With thousands of network marketing, direct sales and multi-level marketing opportunities to choose from, finding the right one is daunting at best and should be done with due diligence. A quick screening method is to check if the company is a member of the Direct Selling Association (DSA), which is the national trade association of major companies that manufacture and distribute goods and services that are sold directly to consumers. If a company is not a member, your first step would be to contact the DSA to find out why.
As you browse the internet looking for business opportunities and more importantly ways to evaluate them, you will find many sites and blogs that offer “objective reviews” for MLM and network marketing companies. Some will offer, for a small price, “the secrets” to finding the right trading opportunities. Eventually, you’ll realize that these sources, while helpful in gathering information, are usually trying to sell you their business opportunity.
In my own selection process, I started with a list of objective criteria that any savvy investor or entrepreneur has used when evaluating a business. Successful entrepreneurs and investors like Trump and Buffet will tell you that for any business to be successful, certain key elements must be present:
Market demand. There has to be a demand for the technology product being offered. If people don’t want them, it won’t matter what you do. Nobody will buy them. Do the products or technology address an emerging trend that will mean growing demand or are they just a “me too” solution to an aging market trend? Are the trends supported by demographic developments? For example, a predominant demographic group today is the 85 million Baby Boomers who are aging and looking for ways to look, feel and stay young.
Exclusiveness. Many of today’s most popular new products and technologies have been introduced through direct sales or network marketing companies. Again, with thousands to choose from, you might as well narrow it down to those companies that have a “big moat.” That is, companies that offer products and technology that are not only exclusive to that company, but where there is little or no competition. If you can legitimately say “we’re the only company that offers this,” then you have an immediate advantage.
Rock solid company. You can have the best products in the world that everyone wants, but if the company can’t ship the products, pay your people, tell you what’s going on with your business, keep accurate records, and send the checks on time, it all falls apart. . . Only companies that have a well-documented track record over several years should be considered. Better yet, consider publicly traded companies because the SEC requires full disclosure and transparency of all financial information. Be careful though, as some companies may go public, and yet their share price and earnings projections indicate very low investor confidence. One way to weed out all but the most financially stable companies is to highlight those that have a Dunn and Bradstreet rating of 51A, which is another indication of their profitability and creditworthiness.
Right moment. The golden moment in the market is when exclusive and patented technology meets the growing demand of an emerging demographic. When you find a strong company or organization that can help you enter that market with the right product, the right training, and the right support, you may be in the right place at the right time.
Seizing the Opportunity. A key element of direct sales or network marketing that sets it apart from a standard small business is the ability to leverage your time to create residual income. Most of our lives we have earned income by exchanging time for money. The right business model for network marketing allows you to leverage your time so that you can generate your income through the efforts of others in your own organization. The more people you help make your organization successful, the more residual income you can create.
The bonus element: duplicable business model. When all other criteria are met, a close examination of the business model should be the final determining factor. Other than “start-up cost,” include the time it takes to get your new business up and running to the point where it’s generating revenue. While training, support, and mentoring are important, if the model or system employed is not easily repeatable, not only will you have a hard time starting your own business, but you’ll have a very hard time launching people under you. This would be disastrous and a waste of all your resources.
Once you’ve narrowed down your options, take a close look at the deal building system. It should be a simple three to five step process fully supported by effective marketing materials and administrative support. These days it would be nearly impossible to run a business without a website; Therefore, make sure that the company provides a free replicated website that can be used as your Internet base.
By applying these criteria, consistently and objectively, across the universe of companies offering direct sales or network marketing opportunities, you’ll find that the field shrinks pretty quickly. I can tell you that, in my own evaluation, the list of companies was reduced from thousands to less than a dozen that had at least 4 of the 5 items. Only a few had all 5.