Even if the network marketing company you're considering
proves to be legitimate, your work isn't done. You still need
to do some research to make sure you're choosing the best
company for you. Here's what you need to know about a company
to make an informed decision:
1. Will it last? Many network marketing companies go out of
business soon after start-up. Look for a company that has been
around for at least two years and is debt-free. To verify the
company's financial status, ask to see a financial
statement.
"Be sure the company has sufficient capital to adequately
cover expenses," says Doris Wood, an executive consultant with
The Wood International Group, a management consulting firm in
Irvine, California, specializing in network marketing. "Can
[the company] meet its obligations for rent, products, phone and
data processing to ensure distributors are paid when promised? Can
it cover the cost of possible legal fees and day-to-day business
operations?"
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2. Are you sold on the product? "You must believe in
the product or it's doubtful you'll ever be able to sell
it," Wood says, "let alone recruit others to do
so."
3. Is the venture committed to training its distributors
for success? Many network marketers quit because no one has trained
them to run an MLM business. Because they don't know how to
sell, they don't get paychecks, quickly become frustrated and
close up shop or look for another opportunity.
Ask what kind of training programs or tools are offered.
"Look for evidence that the company pays existing distributors
to conduct workshops for its newly acquired affiliates," says
Bonnie Ross-Parker, a senior executive with The Peoples Network, an
Atlanta-based MLM company that markets a TV network, available via
satellite dish, showing motivational programming 24 hours a day.
"A solid network marketing company places a high premium on
training and support."
4. How and when will you get paid? "Beware of
companies whose compensation package requires a Ph.D. in economics
to unravel," Ross-Parker warns. "Representatives may say,
`You'll figure it out when you get paid.' That's a risk
not worth taking."
5. Does management have the necessary leadership to take
the company into the 21st century? "When researching an
opportunity, make sure the company is planning ahead to deal with
exponential growth," Smith says. Ask for background
information on the company's executives. What experience do
they have in business as it pertains to MLM? What's their track
record? Also find out what their vision is for the company. Do they
have what it takes to reach these goals?
When you're choosing a network marketing company, ignorance
is not bliss. Evaluate whether or not MLM is for you, make sure the
opportunity is legitimate, and determine whether this company will
best help you achieve your financial goals. If the opportunity
passes these three tests and sounds exciting and challenging, then
go for it!
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