I believe there must be a good combination of Product, Company & Compensation Plan along with marketing tools, systems, a professional web presence and culture in order to be a company that I would chose as my Primary Network Marketing business.
Obviously we are in business to make money, so it is still a mystery to me why people sign up for Network Marketing businesses with horrible compensation plans.
It has been proven time and time again that you can make money just from a good compensation plan. Biz opps with vapor products and no real company behind them have caught on and those that got in first or the hot shots who sponsor many, plus of course the company, did make money, but it is always a quick hit, they die out before most people can earn an income.
It has also been proven time and time again that a company can do very well with a product that people love and a horrible pay plan. When people love the product, the company will get many customers and the distributors are actually customers themselves. This can create huge incomes for those that had the luck to get in when the company was young. These companies last, they become very profitable and have huge conventions, give away amazing prizes to the few that are earning a serious income, they can become the most professional and admired companies in our industry.
The problem of course is that no one makes any money. Keeping in mind that there are always those who have most of the company volume in their organizations and they become very wealthy. This is no different than the world as a whole, the few benefit from the masses. 5% of the population has 95% of the wealth.
Lets be honest, Amway isn’t a billion dollar company because they have a good compensation plan, people love their products and never stop buying them.
We do have to acknowledge though that these companies give our industry credibility, they are the standard in the industry, the companies that legitimize our industry to the general public and the government.
I think Shaklee is the best of these companies, but that’s up for debate of course, however when the owner and his wife are on Oprah, there isn’t much you can say about what that company has done for the industry and the quality of the products they provide.
Then we have the company issue, separate from products and compensation plans, the company is actually very important for long term success. If you are looking for a quick hit with a 100% pay out comp. plan then the company doesn’t matter much since the deal won’t be around long enough for the company to mess up. If you are looking for a great product, then you have so many companies to choose from, that you can go with one that already has a long standing track record.
Combining these 3 aspects is tricky.
When a company pays out too much, they don’t make enough money and cannot get to the level of Shaklee, Herbalife, Amway, Xango or Mona Vie. They cannot purchase the best software, create new products, hold events, hire customer service reps, web designers, programmers, etc.
When a company pays out too little, it’s not really a business opportunity is it? It’s more like a hobby or an activity that you participate in. It’s fun and you may meet a lot of people and make a few extra bucks, but you’re not getting to 10K a month. I’ve heard of lots of people who have taken thousands of dollars of their own money to get in and market a company, creating a real business around it, only to fail and lose it all because they didn’t realize just how many people they would need to earn a serious income, how difficult it would be to sign up that many people and the amount of time it takes to build an organization of thousands.
There are the exceptions of course. I still get a kick out of the Guru who gets in early on a new deal, with a compensation plan that is horrible for most, but is loaded with bonuses and incentives, that person, already has a business, they already have followers and a list, they have a marketing funnel in place, they may own their own system, books, videos, courses, etc. They also know other people just like them, as I always say, it’s not how many people you sign up, it’s who you sign up.
They will make lots of money and they will talk about how much they earn and how much you could earn, it’s all true, but not realistic unless you are in the same situation they are in.
There are many other company issues. No marketing tools, unprofessional web site, no conference calls or interaction with the members, no events, not paying on time, bad customer service, etc.
There are many companies that have actually combined the 3 main aspects of a great Network Marketing business. Not nearly as many as you would expect, considering there are thousands of companies overall. They are out there though.
Now, it is your job to find one that suits you. Most people won’t bother weeding out those that do not have an acceptable combination of the big 3. Acceptable meaning, the better the product, the more understanding you would be with the compensation plan, the less appealing the product, the better the compensation plan should be. There is certainly some negotiating going on inside your head. I will be paid less because that product is amazing or I will be paid more because that product isn’t going to get anyone jumping up and down.
Most people won’t bother with any of this. They join companies because someone they know is in it, someone they follow told them to join, they join because of hype. Either the product or the compensation plan is all hyped up and they fall for it. They join because everyone else seems to be joining so it must be good. Normally, it is very simple, they join because of the sponsor, the product or the compensation plan.
It’s all bad. As I ranted about on my home page at http://www.opportunityseekers.com joining anything without completely understanding every aspect of the business, without knowing exactly why you are joining and why this is the perfect business for you is a huge business mistake.
Getting back to the combination of the big 3 and what appeals to you.
A company could do everything right, be one of the best ever created, but if the productdoesn’t appeal to you personally, then it shouldn’t matter. You need to be able to sell this opportunity to others, even if you are not the type to get customers, you aren’t going to be retailing any products, the product or service is of course a major part of the opportunity as a whole and you need to believe in the product or service. That’s not to say that you need to believe it’s going to cure cancer, but you have to know that the product has value.
On the flip side of that, if you love the product, but for whatever reason, it has a small market appeal, then you still won’t be able to sell it. An example of this would be a product that filled a very specific need, you have that need, but most people don’t. Another example would be a product that has too much real world competition, cell phone companies are a great example of this. They provide a great service, at a lower cost and with a pay plan to boot, but do you really want to or do you really think you can compete with Verizon, Sprint and AT&T.
Network Marketing really is all about you. It doesn’t matter one little bit how much the person who is trying to sign you up loves the business, if you can’t wrap your head around the compensation plan or don’t think the product is exceptional.
You have now cut out many more companies as options for you.
You would not believe how many times I am introduced to a company that looks great, has almost all of the elements in place, great management, great product, hot web site, marketing systems, events, a sponsor I want to work with, etc. only to find that the pay plan is one of the worst I have ever seen. It’s disappointing actually, but again, this is business and must be treated as such, so the company cannot be considered as an option.
The Big 3:
A product that I love and believe has a wide appeal.
A compensation plan that is fair for most and doesn’t just cater to the heavy hitters.
A company that is proactive, intelligent, supportive & credible.
As I said above, these are all based on you.
What do you feel is a fair and profitable compensation plan. Your idea of a good pay plan may certainly be different than mine.
Keep in mind, I’m talking about your primary business here, I’m not talking about add-ons, other businesses that you wrap around your primary business. Since they are add-ons, they have to serve a specific purpose and follow a whole different set of rules although if they do have The Big 3, that’s all the better of course.
There are other factors that come into play also, when picking a company, but they aren’t as important as the big 3, some come close though, so I will talk about them in my next post.
I appreciate you reading this information, I hope you found it of value, don’t forget to actually use it next time you are choosing a primary Network Marketing Business.
The Big 3 …
I believe there must be a good combination of Product, Company & Compensation Plan along with marketing tools, systems, a professional web presence and culture in order to be a company that I would chose as my Primary Network Marketing business.
Obviously we are in business to make money, so it is still a mystery to me why people sign up for Network Marketing businesses with horrible compensation plans.
It has been proven time and time again that you can make money just from a good compensation plan. Biz opps with vapor products and no real company behind them have caught on and those that got in first or the hot shots who sponsor many, plus of course the company, did make money, but it is always a quick hit, they die out before most people can earn an income.
It has also been proven time and time again that a company can do very well with a product that people love and a horrible pay plan. When people love the product, the company will get many customers and the distributors are actually customers themselves. This can create huge incomes for those that had the luck to get in when the company was young. These companies last, they become very profitable and have huge conventions, give away amazing prizes to the few that are earning a serious income, they can become the most professional and admired companies in our industry.
The problem of course is that no one makes any money. Keeping in mind that there are always those who have most of the company volume in their organizations and they become very wealthy. This is no different than the world as a whole, the few benefit from the masses. 5% of the population has 95% of the wealth.
Lets be honest, Amway isn’t a billion dollar company because they have a good compensation plan, people love their products and never stop buying them.
We do have to acknowledge though that these companies give our industry credibility, they are the standard in the industry, the companies that legitimize our industry to the general public and the government.
I think Shaklee is the best of these companies, but that’s up for debate of course, however when the owner and his wife are on Oprah, there isn’t much you can say about what that company has done for the industry and the quality of the products they provide.
Then we have the company issue, separate from products and compensation plans, the company is actually very important for long term success. If you are looking for a quick hit with a 100% pay out comp. plan then the company doesn’t matter much since the deal won’t be around long enough for the company to mess up. If you are looking for a great product, then you have so many companies to choose from, that you can go with one that already has a long standing track record.
Combining these 3 aspects is tricky.
When a company pays out too much, they don’t make enough money and cannot get to the level of Shaklee, Herbalife, Amway, Xango or Mona Vie. They cannot purchase the best software, create new products, hold events, hire customer service reps, web designers, programmers, etc.
When a company pays out too little, it’s not really a business opportunity is it? It’s more like a hobby or an activity that you participate in. It’s fun and you may meet a lot of people and make a few extra bucks, but you’re not getting to 10K a month. I’ve heard of lots of people who have taken thousands of dollars of their own money to get in and market a company, creating a real business around it, only to fail and lose it all because they didn’t realize just how many people they would need to earn a serious income, how difficult it would be to sign up that many people and the amount of time it takes to build an organization of thousands.
There are the exceptions of course. I still get a kick out of the Guru who gets in early on a new deal, with a compensation plan that is horrible for most, but is loaded with bonuses and incentives, that person, already has a business, they already have followers and a list, they have a marketing funnel in place, they may own their own system, books, videos, courses, etc. They also know other people just like them, as I always say, it’s not how many people you sign up, it’s who you sign up.
They will make lots of money and they will talk about how much they earn and how much you could earn, it’s all true, but not realistic unless you are in the same situation they are in.
There are many other company issues. No marketing tools, unprofessional web site, no conference calls or interaction with the members, no events, not paying on time, bad customer service, etc.
There are many companies that have actually combined the 3 main aspects of a great Network Marketing business. Not nearly as many as you would expect, considering there are thousands of companies overall. They are out there though.
Now, it is your job to find one that suits you. Most people won’t bother weeding out those that do not have an acceptable combination of the big 3. Acceptable meaning, the better the product, the more understanding you would be with the compensation plan, the less appealing the product, the better the compensation plan should be. There is certainly some negotiating going on inside your head. I will be paid less because that product is amazing or I will be paid more because that product isn’t going to get anyone jumping up and down.
Most people won’t bother with any of this. They join companies because someone they know is in it, someone they follow told them to join, they join because of hype. Either the product or the compensation plan is all hyped up and they fall for it. They join because everyone else seems to be joining so it must be good. Normally, it is very simple, they join because of the sponsor, the product or the compensation plan.
It’s all bad. As I ranted about on my home page at http://www.opportunityseekers.com joining anything without completely understanding every aspect of the business, without knowing exactly why you are joining and why this is the perfect business for you is a huge business mistake.
Getting back to the combination of the big 3 and what appeals to you.
A company could do everything right, be one of the best ever created, but if the productdoesn’t appeal to you personally, then it shouldn’t matter. You need to be able to sell this opportunity to others, even if you are not the type to get customers, you aren’t going to be retailing any products, the product or service is of course a major part of the opportunity as a whole and you need to believe in the product or service. That’s not to say that you need to believe it’s going to cure cancer, but you have to know that the product has value.
On the flip side of that, if you love the product, but for whatever reason, it has a small market appeal, then you still won’t be able to sell it. An example of this would be a product that filled a very specific need, you have that need, but most people don’t. Another example would be a product that has too much real world competition, cell phone companies are a great example of this. They provide a great service, at a lower cost and with a pay plan to boot, but do you really want to or do you really think you can compete with Verizon, Sprint and AT&T.
Network Marketing really is all about you. It doesn’t matter one little bit how much the person who is trying to sign you up loves the business, if you can’t wrap your head around the compensation plan or don’t think the product is exceptional.
You have now cut out many more companies as options for you.
You would not believe how many times I am introduced to a company that looks great, has almost all of the elements in place, great management, great product, hot web site, marketing systems, events, a sponsor I want to work with, etc. only to find that the pay plan is one of the worst I have ever seen. It’s disappointing actually, but again, this is business and must be treated as such, so the company cannot be considered as an option.
The Big 3:
A product that I love and believe has a wide appeal.
A compensation plan that is fair for most and doesn’t just cater to the heavy hitters.
A company that is proactive, intelligent, supportive & credible.
As I said above, these are all based on you.
What do you feel is a fair and profitable compensation plan. Your idea of a good pay plan may certainly be different than mine.
Keep in mind, I’m talking about your primary business here, I’m not talking about add-ons, other businesses that you wrap around your primary business. Since they are add-ons, they have to serve a specific purpose and follow a whole different set of rules although if they do have The Big 3, that’s all the better of course.
There are other factors that come into play also, when picking a company, but they aren’t as important as the big 3, some come close though, so I will talk about them in my next post.
I appreciate you reading this information, I hope you found it of value, don’t forget to actually use it next time you are choosing a primary Network Marketing Business.
Jim Vigilante
Home Business Consultant
http://www.opportunityseekers.com