Daddy’s Upline’s been arrested!
My Dad was always looking to make money from home. Back in the 1960’s there weren’t a lot of options. He started all kinds of businesses, from bars to installing sprinkler systems, to selling tools.
But my Dad knew cars. He came across this product which would keep your car from losing traction and spinning out of control on slippery roads. This thing worked and you could make a lot of money. They cost about $500 each which was A LOT of money in 1969. So he bought 10 and stored them in the basement under a sheet. That way my mom wouldn’t find out about his new adventure.
One day the phone rang, and it was my mom calling from work.
“Karen, get the newspaper – NOW! Don’t let your Daddy see it!” (She found out anyway).
“Why?”
“Because his business partner’s been arrested. Your father’s in one of those pyramid schemes!” (Like Dad wouldn’t find that out at the next meeting?)
And that was my introduction to network marketing.
Needless to say when I began my network marketing career, I was more than a bit afraid of getting ripped off. After all, I knew that pyramid schemes were real. I literally blasted my first sponsor with over 70 questions. Poor woman! She didn’t know what she was getting into with me. Everyone else just believed what she told them. I wish I’d known about the 8 Critical Elements then! It would have made choosing a company so much easier.
We are skeptical of what we don’t know. Face it. If everyone else who is rich got that way by working 80 hours a week, and climbing the corporate ladder, or discovering the wonder widget, how in the world can you make 6 or 7 figures in a part-time business from home? Doesn’t make sense, does it?
Multi-level marketing can be a confusing business. On the surface, everybody says the same thing. And everyone claims to be legit. Even the scammers. And the “MLM truth” sites hate everything, so they’re not a big help. What’s a mere mortal to do?
Enter the 8 Critical Elements of a Primary Network Marketing Business. There are elements that every solid network marketing opportunity should have in order to give you the best potential for long term income. If your company doesn’t have them, keep looking.
Here they are in a nutshell:
1. Unique Products: You do not want to be in the position of competing solely on price. In the case of technology products, technology changes so fast, that what is hot today, is passe in a year. How will the company you are considering keep up with the market? The companies with the most stability have a broad product range, yet these products fit a central theme and focus – that is to say why would a jerky company sell skin care? Do the products deliver significant value? Are they competitively priced? Would you want to buy them if you weren’t selling them? It is better if the products have patents, in order to protect your business. How large of a market do the products serve? Are they consumable? Products with one-time-sales makes residual income difficult.
2. Company Stability: The ability to give you long-term business and financial security, based on their company and business history. It’s best if the company has been around longer than 5 years, and shown financial stability and a track record of payouts. Can the company show you the average payout as reported on 1099′s to the IRS? A publicly held company, that is traded on the stock exchange is not necessarily more stable than a privately held company. Is the company debt-free? Who are its investors?
3. Marketing System: The system to market the company must be compatible with the internet marketing techniques, and current consumer trends. Does the company have a plan for helping you build your business? how will the person (or his/her upline) train you? What kind of support does the company offer? Is the system simple and duplicatable? Network marketing is a business system for non-business people.
4. Company Management: Must be led by successful leaders in business with a vision for the future growth – not management mode. Does the company have the talent at management level to effectively keep a good product pipeline and service its distributor base? What experience do they have? What is their philosophy of business? Why are they involved in the company -did they just need a job, or are they passionate about the company’s mission?
5. Global Reach: Is the company seeking to build globally? How does it facilitate international sponsoring and training? Management must have prior experience in global expansion. Is the compensation plan the same around the world?
6. Compensation & Incentives: Is the company’s compensation plan designed to promote growth? Does it promote a balanced business? Does it pay well at entry levels? Maximize your income based on your efforts. Must payout at least 50% of sales dollar, must offer unlimited depth within compensation plan. Must offer Fast Start Bonuses, must offer other incentives and recognition. You must be able to achieve $10,000/month true residual income with less than 500 active distributors in the organization. Does the company you are evaluating document its payout with U.S. IRS?
7. What is the company’s history with regulatory agencies? You can contact the Attorney General’s office in your state (if in the U.S.). Is the company registered? What kinds of issues have they had. Were they resolved? For a quick search, put the company’s name you are considering along with “FTC” in a search engine. See what comes up. Is the company in good standing with the Direct Sales Association or other industry groups?
8 . Pay-It Forward: What is the company’s charitable work? What kind of publicity does the corporate office generate? Are their products and policies ethical? Socially responsible? Is the company’s vision is to make an impact on the world in a positive way. Do they encourage significant charity corporately and amongst their distributor base?
If your company can meet all 8 of these critical elements, you have got a company that you can build on.
© 2007 Karen Hurd Enterprises, Inc. All Rights Reserved.
About the Author:
Karen Hurd has been a full-time network marketer since 1988. She is a writer, teacher and wellness educator.
She lives in Virginia Beach with her husband and 5 children. She built her business during her children’s naptime, and now she makes money in her sleep.
Karen can be reached at: karen@womanwize.org
Her website: http://www.womanwize.org
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