Monthly Archives: April 2017

The Best MLM Companies Have 5 Things In Common

The best MLM companies all follow the same pattern.Someone may have already contacted you about a network marketing opportunity, or you may be considering purchasing one of the their products. I’m going to tell you about what to look for in an MLM company, the management team, the science behind the products, the compensation plan and the timing of the overall opportunity.This last part, the timing, is the reason to look very closely right now at a qualified network marketing opportunity.
The Company – A network marketing company sells products through a network or “multilevel” marketing business model. This model is but one of many that have come into more favor as the economy has tanked. More people are looking for alternative ways to make money from home. Network marketing, much like online marketing has undergone very close scrutiny and ever evolving legislation that has forced a higher level of quality and begun flushing out the crooks and “flim flam” con artists. As a result of this scrutiny, they have become infinitely more accepted as mainstream alternatives to conventional business models.
The Management Team – A primary requirement behind the best MLM companies around today is the experience of the management team. You should look for evidence that each of the co-founders have held executive positions in corporate governance at other successful network marketing companies and ideally corporate governance in multiple industries. Without this, you’re investing in someone else’s experiment.
The Science – Unlike most MLM companies selling products, the best MLM companies represent products that offer excellent value with patented scientific studies to support their efficacy. Most MLM companies sell “experience based” products without any specific scientific studies to support their claims. The fact that some unknown person seems to think that a certain pill had a pleasant effect does not a company make.
The Compensation Plan – The best MLM companies use compensation plans that adhere to a basic binary business model. In the binary model, new organization members are introduced into a Binary Tree structure, or a left and a right subtree. Normally, one subtree is referred to as a Power Leg while the second subtree is a Profit Leg. The Power Leg structure has automatic placement of new members, even by members previously enrolled, or ancestors, to the current member. Since any new members must be placed below their enrolling member, they naturally must fall to an available leaf node of the Binary Tree. Order of placement is determined by cooperation of the enrolling member and his nearest ancestor. The Profit Leg of the Binary Tree normally contains those new members who are personally enrolled by the member. Some members below any node on the tree are automatically placed by a member’s ancestor, while other subordinate members are placed at a specific location in the tree by the member himself. In addition they might pay commission 7 levels deep. 7 levels would make their plan unique and potentially quite rich depending on one’s individuals work ethic. In ANY compensation plan, the reality is that you need to work hard to get a customer base initially and drive referrals from that and then leverage your new found reputation.
The Timing – Timing is everything in business. Here’s the deal with timing and network marketing. Network marketing companies typically go through a period of growth called “momentum” in the industry. This is a level of revenue in the $4,000,000 to $6,000,000 per month range. At this point, MLM’s either fail, peak or grow exponentially. This is based on a simple look back at the few successes in the MLM industry. Go look for your self at the historical data. If an MLM company is generating slightly less than this level of revenue and is projected to hit this level within the next 12 to 24 months, anyone who has bought in before then will expect to expand his business at roughly the same rate as the company itself. At that point it becomes math. Really interesting math.
The Business Opportunity You can choose to sell a company’s product line as an affiliate retailer or you can become a distributor by paying an initial start-up fee and then maintaining a monthly auto-ship of products for your own use. This is pretty standard practice for all the best MLM companies. Auto-ship is the back-bone of the business model. Once a level of momentum is achieved with only a few successful sales, income levels can increase dramatically with continued effort.Is It For You? If you feel that your opportunity is one of the best MLM companies based on all these factors, then it’s time to make a decision. However, even though this is the case, the company, the products and the compensation plan won’t guarantee that you will have success. In fact, unless you learn how to become a professional marketer and generate a steady stream of quality leads to speak with about your MLM, you’ll just end up being another casualty of the industry.Pitching your friends and family will only take you so far. With this strategy alone, most people last between 6 and 8 seconds. And the funny part is that you don’t need to “pitch” anybody. If you don’t have substantial, fact-based results to back up your claims, then you shouldn’t be selling the products you’re selling in the first place.You state the facts and let people decide for themselves. If you can get support from key leaders in the company when people need to hear more, all the better. At this point any company could fail, no question, it could peak, no question. It could also blow the doors off the building and prove to be one of the best MLM companies in the history of network marketing.Do your homework and decide in a timely fashion.