Which MLM / Multilevel marketing Company to decide on? - 20 Aspects You Should Look Into Before Joining
Because the reputed author Robert T. Kiyosaki ("Rich Dad Poor Dad" fame) mentions as part of his book "CASHFLOW Quadrant", one of many avenues to accumulate wealth and be rich, (particularly meant for the middle-class people), is to join a good MLM / Network Marketing Company. mlm news india
There are many MLM / Network Marketing (NWM) Companies, operating in lots of countries. A huge selection of such companies came and vanished. An advanced newcomer, without prior experience in NWM industry, it is difficult to know which company you should be associated with.
Listed here are the 20 aspects you ought to look into, before joining a NWM Company:
1. Industry Growth Prospects:
You should know in what industry the NWM Clients are operating. When the Clients are operating in brick & mortar industry, the growth prospects might be limited, say lower than 15% per annum. However, if the Company operates on Internet Ecommerce, then a growth will probably be faster, as Internet growth is finished 30% per year worldwide. That is, any organization completed by internet has got the possibility to grow twice or 3 x faster than the business completed by brick & mortar industry. In reality, a lot of NWM companies are operating inside the slow growth brick & mortar industry.
2. Promoters - Experience in NWM industry:
Read about the main background of the Promoters from the NWM Company. NWM market is a distinctive industry, where there are no well documented management literature are plentiful for that Promoters. When the Promoters are well proficient in NWM industry, then a it's likely that they could be aware of nitty-gritty of successfully managing and operating the business in NWM industry. If the Promoters have come from your traditional manufacturing or other services industry and have no substantial experience of NWM industry, then your most likely 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. If the NWM Coy is Debt-Free?:
In the event the Business is debt-free, the probability is it may stay longer in the industry. The majority of the companies have accumulated debt while planning for expansion and if there is a slowdown in the industry growth, many of such companies may not survive. Mlm Company India
4. Physical vs. Virtual Products:
Find out if the products being promoted from the NWM Company are physical products or virtual products. The selling of physical products encounters additional problems of logistics and delivery. Many individuals should not carry the physical products for door to door selling. Further, the NWM Company may also face problems in logistics and timely delivery of the products in new markets / geographies. These logistics problems may reduce the growth rate and expansion plans with the Company. But if they're virtual products, say internet services or products, then there are neither logistics nor delivery problems. As internet e-commerce is growing faster, there are good chances better growth for virtual products or services, after they are need based and fairly priced.
5. Value for Money Products / Services:
The price of the products offered to the networkers through the NWM Company needs to be much less than the normal selling price. Suppose, the purchase price offered through NWM is more than the market price. (This is actually the case with most of NWM companies, because they need to element in the large quantity of compensation payable to any or all the eligible uplines and downlines). If the is the case, then ways to persuade a brand new prospect to buy your Company's product? Your prospect may choose to purchase the product in the open market that through NWM. The critical aspect for the success of NWM will be the product pricing - it ought to be the worthiness for money product.
6. Monthly Purchases vs. One-Time Purchase:
Most of the NWM companies ensure it is mandatory because of its distributors (networkers) to purchase their products on a monthly basis (particularly FMCG products). In certain companies, a brand new member can join by buying these products / services only one time in their lifetime (and pay a nominal renewal fee at the end of every year). You need to calculate the all inclusive costs of membership on per year basis. It is always preferable to pay one-time cost, as opposed to paying each month.
7. Geographical Limitations vs. Global Markets:
Most of the NWM companies operate in the brick & mortar industry, getting physical products. As a result of logistics and delivery problems, there are geographical limitations through which you will be necessary to promote the products only in a few areas / states. As these are physical products, you can not seek prospects outside your country, as any sales outside your country are subject to government laws and regulations and also on many occasions, you may be necessary to obtain a regular Export - Import Code from Govt. agencies. But if they are virtual products or services, they could be sold through Internet ecommerce, where the majority of such Govt. controls are relaxed. So, the whole planet would become the perfect market, instead of confining yourself in your neighborhood / state.
8. Timing - Momentum vs. Stability Stage:
Every industry / Company undergoes a minimum of 4 Stages - Formulation, Concentration, Momentum and Stability. Anybody entering the industry / Company, ahead of the onset of Momentum, stands to achieve a huge advantage. After the company gets into Momentum, the development becomes exponential. However, once the company reaches the steadiness stage, then your growth rate tapers down.
9. Future Trends - Saturated or Emerging Markets?:
In the event the NWM Company is operating in the traditional brick & mortar industry and where industry has already been saturated, then your growth prospects is probably not attractive. If the Business is operating in an Emerging market, where say, the market penetration is less than 5% and when it is a mass consumption based market, then the future growth prospects will probably be phenomenal. For example, when mobile phones were introduced in India about 12 years back, only some people meet the expense of them, as a result of 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 thousands of people started using the mobile phones. Currently, India is ranked 2nd in the world (after China), with regards to number of cellphones. Those who entered the mobile phone industry about ten years ago have largely benefited and amassed huge income and wealth. The good news is there's intense competition, and it is challenging to make huge cash in this industry now. Hence, any communication products or services, that has future possibility of mass consumption, may have exponential growth.
10. Quality of Leadership Teams - Good Mentors:
It really is popularly known that within the NWM industry, people join people. Get 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 might resign from the corporate sector and turn into full time networkers. For their experience in the organization sector, they might have been exposed to the business discipline & commitment, the well presented systems & procedures as well as the leadership skills. Such high profile leaders will become good mentors inside the NWM industry.
11. Training & Support Systems:
Consider the Training & Support systems that the NWM Company has. Timely and training of new members are completely essential for achieving success. Merely a hardly any NWM Companies have established well organized Online Live Learning / Training Systems on earth. The topics covered inside the training should not simply be on network marketing, but additionally aimed at imparting Personality Development, Communication and Leadership Skills.
12. Network Structure - Sunflower vs. Binary Models:
About Half a century ago if the multi-level marketing industry was started, the Network Structure mainly comprised of Sunflower Model. In Sunflower Model, the upline leader may have over 100 members directly under him. Quite often, it is not easy to get a leader to look after and mentor 100 plus members. During a period of time, as the NWM Industry expanded, new Network Structures were introduced. The latest structure may be the Binary Model. In Binary, the best choice will have two teams Body on his Left and the other on his Right. The Binary Model is preferable because it is among the fastest growing structures as well as much easier to mentor the team members, as both sides may have adequate no. of emerging leaders, who is able to care for their immediate downlines.
13. Pairs vs. Asymmetric Cycles:
In Binary plans, there are different types of determining the Commission Cycles. Some NWM Companies stipulate moobs because the Cycle - which is one individual on the Left-side and yet another around the Right-side. The moment a networker recruits moobs, he'll be eligible for the Cycle commission. But actually, in many of the networks under Binary Plan, one side will grow quicker than another. Generally the faster growing side is called the Powerline. Being an upline leader cannot place more than 2 persons immediately under him directly (one on Left-side and another on Right-side), he carries on placing additional recruits on his one-side (either Left-side or Right-side), one below another. This is called Powerline. In actual practice, it is sometimes complicated to get a new member to complement the Pairs, as his one-side is going to be growing faster than another. Hence some NWM Companies stipulate a ratio of, say 1:2, 2:4, 3:6 or some other asymmetric ratio, for determining a Cycle. This asymmetric ratio is preferable for your newbies, because it will make sure that even though they can match only half the amount of his Powerline, they can get his Cycle commissions.
14. Differential vs. Uniform Comp plan:
Some NWM Companies have Differential Compensation Plans, particularly under Sunflower Models. The commission payable will be the maximum for your First Level and because the downline levels carry on increasing, the commission rates carry on decreasing. Under this kind of differential compensation plan, the upline leaders are susceptible to be self-centered - as more direct recruits placed under them inside the First level, the greater commissions they earn. There's no incentive for that upline leaders to position their particular prospects under their downlines, because it will reduce their commission rate. In Binary Models, most companies have Uniform Compensation Plans, wherein all the upline leaders are entitled for uniform commission payment for each fellow member joining the c's, no matter of which level he is placed. The Uniform Pay plan promotes cohesion, because the upline leaders continue placing their very own prospects under their downlines (to create the Powerline). This model motivates the brand new members, as 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, in relation to the Monthly targets achieved by the respective members. Nowadays, many companies have adopted the Weekly Payouts system. It will always be preferable to obtain the eligible commissions on weekly basis, rather than 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's. It's also essential to research the compensation payment records of the NWM Company. When the company features a good history of atleast Five years of prompt payment of commissions to all the eligible distributors without undue delays, it's worth considering.
17. Ceiling Amount of Commission:
Every one of 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 in the range of US$ 2,200 to five,000 (INR 100,000 to 200,000) weekly per member ID. Merely a hardly any companies have got substantially higher ceiling of US$ 35,000 to US$ 36,000 (INR 1,400,000 to at least one,700,000) weekly per member ID. Higher the ceiling amount, better it's.
18. Targets vs. No Targets:
Some of the companies set upon Monthly / Weekly sales targets for their distributors. In certain companies, when the distributor fails to gain a minimum cut-off percentage (say 75%) of the sales target, he can not earn any commission. Such a target oriented system is particularly harsh about the sign ups, as the majority of them battle to achieve the targets inside the initial months.
19. Flush Outs vs. Carry Forward:
In certain companies, (particularly the location where the system of monthly / weekly sales targets will be in force), every one of the sales a distributor did underneath the minimum cut-off percentage of the target, are flushed out and never carried to the next month / week. Imagine the plight of the new distributor! Many new distributors get depressed by such a target oriented system and quit the company within a couple of months. In some companies, there isn't any monthly / weekly targets and none of the sales is washed off, but carried forward indefinitely up until the member achieves the commission cycle. It is always good for the new members should there be not sales targets and no-flush-outs.
20. Large No. of Comfortable living Achievers:
Decision concerning aspect to consider inside a NWM Business is the quantity of huge salary achievers (say over US$ 2,200 each week). If there are hundreds of comfortable living achievers in the NWM Company, it's better to think that company, as the possibility of additionally you earning this kind of high income increases.