Which MLM / Network Marketing Company to select? - 20 Aspects You ought to Look Into Before Joining

Which MLM / Network Marketing Company to select? - 20 Aspects You ought to Look Into Before Joining

Since the reputed author Robert T. Kiyosaki ("Rich Dad Poor Dad" fame) mentions in the book "CASHFLOW Quadrant", one of many avenues to accumulate wealth and become rich, (particularly designed for the middle-class people), would be to enroll in a good MLM / Multi-level marketing Company. Mlm Company India

There are many MLM / Multilevel marketing (NWM) Companies, operating in many countries. Countless such companies came and vanished. An advanced newcomer, without prior experience of NWM industry, it is difficult to learn which company you should be related to.

Listed here are the 20 aspects you need to look into, before joining a NWM Company:

1. Industry Growth Prospects:
You have to know in what industry the NWM Business is operating. In the event the Business is operating in brick & mortar industry, the development prospects could be limited, say lower than 15% per annum. If the Company is run on Internet Ecommerce, then a growth is going to be faster, as Internet growth is finished 30% per year worldwide. That is, any organization done through internet contains the potential to grow twice or 3 x faster than the business enterprise carried out by brick & mortar industry. In reality, a majority of NWM companies are operating within the slow growth brick & mortar industry.

2. Promoters - Experience in NWM industry:
Read about the main background from the Promoters with the NWM Company. NWM industry is a distinctive industry, where there are no documented management literature are readily available for your Promoters. In the event the Promoters are very proficient in NWM industry, then a most likely they might be aware of nitty-gritty of successfully managing and operating the business in NWM industry. If the Promoters came in the traditional manufacturing or another services industry and also have no substantial experience in NWM industry, then your most likely they might be dealing with a learning curve and could not have access to gained proficiency in successfully managing and operating their NWM Company.

3. Whether or not the NWM Coy is Debt-Free?:
In the event the Company is debt-free, the probability is it may stay longer in the commercial. Most of the companies have accumulated debt while planning for expansion of course, if there is a slowdown in the commercial growth, a lot of such companies may not survive. Mlm Company India

4. Physical vs. Virtual Products:
Determine if these products being promoted from the NWM Company are physical products or virtual products. The selling of physical products encounters additional problems of logistics and delivery. Lots of people should not carry the physical products for door-to-door selling. Further, the NWM Company may also face problems in logistics and timely receiving the products in new markets / geographies. These logistics problems may slow up the rate of growth and expansion plans of the Company. But when they are virtual products, say internet products or services, there are neither logistics nor delivery problems. As internet e-commerce is increasing faster, there are better chances better growth for virtual products, provided they are need based and reasonably priced.

5. Affordability Products / Services:
The cost of the products provided to the networkers by the NWM Company needs to be less than the normal rate. Suppose, the purchase price offered through NWM is more than the marketplace price. (Here is the case with most of NWM companies, as they need to aspect in the massive level of compensation payable to all or any the eligible uplines and downlines). If this type of to be the case, then how you can persuade a brand new prospect to get your Company's product? Your prospect may choose to purchase the product in view market that through NWM. The critical aspect for your success of NWM is the product pricing - it should be the value for cash product.

6. Monthly Purchases vs. One-Time Purchase:
Most of the NWM companies make it mandatory for the distributors (networkers) to get their products every month (particularly FMCG products). In some companies, a new member can join by ordering the merchandise / services only once within their lifetime (and pay a nominal renewal fee after each year). You must calculate the overall cost of membership on each year basis. It is usually better than pay one-time cost, as opposed to paying each month.

7. Geographical Limitations vs. Global Markets:
Most of the NWM companies operate in the brick & mortar industry, dealing in physical products. Due to the logistics and delivery problems, you will find geographical limitations by which you will be needed to promote the products only in a few areas / states. Because these are physical products, you can't seek prospects outside your country, every sales outside your country are susceptible to your Government laws and regulations as well as on many occasions, you might be needed to have a regular Export - Import Code from Govt. agencies. But when they may be virtual products, they can be sold through Internet ecommerce, where nearly all of such Govt. controls are relaxed. So, the entire world would become your market, rather than confining yourself within your local area / state.

8. Timing - Momentum vs. Stability Stage:
Every industry / Company undergoes no less than 4 Stages - Formulation, Concentration, Momentum and Stability. Anybody entering the / Company, prior to the onset of Momentum, stands to get a massive advantage. When the company enters Momentum, the expansion becomes exponential. However, after the company reaches the Stability stage, then a growth rate tapers down.

9. Future Trends - Saturated or Emerging Markets?:
When the NWM Company is operating inside the traditional brick & mortar industry and where the marketplace has already been saturated, then the growth prospects is probably not attractive. If the Company is operating in a Emerging market, where say, the marketplace penetration is under 5% and if this is a mass consumption based market, then your future growth prospects will probably be phenomenal. For instance, when cellphones were introduced in India about 12 in years past, only some people meet the expense of them, due to steep tariffs (say at Rs. 16 / minute for outgoing calls and Rs. 8 / minute for incoming calls). However with the marketplace opening to competition, the tariffs fell drastically and huge numbers of people started using the cellphones. Currently, India is ranked 2nd on earth (after China), with regards to quantity of mobile phones. Those that entered the cell phone industry about a decade ago have largely benefited and amassed huge income and wealth. However there's intense competition, and it is challenging to make huge money in this industry now. Hence, any communication product or service, which has future potential for mass consumption, may have exponential growth.

10. Quality of Leadership Teams - Good Mentors:
It's popularly known that within the NWM industry, people join people. Understand the Profiles and also the Quality of your Leadership Team. In reputed NWM companies, many of the top leaders have high academic qualifications and held top / senior management positions in big corporates (traditional companies). Once they build sizeable teams within the NWM Company, they might resign in the corporate sector and turn into regular networkers. Due to their experience of the business sector, they would have been exposed to the business discipline & commitment, the well laid out systems & procedures and the leadership skills. Such much talked about leaders will naturally become good mentors within the NWM industry.

11. Training & Support Systems:
Consider the Training & Support systems how the NWM Company has. Timely and correct training of recent members are essential for achieving success. Just a hardly any NWM Companies set up well presented Online Live Learning / Training Systems on earth. The individuals covered inside the training must not simply be on multilevel marketing, but additionally directed at imparting Personality Development, Communication and Leadership Skills.

12. Network Structure - Sunflower vs. Binary Models:
About Fifty years ago when the network marketing industry was started, the Network Structure mainly composed of Sunflower Model. In Sunflower Model, the upline leader may have over 100 members directly under him. Quite often, it is sometimes complicated for a leader to maintain and mentor 100 plus members. In a period of time, as the NWM Industry expanded, new Network Structures were introduced. The recent structure is the Binary Model. In Binary, the leader will have two teams Body on his Left and yet another on his Right. The Binary Model is preferable since it is among the fastest growing structures as well as simpler to mentor they members, as each side could have adequate no. of emerging leaders, who is able to take care of their immediate downlines.

13. Pairs vs. Asymmetric Cycles:
In Binary plans, there are numerous types of determining the Commission Cycles. Some NWM Companies stipulate moobs as the Cycle - that's one person around the Left-side and another around the Right-side. As soon as a networker recruits a Pair, he can be qualified to receive the Cycle commission. But in reality, generally in most of the networks under Binary Plan, one for reds will grow quicker than another. Usually faster growing side is named the Powerline. As a possible upline leader cannot place greater than 2 persons immediately under him directly (one on Left-side and another on Right-side), he keeps on placing additional recruits on his one-side (either Left-side or Right-side), one below another. This is whats called Powerline. In actual practice, it is difficult for a new member to complement the Pairs, as his one-side will be growing quicker than one other. Hence some NWM Companies stipulate a ratio of, say 1:2, 2:4, 3:6 or another asymmetric ratio, for determining a Cycle. Such an asymmetric ratio is preferable for the new members, because it will ensure that even though he is able to match only half facts his Powerline, he is able to get his Cycle commissions.

14. Differential vs. Uniform Compensation Plan:
Some NWM Companies have Differential Compensation Plans, particularly under Sunflower Models. The commission payable may be the maximum for the First Level and because the downline levels keep on increasing, the commission rates continue decreasing. Under such a differential compensation plan, the upline leaders are prone to be self-centered - as more direct recruits placed under them in the First level, the harder commissions they earn. There is no incentive for your upline leaders to place their particular prospects under their downlines, since it will reduce their commission rate. In Binary Models, most companies have Uniform Compensation Plans, wherein all the upline leaders are entitled for uniform compensation for each and every fellow member joining the team, no matter of which level he is placed. The Uniform Pay plan promotes harmony, since the upline leaders go on placing their particular prospects under their downlines (to create the Powerline). This model motivates the brand new members, because they are confident of active support of these upline leaders.

15. Monthly vs. Weekly Payouts:
Some companies give the commissions on Monthly basis, based upon the Monthly targets achieved through the respective members. Nowadays, most companies now utilize the Weekly Payouts system. It is always better than obtain the eligible commissions on weekly basis, rather than waiting for the whole month.

16. High Compensation Package & Prompt Payment Record:
The foremost aspect to be considered is the amount / rate of compensation the distributor gets per sale. Higher the compensation, better it really is. It's also essential to look into the compensation payment records from the NWM Company. In the event the company has a good reputation atleast 5 years of prompt payment of commissions to all or any the eligible distributors without undue delays, it is worth considering.

17. Ceiling Quantity of Commission:
All of the NWM Companies have fixed a ceiling about the amount / rate of commission payable per cycle per member ID. Many companies have fixed the ceiling amount within the array of US$ 2,200 to 5,000 (INR 100,000 to 200,000) per Week per member ID. Only a hardly any companies have substantially higher ceiling of US$ 35,000 to US$ 36,000 (INR 1,400,000 to 1,700,000) weekly per member ID. Higher the ceiling amount, better it's.

18. Targets vs. No Targets:
Some of the companies set upon Monthly / Weekly sales targets for distributors. In certain companies, when the distributor doesn't acquire a minimum cut-off percentage (say 75%) from the sales target, he'll not earn any commission. This kind of target oriented method is particularly harsh on the new members, since most of them battle to attain the targets in the initial months.

19. Flush Outs vs. Carry Forward:
In certain companies, (particularly the location where the system of monthly / weekly sales targets have been in force), all the sales a distributor did below the minimum cut-off percentage of the prospective, are eliminated and not carried forward to the following month / week. Imagine the plight of a new distributor! Many new distributors get depressed by this kind of target oriented system and quit the business within a month or two. In certain companies, there aren't any monthly / weekly targets and no sales is washed off, but carried forward indefinitely until the member achieves the commission cycle. It is always very theraputic for the newest members in case there are not sales targets and no-flush-outs.

20. Large No. of Comfortable living Achievers:
Another critical aspect to look for in a NWM Business is the amount of huge salary achievers (say over US$ 2,200 per week). If there are a huge selection of huge salary achievers inside a NWM Company, it really is preferable to think that company, as the odds of additionally you earning this type of high income increases.