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March 04 2015

Which MLM / Network Marketing Company to Choose? - 20 Aspects You need to Look Into Before Joining

Because the reputed author Robert T. Kiyosaki ("Rich Dad Poor Dad" fame) mentions in his book "CASHFLOW Quadrant", one of the avenues to accumulate wealth and be rich, (particularly designed for the middle-class people), would be to inside a good MLM / Network Marketing Company.

There are millions of MLM / Multilevel marketing (NWM) Companies, operating in many countries. Hundreds of such companies came and vanished. An advanced newcomer, without prior experience with NWM industry, it is not ea sy to understand which company you ought to be associated with. new mlm india

Listed below are the 20 aspects you should explore, before joining a NWM Company:

1. Industry Growth Prospects:
You should know with what industry the NWM Clients are operating. In the event the Company is operating in brick & mortar industry, the growth prospects might be limited, say under 15% per annum. But if the Company is run on Internet Ecommerce, then the growth will probably be faster, as Internet growth is over 30% per annum worldwide. Which is, any company done through internet contains the potential to grow twice or three times faster than the company done through brick & mortar industry. Actually, a majority of NWM information mill operating within the slow growth brick & mortar industry.

2. Promoters - Experience of NWM industry:
Discover the main background of the Promoters from the NWM Company. NWM market is a unique industry, where there are no documented management literature are plentiful for your Promoters. When the Promoters are very well proficient in NWM industry, then a most likely they may be aware of nitty-gritty of successfully managing and operating the organization in NWM industry. In the event the Promoters came in the traditional manufacturing or any other services industry and have no substantial experience with NWM industry, then the it's likely that they might be experiencing a learning curve and may even not have access to gained proficiency in successfully managing and operating their NWM Company.

3. Whether the NWM Coy is Debt-Free?:
In the event the Clients are debt-free, the likelihood is it may stay longer in the industry. A lot of the companies have accumulated debt while moving in for expansion and when there exists a slowdown in the commercial growth, many of such companies may not survive.

4. Physical vs. Virtual Products:
Determine whether the merchandise being promoted by the NWM Company are physical products or virtual products. The selling of physical products encounters additional problems of logistics and delivery. Lots of people don't want to carry the physical products for door to door selling. Further, the NWM Company may also face problems in logistics and timely receiving the products in untouched markets / geographies. These logistics problems may reduce the growth rate and expansion plans of the Company. But if they're virtual products, say internet products or services, then there are neither logistics nor delivery problems. As internet e-commerce is increasing faster, you will find better chances of higher growth for virtual services or products, after they are need based and fairly priced. Mlm Company India

5. Value for Money Products / Services:
The buying price of the products agreed to the networkers by the NWM Company should be less than the normal selling price. Suppose, the price offered through NWM is greater than the marketplace price. (This is the case with majority of NWM companies, as they have to element in the large level of compensation payable to all the eligible uplines and downlines). If the to be the case, then the best way to persuade a fresh prospect to get your Company's product? Your prospect may choose to buy the product in view market that through NWM. The critical aspect for the success of NWM may be the product pricing - it must be the worth for the money product.

6. Monthly Purchases vs. One-Time Purchase:
Many of the NWM companies make it mandatory because of its distributors (networkers) to buy their products each month (particularly FMCG products). In certain companies, a fresh member can join by purchasing these products / services only one time within their lifetime (and pay a nominal renewal fee at the end of every year). You have to calculate the overall cost of membership on per annum basis. It will always be better to pay one-time cost, as opposed to paying each month.

7. Geographical Limitations vs. Global Markets:
Most of the NWM companies be employed in the brick & mortar industry, getting physical products. Due to the logistics and delivery problems, there are geographical limitations by which you will end up required to promote the products only in certain areas / states. As these are physical products, you cannot seek prospects outside your country, as any sales outside your country are at the mercy of government regulations and on many occasions, you might be needed to obtain a regular Export - Import Code from Govt. agencies. But if they're virtual products or services, they may be sold through Internet ecommerce, where most of such Govt. controls are relaxed. So, the whole planet would become the perfect market, instead of confining yourself inside your geographic area / state.

8. Timing - Momentum vs. Stability Stage:
Every industry / Company undergoes at least 4 Stages - Formulation, Concentration, Momentum and Stability. Anybody entering a / Company, ahead of the oncoming of Momentum, stands to get a huge advantage. After the company gets into Momentum, the growth becomes exponential. However, when the company reaches the steadiness stage, then the growth rate tapers down.

9. Future Trends - Saturated or Emerging Markets?:
In the event the NWM Business is operating inside the traditional brick & mortar industry and where the market is already saturated, then the growth prospects might not be attractive. If the Clients are operating within an Emerging market, where say, industry penetration is less than 5% of course, if it is a mass consumption based market, then your future growth prospects is going to be phenomenal. As an example, when mobile phones were introduced in India about 12 years ago, only a few people could afford them, due to steep tariffs (say at Rs. 16 / minute for outgoing calls and Rs. 8 / minute for incoming calls). But with the market opening up to competition, the tariffs fell drastically and huge numbers of people started using the mobile phones. Currently, India is ranked 2nd on earth (after China), when it comes to quantity of mobile phones. Those that entered the cellular phone industry about 10 years ago have largely benefited and amassed huge income and wealth. The good news is there is certainly intense competition, and it's also challenging to make huge cash in this industry now. Hence, any communication service or product, which has future possibility of mass consumption, may have exponential growth.

10. Quality of Leadership Teams - Good Mentors:
It is popularly known that within the NWM industry, people join people. Find out the Profiles and also the Quality of one's Leadership Team. In reputed NWM companies, most of the top leaders have high academic qualifications and held top / senior management positions in big corporates (traditional companies). When they build sizeable teams within the NWM Company, they would resign from the corporate sector and be full-time networkers. For their experience in the business sector, they might have been exposed to the corporate discipline & commitment, the well laid out systems & procedures as well as the leadership skills. Such visible leaders will become good mentors in the NWM industry.

11. Training & Support Systems:
Go through the Training & Support systems how the NWM Company has. Timely and training of latest members are completely essential for becoming successful. Only a hardly any NWM Companies set up well organized Online Live Learning / Training Systems on earth. The individuals covered inside the training should not simply be on multilevel marketing, but additionally directed at imparting Personality Development, Communication and Leadership Skills.

12. Network Structure - Sunflower vs. Binary Models:
About 50 years ago when the multi-level marketing industry was started, the Network Structure mainly made up of Sunflower Model. In Sunflower Model, the upline leader may have over 100 members directly under him. Many a times, it is sometimes complicated for a leader to provide for and mentor 100 plus members. In a period of time, as the NWM Industry expanded, new Network Structures were introduced. The recent structure may be the Binary Model. In Binary, the best choice may have two teams - one on his Left and the other on his Right. The Binary Model is preferable because it is one of the fastest growing structures and in addition easier to mentor the c's members, as either side may have adequate no. of emerging leaders, who are able to care for their immediate downlines.

13. Pairs vs. Asymmetric Cycles:
In Binary plans, there are different methods of determining the Commission Cycles. Some NWM Companies stipulate a Pair because the Cycle - that's a single person around the Left-side and another about the Right-side. When a networker recruits some, he'll be eligible for the Cycle commission. But actually, generally in most from the networks under Binary Plan, one for reds will grow quicker than another. Usually faster growing side is called the Powerline. As an upline leader cannot place greater than 2 persons immediately under him directly (one on Left-side and the other on Right-side), he carries on placing additional recruits on his one-side (either Left-side or Right-side), one below another. This is whats called Powerline. In actual practice, it is difficult for any participant to complement the Pairs, as his one-side is going to be growing faster than one other. Hence some NWM Companies stipulate a ratio of, say 1:2, 2:4, 3:6 or another asymmetric ratio, for determining a Cycle. Such an asymmetric ratio is preferable for that new members, because it will ensure that even when he is able to match only half the amount of his Powerline, they can get his Cycle commissions.

14. Differential vs. Uniform Compensation Plan:
Some NWM Companies have Differential Compensation Plans, particularly under Sunflower Models. The commission payable will be the maximum for that First Level and as the downline levels carry on increasing, the commission rates carry on decreasing. Under this type of differential compensation plan, the upline leaders are prone to be self-centered - as more direct recruits placed directly under them inside the First level, the harder commissions they earn. There's no incentive for that upline leaders to position their very own prospects under their downlines, because it will reduce their compensation. In Binary Models, a lot of companies have Uniform Compensation Plans, wherein all of the upline leaders are entitled for uniform commission rate for every fellow member joining they, regardless of at which level he's placed. The Uniform Compensation Plan promotes team spirit, since the upline leaders go on placing their very own prospects under their downlines (to create the Powerline). This model motivates the new members, because they are confident of active support of their upline leaders.

15. Monthly vs. Weekly Payouts:
Some companies spend the money for commissions on Monthly basis, based on the Monthly targets achieved from the respective members. Nowadays, many companies have adopted the Weekly Payouts system. It is always better than obtain the eligible commissions on weekly basis, as opposed to waiting for the complete month.

16. High Compensation Package & Prompt Payment Record:
The foremost aspect that need considering will be the amount / rate of compensation the distributor gets per sale. Higher the compensation, better it is. Additionally it is essential to check out the compensation payment records of the NWM Company. In the event the company features a good reputation atleast Five years of prompt payment of commissions to any or all the eligible distributors without undue delays, it really is worth looking at.

17. Ceiling Amount of Commission:
All the NWM Companies have fixed a ceiling about the amount / rate of commission payable per cycle per member ID. Many companies have fixed the ceiling amount within the selection of US$ 2,200 to 5,000 (INR 100,000 to 200,000) each week per member ID. Just a very few companies have got substantially higher ceiling of US$ 35,000 to US$ 36,000 (INR 1,400,000 to at least one,700,000) per Week per member ID. Higher the ceiling amount, better it really is.

18. Targets vs. No Targets:
A few of the companies set upon Monthly / Weekly sales targets for their distributors. In a few companies, if the distributor does not achieve a minimum cut-off percentage (say 75%) from the sales target, he'll not earn any commission. This kind of target oriented product is particularly harsh about the new members, as most of them find it difficult to attain the targets inside the initial months.

19. Flush Outs vs. Carry Forward:
In some companies, (particularly in which the system of monthly / weekly sales targets are in force), all of the sales a distributor has done below the minimum cut-off percentage of the prospective, are eliminated and never carried toward the next month / week. Think about the plight of your new distributor! Many new distributors get depressed by this type of target oriented system and quit the organization within a few months. In some companies, there aren't any monthly / weekly targets and none of the sales is washed off, but carried forward indefinitely till the member achieves the commission cycle. It is always very theraputic for the new members should there be not sales targets and no-flush-outs.

20. Large No. of Huge salary Achievers:
Decision concerning aspect to consider inside a NWM Company is the amount of comfortable living achievers (say over US$ 2,200 per week). In case there are a huge selection of huge salary achievers in the NWM Company, it really is better than choose that company, as the possibility of in addition, you earning this type of high income increases.

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