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Follow on Google News | How to select the Right Network Marketing CompanySelecting a stock like Warren Buffett means you evaluate the company before you buy it, the same goes for selecting your network marketing company. Here are some things to consider.
By: Lance Langenhoven ============================================================ Well, if you were picking a stock you might have the following 4 criteria: - Know how the company operates and understand the business. Buffett didn't want to invest in Microsoft because he wasn't sure about the technology. Peter Lynch (author of "One up on Wall Street") says "buy what you know". - Buy only those companies that have stood the test of time i.e. most start-ups fold within two years. - Don't buy companies that have too much debt. - Buy a company with good management So, if those are a few of the guidelines for investing in a stock or rather a company (which is the best way to look at a stock... you're essentially buying a part of a company) then how does that equate to your decision regarding a network company to be involved with? 1. Know how the company operates and understand the business. =================================================== So.... is it like pulling teeth to get the compensation plan? When you go to the company's website is it clear what they're doing and what they're selling. Is the product simple and easy to understand? Does the product make sense? Would you buy it if it were not part of a network marketing opportunity? A friend of mine belongs to a network marketing company that sells an electricity. The problem is that electricity is a commodity and is selected primarily on price. So, if you're not the cheapest, then your customers are not going to hang around! 2. Buy only those companies that have stood the test of time. =============================================== I found out the other day that since 1950, of the thousands of network marketing companies that have been started, only 50 have celebrated their 10th birthday!!! (source: http://www.nexera.com/ 3. Don't buy companies that have too much debt. ===================================== When companies operate with a lot of debt it becomes more tricky to stay in business. Many network marketing companies are private so this information is not always readily available. But, you could question management. If you find a network marketing company that is debt-free that is a good sign that it is built on a solid foundation. It will take a lot to knock a company like that out of business! When distributor checks don't show up when they should that is often a clue that there are money management problems. 4. Buy a company with good management. ================================= Good stock analysts will often visit the company headquarters and speak to management. You can do the same! Well-run network marketing companies welcome visits from distributors. Or, at least, they should - distributors are their sales team after all! The more "open book" the company is, the better. Companies that have secrets or that avoid giving straight answers to straight questions should be avoided. WHAT OTHER CRITERIA SHOULD YOU CONSIDER? =========================================== Besides the "company" criteria and evaluating whether it's going to be around long enough for you to reap the benefits of a long-term commitment there are a few other important criteria that you should consider: 1. Will this fit my lifestyle? ==================== Most people involved with network marketing companies are doing this part-time. It's how you start out in the business and it's not advisable to go full-time with a network marketing company until your residual checks are at least equivalent to your full-time income. For many people it is always a part-time income, they just don't have the drive to make it a full-time career. So, let it complement your existing lifestyle. If you don't have the time to do home parties or attend weekly gatherings at hotels then maybe you shouldn't join a network marketing company that grows the business using that kind of format. 2. Do you believe in it? ================= This is probably one of the most important questions to answer. If you love the product and would be a constant user of it whether it was part of a network marketing company or not that would count a long way towards your decision as to whether you should become a distributor for that company or not. Your excitement and belief about the product is what will transfer to your friends, family and people you meet and they will want the same benefits that you've derived from it. 3. Culture. ======== This is a tricky one sometimes to define but it is supremely important. Basically, what kind of people are a part of the company? Do these people strike you as being honest or are they fast-talking, slick salespeople? Summary. ======== So, do some homework before jumping into the first network marketing company that comes knocking! It's an exciting part-time opportunity but it is a business with serious potential so you don't want to waste your time with a product or company that you do not believe in and are not fully committed to. # # # About SendOutCards: SendOutCards is an online greeting card company based out of Salt Lake City, UT. Users select cards from an online application, write messages in their own handwriting and sign them with their own signature. The company then prints them, stuffs them in an envelop and mails them out. The company (in it's current form) was formed in 2004, is debt-free and has grown it's revenue every single year. http://www.sendoutcards.com/ About Lance Langenhoven: Lance has been a distributor with SendOutCards since June 2008. He is a full-time real estate professional but has found that it's possible to build a part-time residual income through network marketing. He loves to connect with new people interested in the business and has met many new friends through it as well. You can give him a call @ 832-483 8655 or you can connect to his SOC Facebook page where his fans get weekly updates: Go to: http://www.facebook.com/ End
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