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Ok, you think network marketing is the right thing for you and you've decided to find a network marketing company that you can be passionate about; one that shares your values; one that you can make money in - now what? What do you look for in a company? How do you find one in the industry you're most interested in? How do you know it isn't a scam?
Here are some broad general guidelines to consider when choosing a company:
- Choose a company that has been in business 5+ years. It demonstrates the company is ably managed. Most network marketing company failures happen within the first five years.
- Research the company and its founders for government actions, legal difficulties, or bad press. None of these by themselves necessarily mean the company is not a good one, but can give you insight into it.
- Be wary of a company that depends on a single product. If something should happen to their supply or if the government should restrain its sale - there goes your business.
- The company you choose should match your own ethical standards of conduct. Walk away if the company uses either "high pressure" sales tactics, or if you feel manipulated into making a decision you haven't had time to think about.
- Make sure the company has a "field tested" method of training you how to be successful in the business and can also teach you how to help your team do the same. Not all training is created equal.
- Make sure you understand any monthly requirements to qualify for commissions. After you join is too late to find out you must purchase $200 a month in inventory to be eligible for commissions.
- The company's compensation plan should make sense, be fully explained and be available for review in its entirety. The devil's in the details!
- If you don't have confidence in your immediate up line (the person who signs you up), then walk away. You can't be mentored by someone you can't respect or in whom you have a lack of confidence.
- Avoid any company that talks more about recruiting additional distributors than it does selling products or services. It may be an illegal pyramid.
- Beware of companies that ask new distributors to purchase expensive inventory. These companies can collapse quickly -- and also may be thinly-disguised pyramids.
- Make sure the price you pay for the goods and services are reasonable and would represent a good value for others. You can't sell toothpaste for $5.00 a tube when most people can purchase it for $2.00 at Walmart.
- Be cautious of companies that claim you will make money through continued growth of your "down line" -- the commissions on sales made by new distributors you recruit -- rather than through sales of products you make yourself. This is one of the criteria used by the Federal Trade Commission to define a scam.
- Beware of companies that claim to sell miracle products or promise enormous earnings. Just because a promoter of a company makes a claim doesn't mean it's true! Ask the promoter of the company to substantiate claims with hard evidence. Don't be afraid to ask questions. Your future depends on it.
- Beware of shills -- "decoy" references paid by a company's promoter to describe their fictional success in earning money through the company. Scams still exist out there so be careful.
- Be wary of income based on "2 who get 2 who get 2", etc. Such examples are not statistically valid, are unrealistic and simply don't happen under normal circumstances.
- Don't pay for or sign any contracts in an "opportunity meeting" or any other high-pressure situation. Insist on taking your time to think over a decision to join. Talk it over with your spouse, a knowledgeable friend, an accountant or lawyer.
- Do your homework! Check with your local Better Business Bureau, Chamber of Commerce and state Attorney General about any company you're considering -- especially when the claims about the product or your potential earnings seem too good to be true.
According to these standards, click on the links below to learn more about the companies I highly recommend:
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