Rev Walter Mwambazi's Blog
In spite of what the naysayers and critics may have to say about the industry, network marketing has grown into a respectable size and generates more income annually than the film and music industries combined. In fact, network marketing currently matches the income generated by the gaming industry, that being just under $200bn a year!
This industry has been endorsed by leading entrepreneurs of the day including but not limited to Sir Richard Branson, Bill Gates, Warren Buffet, Robert Kiyosaki and even President Donald Trump and of the list mentioned, some have even opted to invest in the industry too!
Like any other business, network marketing is “work” and will require the same attention and focus any other business requires. The unfortunate part for most people is that they were wrongly started or had gross misrepresentation from those who hardly understand the business itself and opt to use half-truths and exaggerations as a way to “recruit” peoples.
Besides all that, as an entrepreneur, I wholeheartedly recommend it. But before you get there, like all good habits, a bit of due diligence would be in order. For those of you not too familiar with the term, due diligence is the investigation that a business or person is expected to carry out before entering into an agreement or contract with another party or in this case, signing the dotted line and paying to start your network marketing business.
There are four things you must consider before you make your investment. These are critical to ensuring your long term success. It really does matter which company and leadership you get into. These four are the company, the pay plan, the position and the leadership.
Be careful with which sector of MLM you get into. Statistics show clearly that the most successful distributors and companies are in the anti-aging, skin care, health and wellness sector. These have consistently produced long term powerful and great income generating companies as well as income earners. This sector also consistently has the largest share of the entire business.
Furthermore, you must also ensure the company has solid business founders and systems, processes and tools to assist you build your business well. After all, you are leveraging off a large company so its critical systems exist and are robust and tested.
The company should also be preferably DSA (Direct Selling Association) or BBB (Better Business Bureau) registered and also have been in existence for at least 5 years. The top leaders (earners) should be at least among the DSN top 200 earners in the world. If they are not there but boast of being in existence for long (anything above 5 years), it means their “breakage” is terrible and you want to steer clear! Breakage can be defined as the amount of money that potentially would be coming your way had you been in a different and more favorable pay plan (more later).
Also, be weary with any company whose administrative work (processing orders and registrations, product importation and clearance as well as distributor management) is done by distributors rather than their own employees. This is an Achilles Heel and is a recipe for disastrous ends. Just avoid joining such companies until this part is being fully handles by company employees or agents.
The Pay Plan
If the company does not have a Binary System, it’s pretty much ancient and will make you work your back side off only to have most of your income go to the company. Binary is without doubt the best Pay Comp plan today. However, you need to understand some critical truths.
What is the cycling bonus? How many cycles a week? At what level is it capped? Do they pay any matching bonuses? Is there a leadership/royalty sharing pool? And most importantly, how is payment made? What systems do they use to pay? Are you interacting directly with the company or through third party agents or worse still the actual distributors themselves?
These are huge factors that can make a difference between success and failure.
What level are you coming in at? What is your timing? At what evolutionary stage of their growth trajectory is the company? Growing? Plateaued or declining? It’s the difference between riding a wave based on critical mass being achieved at the start or else, finding a company on its way down which will mean being stuck.
In my opinion, this is the “x” factor that can be the difference between 10x'ing your business and really growing into great income, or being stuck in MLM limbo. If you have a lousy leadership, even if the company, products, comp plan and position are great, it won’t help you much. So, the leadership for me is the ultimate factor.
Don't just join anyhow, especially if you are a professional. You want leaders that are making a huge difference with their support systems. That is the “x” factor that leads you to great incomes!
If you are reading this and really want to learn further about this business in a clear and concise way with no hot air or exaggerations, then simply click here.
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Rev Walter Mwambazi
Author of "The 7 Principles for Financial Prosperity", Life Coach, Facilitator, Peak Performance Coach, Digital Marketing Professional, Network Marketer, Health & Wellness Consultant, Pastor, Copy Writer, Motivation Speaker & Writer.