to talk to people are not true! Not one of the major, successful Network Marketing companies has grown through this method. Don't be fooled by ads for a "free" business, as all businesses require some tools in order to get started.

And… after all, ever seen a business without money floating around? I not.

Many Network Marketing businesses can be started for under $500, some for less and some for more. You will need to purchase a selection of products in order to experience them for yourself.

You will also have some regular overhead costs such as long distance phone service, 3 way calling service, voice mail, postage, a day planner/schedule book, as well as tapes, brochures, videos, product samples, websites, leads, or other prospecting tools. Most Network Marketing companies also require that you be a regular consumer of their products in order to receive commissions, so you will also have a monthly purchase requirement. (Usually $70-$250, depending on the company.)

Am I Willing And Able To Learn And Apply Something New?

Network marketing is a unique business. It is also at it's heart a simple business. If you have tremendous success in other areas, even in traditional business, this does not guarantee your success as a networker. You must be willing to learn an entirely new way of doing business! What you do must be able to be easily taught to others.

In Network Marketing we call this being duplicatable. When you are showing someone your business opportunity, they are thinking to themselves, "Can I do this business?" The business needs to be simple enough for the average person. Your Network Marketing business is not the place to show off your special talents, your impressive business attire, and your stunning presentation skills. Humility is a great gift for a network marketer. It will allow you to learn quickly from those who are more experienced than yourself.

Those who begin a Network Marketing business with a large ego and the need to prove their know-how have less chance for success because they are not teachable.

Am I Motivated To Succeed?

Having a "compelling why," a reason that you are doing a Network Marketing business, is essential.

Perhaps you want to have the time and financial freedom to spend more time with your family? Perhaps you want just a few hundred extra dollars per month to save for a special vacation? You'd like to pay off your mortgage? Donate to favorite causes? Travel the world? Have enough freedom to be able to not work for a month?

Whatever your motivation, it must be strong and compelling enough to overcome what I like to call "everyday inertia." What is "everyday inertia"?

It is the tendency many of us have to do the easiest things first, and to postpone until tomorrow those actions which are less comfortable, especially high risk activities like phone calls that might expose you to rejection!

Can I Handle Discouragement And Rejection?

While many people that you talk with will be excited to try your products and to hear about your business opportunity, not everyone in your life will be interested. In fact, some people will be prejudiced against Network Marketing because of a bad experience or hearsay. Some people, regardless of what facts you offer, choose to believe that Network Marketing is illegal. Some will tell you you're crazy for doing it! Some people will look down upon you or think you are silly for pursuing your dreams. Some of these folks might be your friends and family, even your spouse or children!

You must be willing to handle the inevitable opposition that you encounter from people who aren't able or willing to see the potential of network marketing. You must be able to let go of these unpleasant encounters and reconnect with your own vision and "compelling why" before deciding for a Network Marketing company.

Can I Work My Business Regularly — At Least 10 Hours A Week?

If your life is so full that you are not able to spare at least 5 focused hours a week to devote to building your business, think about re-prioritizing your schedule. What is most important to you right now? If you cannot spare at minimum that 5 hours a week, then it may not be the right time to start a business.

Your business will only grow without regular, persistent effort.

Do I Care About People? Am I Generous And Willing To Help Others?

The essence of Network Marketing is about helping others to succeed. You prosper by helping others to prosper. Without a genuine interest in the well being of others and the willingness to help them reach their goals (not your goals for them), you will not develop a strong and lasting network of loyal customers and distributors.

Some Network Marketing companies promise a totally automated business, where you won't need to talk with people. However, only a very small percentage of people are recruited without talking to a real person, and no one has ever built a lasting network marketing organization without having real conversations with people!

E-mail and Web sites alone cannot provide the face to face connection and relationship that builds loyalty and customer retention in your group. Live conversations and relationship building are what create true connection.

Do I Have Enthusiasm And A Positive Outlook?

If you expect to fail you will. Not only because you expect it — you will communicate this to your potential customers and distributors.

You must believe that success is possible. Many successful distributors have studied books on visualization and positive thinking and have attributed their success to having learned to reprogram their thoughts.

Do I Have Integrity?

In Network Marketing you are the president and CEO of your own organization. There is a responsibility in this, a responsibility to serve your customers and distributors. All those that you bring into the business will look to you for leadership and guidance. They will do what you do!

If your actions are compromising of your values and beliefs, your organization will reflect this, and you will find your customers and distributors end up going elsewhere!

Am I Willing To Persist In The Face Of Difficulty?

Many Network Marketing experts have said that there are only two ways to fail in Network Marketing: to never begin, or to begin and then give up. Many successful distributors attribute their success to dogged persistence in the face of adversity and obstacles.

What do you think now? Is Network Marketing for you?

If most of your answers to the above questions were "No" or "Well, maybe", then it may not be the right kind of home based business for you. However, if you had many "Yes" answers, then please move on! Here are some tips to assist you in choosing the right Network Marketing company for you…

Know Yourself!

Network Marketing has been called "referral based marketing." Instead of using large advertising campaigns, the network marketer conversationally markets her or his products or business opportunity in the course of everyday life… with family, friends, acquaintances, colleagues, church or school members… and then teaches others to do the same thing.

Network Marketing becomes a part of your life that is integrated with your other activities. Conversational marketing does not mean pestering, pressuring, or coercing one's acquaintances and loved ones. It does mean that you must sincerely and truthfully believe in the value of the products and the business opportunity that your company provides.

You must be a product of your company's products so that the positive results that you receive are noticeable or easily shared with others. If your company sells skin care products, use the products and experience the benefits of them. Share the benefits of your Network Marketing business with others, like more free time, great tax benefits, great team support, etc.

Separate the offer for the products from the offer for the business opportunity. This is critical! Never offer both together, or you simply scream prospects away! Or… did you ever think of selling the services of your cable TV provider? I guess not. I think you rather simply want to use their service and recommend it to others instead of selling it at the same time. Please see Kim Klaver's approach for more details on this.

You must want to share the product and business with others! Would you want to share this company's products or business opportunity with your loved ones? If not, then find another company.

In order to find a Network Marketing company that provides a product and an opportunity that you believe in, you must first know yourself… What is your passion in life? What do you care deeply about? What are your interests? These are important questions because in Network Marketing your heart, your enthusiasm, and your passion communicate themselves to others even more profoundly than the words that you use. You cannot fool your friends and family by sharing a product or business opportunity that you don't believe in yourself.

Nowadays, there are a broad range of products and services distributed through Network Marketing. By far the most popular seem to be the the nutritional companies. In the 1997 MLM Insider's list of Best Companies (chosen from the distributors point of view) all 12 companies chosen offered nutritional products.

Even today, the majority of successful Network Marketing companies provide nutritional products. Some companies like Watkins, Amway and Melaleuca offer a full range of products and services to their customers and distributors. Some companies specialize in a particular product or service, like Pre-Paid Legal Services, The Gourmet Coffee Club, or Discovery Toys.

Most Network Marketing companies fall into one of the following categories, however this is not an exhaustive list…

Nutritional/Health Products
Cosmetics
Telecommunications (long distance/satellite/internet access)
Business Services (advertising, leads, publications)
Services (legal, travel, financial/debt reduction, motivational, dental/medical insurance)
Full Service Companies (a wide range of household, nutrition, personal care, and services)
Non Consumable Items (air and water purifiers, toys, books, clothing, jewelry, coins, stamps)
Food products (groceries, gourmet food, coffee)
More companies nowadays are broadening their product lines in order to offer more benefits to their customers and distributors.

What To Look For In A Company

If you are new to Network Marketing, I strongly suggest that you choose a company that is already well established. Why? Start-up companies may offer wonderful "ground floor" opportunities, but statistics show that 85% of new network marketing companies go out of business within the first five years, most of them within the first 18 months.

Exceptions prove the rule. For example, a previous founder and CEO of a highly praised MLM company now founded a new company, offering high quality products and a solid business plan again. Such a new company certainly has a more solid foundation than a usual new company. Make sense?

As a beginner, you will have an easier time learning the business with a company and a team that is established and has in place many tools and systems for supporting it's distributors.

My own experience of working with two start up companies (one of them with amateurish behaviour) included a lot of baby mistakes that could be avoided with better planning and appropriate leaders.

Either way, once you gain some experience you may find start up opportunities with companies or teams that you trust, and by then you will know your way around the industry better to make a more informed decision.

The Network Marketing Industry is constantly in transition and the one constant in all this change is relationships. Find good mentors that you trust. Good mentoring is essential in the Network Marketing industry. It is one of the keys to your Network Marketing success.

This is a large post I know and a lot of information for everyone to digest. The next post will give you information on some of the network marketing companies out there as well as the types of products that they are marketing.

Until then keep on keeping on.