Believe it or not! Networking Marketing or Multi Level Marketing is here to stay. It will never vanish as it is the business of the next century. However, lots of MLM companies out there are scams. In Malaysia itself, when the Direct Selling Act was enforced in 1997, more than 50% of
A company must have its products or services to sell. There is company which is promoting itself as a network company, but without any products or services to promote.
One of the ways, which is common, is that you are supposed to dumb in an initial investment, maybe $50. Then you bank-in $10 to 5 different accounts. So your uplines are getting the money from you. Then you look for you downlines to do the same. This is simply a pyramid scheme that will collapse anytime.
Thus, a good company must have its own products or services to promote, whether they’re health care products or educational services.
Its Products or Services Promote Repeat Sales Values to Create Residual Income
The ultimate goal of doing networking marketing is to build an enormous passive or residual income. If a product or service is a one-off sale & does not have any repeat sales value in it, for example Gold Coin, non-perishable product, how is it going to generate repeat residual income? Do you buy gold coin every month? So, if you don’t buy gold coin every month, do you think your uplines get commissions every month? I don’t think so.
Therefore, the products or services a company promoting preferably perishable products, such as health cares, vitamins, or maybe weight loss product. I take vitamin pills, and I buy again once finished, or services such as mentoring programs, club memberships, or even insurance. For example, every month when I pay my success mentorship fees, my gym class membership fees & insurance premiums, my uplines get commission.
Since I’m a member of those products and services company, when I promote the products and services to my friends, I get commissions. And when I promote them to the public, I’m building my residual incomes. One day, when the numbers under grown large enough, I can consider retiring.
Its Compensation Plan is Transparent, Easy to Understand & Fixed
For a person to get the maximum of out a company, its compensation plan must be easy to understand & transparent. By transparent meaning that one must be clearly explained how is the whole compensation plan works, in and out, terms & conditions, and fine prints as well.
Often, new comers are being taken advantage over the uplines. Let’s say that you had reach certain level in the company, and entitled for a profit sharing, but in the compensation plan fine prints, you must achieve certain target to get that profit sharing and you don’t know about it, resulting the profit sharing passed up to your uplines, how tragic?
The compensation plan shall be fixed as well, not changing very often. If a company’s compensation plan is changing too often, this indicated that the company is not well established yet, and it may collapse anytime, for it is still adjusting its compensation plan to benefit from it.
It is Approximately about 4 years old in Business
A company which is too new may have the possibility of collapsing soon before you know. Some may say that “you’ll have to be the No. 0001 member of the company in order to max out the profits in the company”, but have you ever think of this, if you are the No.0001, you get all of your family and friends joined and suddenly the company collapsed, then you are the one who need to answer to your friends and family.
In fact, there is always a company that is old enough in overseas but new in your area or country. Those are the one that are good choices. It has the system running already, after several years, it is still standing and earning; it has the support system to backup new members, so why not?
In conclusion, above are the few main factors that we must look into before deciding to join any network marketing either it is an ordinary