Network Marketing with Magnetic Sponsoring and The Renegade

By Mike Klingler

One of the biggest reasons for failure in the network marketing industry isn’t in fact the industry itself.  One of the biggest reasons for failure in the industry is due to distributors selecting the wrong company.  Selecting the right company is absolutely essential to the success of a distributor.  Choose the right company and you could be earning a dream income and living a dream lifestyle.  Choose the wrong company and you could be just another causality in the industry.

So how do you select the right company?  There are five areas that you should look for when selecting a network marketing company to join.

1.  The stability of the company – You want to find a company that is stable and structured to stay in business.  Look for a company with a strong management team with experience.  If the company is publicly traded, look at their financials and make sure they have plenty of cash on hand.  You want to make sure you don’t wake up one morning and find out you won’t be paid commission for the sales you made.  Generally speaking the longer the company has been around, the better.  However, you also want to balance this with the second area.

2.  The Market – If a brand new network marketing company was started selling vinyl records, you probably wouldn’t research that company any further.  Why?  The product is a product that is behind the trend.  You want to get involved with a company that offers a product ahead of the trend.  This means the product has a long way to go before it reaches market saturation.  A lot of people assume that getting involved with a start-up company is the best move because of the ability to launch the company.  That’s actually not what you want.  What you want to do is look for a ground floor INDUSTRY not necessarily a ground floor company.  Even if the company has been around for 50 years, if they are still in a ground floor industry you can start from the bottom and work your way straight to the top of the compensation plan past many of the leaders who are in the company right now.

3.  The Product – Your passion and enthusiasm is vital in order to have success in network marketing.  People don’t buy products and they don’t buy compensation plans.  They buy your level of enthusiasm and excitement.  However, in order to generate a high level of passion and enthusiasm, you must represent a product that you can feel passionate about and get behind.  For example, if you are passionate about the world’s environment, you probably don’t want to get involved in a company that offers a product that saves money on gas because you won’t have the passion necessary to promote the product effectively.

4.  The Compensation Plan – You can have all the right traits in a company.  However if the compensation plan doesn’t pay enough to motivate you to take action, you simply won’t be able to have success in the company.  The compensation plan needs to be structured in a way where the new distributor can make enough money to stay excited about the opportunity.  At the same time, the compensation plan needs to be structured so that the top leaders can earn a strong income that is worth spending time building the business.  For more information on how to evaluate a compensation plan, you can check out the following article.

5.  The System – The main reason why you get involve in a network marketing company is to leverage the marketing system that the company offers.  The system needs to be simple enough that anyone can do and it can duplicate throughout the organization several levels deep.  The company needs to have an infrastructure in place to support you building a huge organization.  Otherwise if there is no system in place, none of these other traits will matter.