12 Critical Success Factors To Choose A Network Marketing Company
Choosing a network marketing company can be a difficult decision when you consider that the industry has grown to over one thousand network marketing companies. This article discusses twelve critical success factors required to properly choose a network marketing company.
How do you choose the right network marketing company to work with so you avoid a scam? Here are twelve critical success factors to consider when looking for a network marketing company to work with
1. Company Track Record.
Look for a company that will be there for the long term.
If the company is less than 5 years old, there is a 95% chance they will go out of business in the next 5 years. That is still at 70% until the company reaches the age of 10 years old.
2. Financially Sound
Completely debt free, with no long-term debt.
Look for a company where you are not a distributor for another manufacturer.
Look for a company that can and does finance their growth
3. Strong Management
Their management team is from a Fortune 500 background.
The management team that knows how to run a business.
4. Unique Consumable Products
Some companies sell one-time purchase items, so you are spending money you would not have otherwise spent. Look for a company that sells everyday household items that you are buying anyway.
5. Competitively Priced
The products should be competitively priced to comparative products, The products must be competitively priced so customers will continue to buy these products on a long-term basis.
6. Low Personal Production Requirements
Some companies require anywhere from $100-$300 per month, or more, in personal production. This means that you would either have to use that many products or sell it retail to friends and family.
7. High Reorder Rate
To choose a network marketing company wisely, verify that your customers will continue to order month after month, because it just makes sense to order directly from the manufacturer and save money,
8. Low Attrition Rate
Most companies have an 80% attrition rate, which means you are spending all of your time just replacing the people who are leaving your organization.
The industry average is an 82% attrition rate.
9. Low Initial investment
Many companies require a huge buy-in to join, anywhere from $200 to $1,000's.
Look for a low and refundable minimal investment to become a preferred customer and a marketing executive.
10. Timing
How long has the company been in business? How many customers do they have documented? .
11. No Breakaways
In many companies, if the person you bring into the business passes you or achieves a certain level of success, they "break away" from your organization, so you are no longer earning commission on their sales.
12. No Risk
There is no risk at all
Educating yourself about these twelve critical success factors will help you make a wise choice when you choose a network marketing company.
Learn the 12 MLM success factors here http://tinyurl.com/2fq3p3
Jon Roussel is a successful internet marketer in Beverly, MA He helps people succeed with a home based business that will generate a long term reliable leveraged residual income. Learn more at www.networkmarketing6cs.com
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