What Makes For a GREAT Opportunity? Is Zija One?
Below is a list of some famous network marketing companies….
- The Pampered Chef
- Mary Kay
Names you KNOW
I know, I have forgotten some but I am looking at very old network marketing companies There are about 100 or so companies that have really lasted the test of time (Ken Brailsford has two of the top thirty,FYI). Ironically, as much as I respect all these companies, I would never join one. The market saturation point makes it hard to build a large businessin these companies nowdays.
However, looking at these great companies, we can learn a lot about what it takes to be successful in MLM.
These network marketing companies have three things that stand out.
1) They all sell consumables. This is huge. If you want long term residual income, you need to promote products that will be purchased over and over again.
True Tupperware and Pampered Chef sell some products that you would use for years but not forever. Tupperware may last forever in theory but the plastic gets dirty and old, lids warp, and styles change.
2) They stand the test of time. Another key element is that these network marketing company’s products have remained in demand overtime. In fact, in some cases demand has increased.
3) It is interesting to note that I cannot think of one technology company that has lasted the course of time (at least 15 years of solid sales and growth). I have often thought about why technology network marketing companies have such difficulties over the long haul despite many of them having booming success short term. I have a list of three reasons why I think IT MLMs struggle long term.
- Technology is easy to copy and thus many competitors arise quickly.
- The prices of technology can drop drastically in a short period of time, making it difficult for the companies to maintain their commission structure.
- As competitors increase, it becomes difficult to distinguish the IT network marketing company’s service from what is available elsewhere. Thus customers go elsewhere.
One key question you should ask yourself when examining any network marketing company is about the longevity of the product. Now it is impossible to 100% predict the future, but in many cases you can guess that this product, service or whatever will not last.
One solution would be to join a company that has been around for a long time. This has its advantages and disadvantages. The advantage is that these type of network marketing companies will likely to continue to survive.
The HUGE disadvantage is that network marketing companies have already gone through the momentum phase and this will hurt your ability to promote them. Even if they have good products, the market is just not excited about them anymore.
For example, Amway is a great company with great products, but how often do you hear people come up to you and talk about Amway and its products with excitement in their voice? It just does not happen (unfair but reality).
I think you can tell from what I have written above, I believe if you want large success in MLM, you need to take some risk. Now risk is not for everyone but if you want to become a large earner, risk is necessary. In that case, you should join a company that is less than 7 years old (I joined Zija near the end of year 4 for that company).
If you follow my advice, there will definitely be some risk that the company will not survive but the upside is huge as well. The key is to analyze different opportunities so you understand what is potentially a good company and what is not.
You definitely want to look at the management team. Have they had success as managers? Have they had failure? What is the management team’s experience?
When considering network marketing companies, you want a company that has consumable products, that is not a “one horse product”. It is important that as far as you can tell, there will be long term demand for a multitude of products. Lastly, you need to like and believe in the products.
We all want to make money and the natural temptation is to go for the network marketing companies that pay the most. However, this is a huge mistake. Many companies have not survived because they pay out too much!
What is a good amount? It depends on the company but a good figure is 40%-50%…That is a good level that pays the distributors well but still protects the long term viability of the company.
I get nervous when a company pays out too much or too early.
There are many more factors but this article is getting too long. Do not want to bore you
I analyzed hundreds of network marketing companies and I 1000% believe I chosen the one that will be the next billion dollar MLM.