How do you assess an MLM opportunity?

There are 7 essential factors for success in any network marketing business, but before we get into that. You need to be aware that there are three major components, they are, the company you're joining, the team within that company you are joining and you.

Let's consider the company in the first instance, the 5 things that you must consider about the company they are:
1 The products and or services
2 The compensation plan
3 The experience of the management team
4 The company’s financial resources and
5 The story.

1.The product. The company you choose must have a product that delivers its promise. It doesn't matter if there is an existing market for that product but the product must have a unique selling proposition that is, It must have some way of distinguishing itself from the other players in the market. As long as the company you're choosing has a prime product that fits that category, then you'll well positioned to be able to tell a compelling story to your potential customers. The company must have a product that the potential customer feels, they must have It does not matter if there is an existing market or your new enterprise is part of a developing market. The key point is that the consumer believes that it is a vital part of their life and therefore they desire it. Any claims made for the product must be delivered to the end user in a successful and timely way, so that it creates a powerful word of mouth promotion that turns that consumer into a strong advocate for you and the product.

Too many companies over promise on their products, and then when the products don't deliver all the hard work that you've done to represent that product is undermined and you lose trust and rapport with your team members and consumers, so it is vital that you represent a company that has a product that delivers its promise.

2.The compensation plan. There are many different types of compensation plans in the direct sales industry, binary plans, stair step plans, matrix plans, hybrid plans, unilevel plans and many variations thereof. If there was one plan, that was the ideal, the perfect plan, all companies would adopt that plan; however, that is not the case. Plans like products and companies vary, and while many of them are very successful, it’s not about the compensation plan in isolation. So when you're choosing a company with a good product and you’re examining its compensation plan you have to view that plan in relation to the maturity of the company, the maturity of the market it operates in and the ability of the plan to deliver an equitable result for both the distributor and the company. Having a plan that is equitable is a vital component of the right company. If the plan does not deliver sufficient profit to the distributors ultimately they leave and the business will fail equally, if the plan does not deliver sufficient profit to the company, the shareholders leave and the company will fail. Therefore, it is in the best interests of all of the players to have an equitable plan.

Plans change because markets, government regulations and sales organizations change. Assessing compensation plans is not straight forward, however a good rule of thumb is, if the company has successful distributors (that is profitable distributors) and is long standing and profitable, then the chances are the plan is equitable and will work for you if you work it.
A complete pro forma and discussion on how you assess compensation plans is detailed in the Ultimate MLM Training Program and is also available to Premium Subscribers of the MLM Growers Newsletter.

3. Experienced management team. Joining a company with an experienced management team is of vital importance. However, quite often, distributors only view the sales experience of the management team, and while sales experience is an important factor in the development of a network marketing sales organisation, successful companies need managers experienced in finance, administration operations and logistics, information technology, marketing, customer service, manufacturing and research. Now, not all companies can afford to hire all of these specialised personnel when they begin their business, but they do need to have access to these experts and their services and have the knowledge and experience necessary to know how to use this expertise and then use this information for the growth and development of the company.

Too often, we see successful distributors start a network marketing company, and the only skill they really have is the ability to build a large network, and while this is a powerful and important part of the mix is not the only part. Building a successful sales organisation without a product that delivers its promise without an equitable compensation plan, without good administration and financial control and the ability to deliver quality products on time and so on can quickly bring a company to grief. So the quality and experience of the corporate management team is an essential component in the success of any network marketing company. When you are viewing the corporate management team you are getting an insight into the culture that values and vision of that team and the company and those values are not so much determined by what the company publishes in their corporate documents, but rather how the company staff and its executive officers conduct themselves and treat you their partners.

4. Financial resources. The network marketing industry today is a sophisticated and expensive business. And because companies can grow rapidly, they need sufficient financial resources to support that growth and development. A company that is scrambling for money to fund its growth and expansion may well make decisions about the structure of the compensation plans, product quality, margins and pricing, which are not in the best long-term interests of the company or its distributors. So to avoid the challenges that will inevitably exist when a company is forced to drive its growth from cash flow rather than from capital investment, it is best to choose companies that have a sound financial backing. Companies that have access to appropriate investment funds to support their growth and development if the need arises are always less risky than those driven solely by cash flow. Naturally, when you join a start-up company this is an area of risk. Alternatively, when you join an established company the opportunity for rapid growth is diminished, but the stability is greater.

So always, there is a compromise in some form or another when you choose your network marketing partner. Start-up offers huge potential and fast growth, but more risk of failure. Established companies offer just that, stability but usually are slower growing and a little more bureaucratic.

5. The story. There are many companies that have all the previous 4 factors and have entered the market and yet failed to realise their potential. That’s because they failed to deliver possibly the most important factor, the story (which is always linked to leadership). Many organisations fail because they do not communicate their core values or organisational promise in a clear and compelling fashion, one that enthuses the casual observer, and creates motivated and excited distributors.

Every company story is driven by the passion and vision of the corporate leaders and the field leaders, who have adopted that vision. Their passion and all their actions must be congruent with that vision and the vision must be able to be delivered. This is where your ability to discern the truth from hype will be a vital factor in your ability to assess the business opportunity. Getting the vision and passion in your heart will drive more results than any other skill.

6. Team Leadership. Once you have decided that the company you have chosen gets your tick of approval on all of the 5 factors. Then the next issue that you must address is the organisation or team within that company that you are joining. There is no doubt that is the prime key success factor for the long term ongoing growth of any network marketing business. It is the quality, passion and vision of the field leadership that drives the growth of the business and finally makes the opportunity an opportunity.

Now while your sponsor may be new to the business and may have little or no experience they are not the person that you need to be assessing. You need to be assessing the team leadership of the organisation you are joining, you're looking for a team leader that cares about their people, develops their people, grows other leaders, and coaches their team leaders, and sets inspiring and achievable goals, a team that delivers training and development support a team that demands your best and helps you deliver it.

The best way to assess, team leadership is to attend meetings and events where that team leadership is present. Again, watching how these team leaders conduct themselves and treat you and the rest of their team members will give you a clear indication of whether or not, you are in the right team. The Ultimate MLM Training Program shows you how to assess team leaders and how to develop into an effective and powerful team leader.

7. The final assessment - YOU. When you have assessed the company, discovered It has great products, an equitable compensation plan, experienced management, sufficient financial resources, are compelling an exciting story and you have joined a great team. Then, the only question to ask is what is holding you back? And usually the answer is you.

The Ultimate MLM Training Program provides you with all of the tools guides and information necessary to help you become expert at network marketing, a professional business builder and team leader who truly enjoys the benefits of a long term residual income.

E-mail: info@mlmgrowers.com