The Most Important Thing in Network Marketing
Posted in Watkins Business by Eldon on January 20th, 2007 What is the most important thing to consider when choosing a network marketing opportunity? Some people will push their compensation plan, and tell you how much money you can make. They will focus on percentages and payouts and will often paint a “make money fast” picture for you. In the real world, the compensation plan is not the most important consideration.
I firmly believe that the foundation, and top consideration for evaluating an MLM or network marketing opportunity, is the products. The products are not the ONLY thing to consider - company stability, longevity, and the compensation plan are all important factors. I believe that products are the first thing to evaluate for the following reasons.
1) Products must be sold for profits to be made. The products should have a strong market outside of the business opportunity - in other words, an associate should be able to retail the products to actual customers. Beware of opportunities that are a “closed loop” - those that promote self-consumption and making money by signing up other people who just consume product. As appealing as it sounds, self-consumption opportunities just don’t last. Products must be good enough, and priced fairly enough, to allow sales to those who are not participating in the business opportunity.
2) Products should be consumable, so that customers and associates reorder month after month. I have seen a few network marketing opportunities based on non-consumable products. It is harder to establish a consistent income when you have little repeat business from existing customers. Non-consumable, big-ticket items are fine for short-term profits but not so good for long-term residual income that most of us are looking for.
3) Products should be top quality. This really goes without saying. If MLM products are not top quality, or are seriously overpriced, there will be little market for them. What good is the world’s most lucrative compensation plan with the highest payouts if the products aren’t good? Certainly, in this scenario (great pay plan/poor products), some money will be made just because of the hype. The key is, the income won’t be long-term, residual income because ongoing demand for the products will not be there.
When considering network marketing or MLM opportunities, examine the products first. Are they really good quality, and fairly priced? Are people outside the business likely to purchase them at the retail prices? If the products meet these standards, you have the basic foundation for success. The next steps would be to check the company’s history, stability, reputation, and marketing plan. Do your homework, choose your business opportunity wisely, and success will be yours!
About the Author:
Eldon Beard is a Watkins Manager with Associates All Across North America
