Q:
I'm looking at several network marketing businesses and
can't decide which one is best for me. How important is the
product in my decision?
A: The
most successful independent distributors have developed the skill
of choosing the right company with the right product at the right
time. You know the saying "timing is everything"?
It's especially true in the business world. Your ability to
identify new products or trends can accelerate your potential
financial success. This is especially important if you want to
place yourself at the beginning of the lifecycle of exciting, new,
easy-to-sell products.
Of course, every company will tout its products as the latest
and greatest. But we all know how critical timing can be in terms
of achieving your "short cut" to financial independence.
Last year's hot item may be this year's "me too"
product in the highly competitive world of copycat marketers.
Before investing your time and money into a new company just
because of a new product, make sure the product is truly unique.
Finding out too late that you have numerous competitors can make
the difference between a fun-filled experience and plain old hard
work.
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New product ideas and concepts must be based on an accurate
assessment of consumer needs, wants and expectations. A company
generating new product concepts and marketing systems has to
properly position the product to create enthusiasm among its
distributors. Finding exciting new products should be a high
priority for every serious distributor looking to "catch the
wave" of a new product trend.
Here are nine key questions to ask when evaluating each
product:
- Does the concept, which differentiates this product, fill a
need or satisfy a want of the customer?
- Will the customer perceive a legitimate value in his or
her purchase?
- Will the customer recognize quality in the same way he
or she does with national brand names?
- Does the product offer the customer superior performance
compared to similar products already available?
- Does the new product solve a problem for the customer
that is not addressed by similar products?
- Is there a convenience factor that places the new
product ahead of all similar products?
- Is the product consumable or does it offer some type of
residual income stream?
- Are profit margins sufficient to sustain your
efforts?
- Does the company provide you with satisfactory support
materials and sales aids to make your job easier?
If you're fortunate enough to find a company with a new
product that inspires you to answer the above questions with a
resounding "yes," the next step is to look at the
company's business model and support systems (see my previous
columns). Knowing how to ask the right questions is the most
important step in finding the answers that will help you make
educated business decisions.
Michael L. Sheffield is the CEO of Sheffield Resource
Network, a full-service direct sales and network marketing
consulting firm. He is also the co-founder and chairman of the
Multi Level Marketing International Association (MLMIA). He can be
contacted through http://www.sheffieldnet.com.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.