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Posted by Jeff in Marketing

Network Marketing: How To Choose A MLM Business

(PRWEB) October 18, 2003

Network Marketing is a lawful, original and very dynamic form of distribution. The products aren't sold in traditional way at the store but by men and women who operate their business usually from home. They present quality products of an established company assuring the support to its entrepreneurs and their clients.

As Independent Entrepreneur, you develop your own sales network. you're paid on the whole business volume of your organization. This is another particularity of Network Marketing, commissions are divided between the intervening parties instead of the traditional merchant who keeps the profit margin for himself. By this mechanism, you benefit from a residual revenue, month after month, subsequent to an initial effort, which is a lot different in a conventional store where one must constantly look for new customers to maintain the sales volume.

For the manufacturer, the advantages are also important. With the same gross profit margin as they'd've allowed to a conventional store, they get, in Network Marketing, a personalized presentation of their products to potential clients. Depending on the nature of the product, Network Marketing is sometimes the only efficient marketing option.

In its concept, Network Marketing brings solidarity, mutual help and exceptional support from its team members. Moreover, it's the most upright system known to remunerate talent and effort. Everyone has equal chances to develop an important organization, if desired.

Other names are used for the same commercial activity, such as VRC (vente par réseau commercial) in Europe and MLM (Multi Level Marketing) in the USA. However, in the past, Network Marketing has been wrongly associated with pyramid schemes that are illegal in several countries. As in any commercial activity, discernment is important. It'd not come to your mind to declare that all restaurants are insalubrious if some of them unfortunately make the headlines. There are those who imagine strategies to make it rich quickly and others, true business builders, who ground their action over several years of honest work.

The interest in this form of marketing goes back to the 50??s, the success of Avon and Amway are some examples. Today, several companies explore this avenue. We can observe GE, AT&T, Kodak, Proctor &. Gamble who get involved by alliances with existing networks or by acquisitions. Furthermore, some American Universities are now offering Network Marketing courses.

In 1999, a survey conducted by Direct Selling Association in the USA revealed that Network Marketing generated worldwide sales of 84,5 billion $US and 34,6 million registered salespeople. In the USA alone, between 1995 and 1999, sales increased by 36 %, from 17,9 billion to 24,5 billion $US. The number of home based workers increased by 85 % in the USA between 1990 and 1997 and this trend will increase since 96 % of adults aged 25 to 44 dream of having their own business.

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Those interested in networking are people from all socioeconomic classes. Their motivations are multiple and vary from one another. However, some reasons arise more often, such as :

· the need for an additional revenue to actual wages

· escape from current job uncertainty

· the need to build up a worthy activity for your retirement

· the need for autonomy and to be your own boss

· wanting to manage one's own time in home comfort

· simply, start a new career.

Developing a new business project always requires some thinking. Offers are numerous, particularly on internet. Let??s review the most important criteria which should be considered in evaluating a business opportunity in Network Marketing :

1) The business capitalization : the marketing of products according to the Multi Level Marketing (MLM) method requires a big investment by the owners. it's important for you to verify the financial stability of the company you're interested in. Inquire about the business antecedents of its directors. Talk to entrepreneurs in place and ask to meet with the directors so they can expose their views on the industry, concentrate your questions on the strengths and weaknesses of the company. Are they paying commissions on fixed dates and without delay ? What're the expansion projects of the company ? Go for a visit of their installation, their customers service and shipping departments.

2) The training : your success as entrepreneur lies in acquiring a know-how. it's the company??s responsibility to offer you the tools which will help you to develop. Ask to see the training program. Ask questions about those giving this training and evaluate their competence. Read the available literature about the company and its products.

3) The choice of a sponsor : are you sufficiently at ease with your sponsor to invite him at your house for diner ? to talk to him on a daily basis ? Equally, do you've affinities with other members of this team ? Is your sponsor offering you any marketing projects to which you can adhere ?

4) The growth of the industry : choose a company established in a growing industry, the growth rate must be above 10 % annually for an medium growth and at least 20 % for a superior growth. Refer to available statistics on the subject. How's the company you're interested in positioned in this industry ? Choose preferably a company in the introduction phase which offers a high potential or a strongly growing company having but a few active entrepreneurs in your territory.

5) The remuneration plan : carefully study the rules to qualify for commissions. Are these rules clearly presented to you ? Is your sponsor helping you to establish your business structure in terms of your personal objectives? Talk to those who succeeded in that company and ask for advise on this subject. How many efforts do they devote to their business ? As a networker, can you get a good compensation for your efforts ? Evaluate the time you'll need to recover the money you invested to join this organization, it should be no more than a few weeks.

6) The range of products offered : the products must be sufficiently fascinating to you so that you become a consumer yourself. The products must be unique, i.e. available exclusively by the network you belong to. The products must be consumable, therefore excluding durable products. Ask for the loyalty rate to the products, it must be superior to 75 %. In other words. 100 clients, on average how many will continue to consume the products month after month ? The ??repeat business?? is an essential key in residual commissions. Evaluate the quality of the products, ask how they're made and what's their particularity. What benefits will the consumers reap from them ? Are the products offering an excellent Quality/Price ratio ? Does the company own any patents on these products ? This assures you that these products will remain unique. If it's a discovery, is it well documented, is this discovery well recognized and respected by the people in this industry ? Are the researchers who made this discovery respected in their field of research ? The larger the recognition in the field, the more you'll have an important discovery in hands. Ask the people around you for their opinion on how they perceive the products. you'll certainly join the company offering the best products because this thorough conviction will represent your everyday source of motivation as entrepreneur.

The range of products and the training offered by a Network Marketing company are often underestimated. Still, they're key to an increasing residual revenue. Give these elements a special attention in your evaluation.

you've all the information in hands, you've made up your mind, all that's left for you to do is the most important, work on YOURSELF. Here are the golden rules to success :

a) Develop a project that's unique, a way of doing things that's yours, a personal objective to attain. Put your train of thought in focus so that the objective to attain is clearly impregnated in your mind. don't hesitate to have grand ideas and develop for yourself the tools at the level of your ambitions. Your profound desire to be successful forever replaces the previous doubts and wavering. Elaborate a single project that'll occupy all your attention. Put it in writing and conjugate all verbs in the present tense.

b) don't enter in competition with anyone, you've a unique product, a fair price, a unique objective. Take what belongs to you and leave their share to others. Opportunities are numerous and the sun shines for all. What you wish for yourself, wish it for each member of your team and help them to attain their objectives. it's the beauty of the network.

c) Express your gratitude to the people who help you, be thankful to them regularly. They'll be inclined to be more supporting to you.

d) Go into action, your objective to achieve must be expressed into concrete daily actions. Visualize your daily progress and savor every little step to the realization of your objective. Give to each client more use value than the money value you get from them. Your will to act according to your plan is your source of motivation. Accomplish all you've to do, don't postpone till tomorrow what must be done today. 100 % of your efforts go to the success of your project.

e) Give yourself moments of reflection to readjust your aim and to reinforce your objectives. Develop action plans that are more and more efficient. Your occupation must be the actual moment. You can't change what was done yesterday and tomorrow is yet to come. Your objective must be ever present in your mind.

f) Be always enthusiastic and positive, gather people who share your views. Keep in the company of winners and stay away from pessimists.

g) Remain creative to imagine new methods of action to attain your objectives. Accomplish the tasks of the day efficiently and without stress. you'll give an impression of personal well-being which others can't fail to notice. Just like a magnet, you'll attract quality people who resemble you.

Paul E. Berteau

A few words about the author :

Paul got a bachelor and a master degree in business administration and about 20 years of experience in business. He owns the domain name

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