You know I have been around the network marketing industry since I joined my first company Pre-Paid Legal back in 2000. I have seen some great products and services being sold by word of mouth marketing. Who can argue that Amway, Avon, Legal Shield (formerly pre-paid legal), or Shaklee are not great companies with great products or services? I’ve personally used products over the years where I never even became a distributor and was just a customer Juice Plus, Send Out Cards, and Nerium to name a few.
What I love about network marketing is it allows people to purchase products that in most cases are better quality than what they would get on the shelf in a store. Mainly because of the distribution model being word of mouth the companies typically pay out around 50% of all income to their distributors instead of advertising agencies, wholesalers, resellers, and so on. It also allows individuals with no experience or limited experience in business to create additional income with a very small investment. But this is where it starts to unravel in certain companies and why if you are going to join a company you need to pay close attention. Because not every company out there is competing with products on the shelf. Some are just built on getting people to buy in with a $500, $1000 or even $3000 or more to get started as a distributor. Many companies even reward people more commissions if they come in at a higher level – that is the only way they can keep the deal going because they know their products wouldn’t stand on their 2 feet without big purchased from their distributors. In fact, I’m shocked that after what happened with Veema (being shut down by the FTC) and all of Herbalife’s problems that I still see this going on the industry. I see it all the time. I think a few more companies get shut down in the near future and that will put an end to the companies that front load or make distributors have to pay more money monthly to qualify for more commission. A shift is taking place in the industry, I think for the better.
You see, for a company to be successful in the long-term it cannot be built entirely by just recruiting people who are going to join the business. It must have products and services available to the general public that people would buy without a business opportunity attached to it. And this is where it gets tricky. Because as a network marketing begins the word of mouth is usually spread by distributors recruiting distributors. After awhile if the products are good and priced right many distributors who originally got into the business will just become loyal customers and the word of mouth will travel and over time there will be many customers and that is where you want to be. In fact, if you just build a business model on recruiting distributors and have no customer base your business and company is doomed over a period of time – it fall apart like a deck of cards.
So, this blog isn’t just for people who are looking at making some extra money promoting some products or services that they believe in. This is also for the company owners of network marketing companies to see that they don’t just need to bring in more distributors but to create better products that are competitively priced to compete with products that are on the shelf.
Why is price important? If you put a product in the marketplace that isn’t priced accordingly then – it better make a person fly, because if people see they can buy a similar product that’s just as good elsewhere for a lesser price – you’re going to lose a customer. It’s as simple as that. And I still believe today that most products that I see in the network marketing companies that I have come across recently are overpriced. I think alot of network marketing companies have this attitude that their products are superior to others so people should pay more money for them. That may be true, in some cases, but most products I see are not superior and if they are they are in the minority and they are companies that have been around for awhile and have built up a good customer base.
So if you decide you want to join a network marketing company before you begin marketing do some homework on the products to see if they are priced accordingly, good quality, and something you would personally buy whether or not you joined the business. Keep in mind in network marketing you are building a business for you and your family that could potentially pay you residual income for years. Don’t make the same mistake I have made in the past and join a company just because you can make money quickly – that usually doesn’t last. Ask yourself, if this company will still be around in 3 to 5 years? Is this a business that I could my mom or relatives in and sleep straight at night. If the answer to the above is YES, than you may have found your company.
If you are looking for a company that has better products, is priced right and can potentially add an additional $100, $500, or even $5000 or more per month to your families budget than definitely read the article below.
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