Network Marketing and Due Diligence
Nearly all people like to get recommendations from people they like and trust. Sometimes they will buy from people they like and trust instead of a stranger. The interesting thing about Network Marketing is that we like to build relationships instead of only making a sale. So, if people already like and trust you, there is a natural warm market for you. Otherwise, you need to cultivate a network of friends by being a friend. Keep in mind that you want to make their lives better with your products or opportunity.
Since you will be presenting the opportunity for your friends to purchase from you, it behooves you to perform due diligence on your opportunity. What are some of the criteria you should investigate? As a minimum consider these:
We will consider each of those in order.
Company: what is the likelihood the company will still be in business next year? Does the management team have experience dealing with independent distributors? You need to have confidence the company will do what it is supposed to do. If it is a startup company, you should really know the top management team. If it is been around for five years or more, the odds are pretty good it will continue in business. What are the financials for the company? Satisfy yourself that this business partner is a good bet.
Trends: Does the opportunity address current and future trends?
- Three-quarters of Americans are living paycheck to paycheck
- More than one-third of all working-age adults have no retirement savings
- Baby boomers are aging and they do not like it.
- Women grow companies at a rate 1 1/2 times the national average.
- 70% of 18 to 35-year-olds see themselves working independently at some point, rather than being employed.
- People want products to make them look better, feel better and perform better.
Product: Are the products both unique and consumable? Or are they me two products available from 100 other companies, including Walmart and Walgreens? Are the products protected by patents? Would you buy the product if you were not a distributor? Are the products affordably priced?
System: is there a duplicatable training system in place? Will your enroller give you hands-on training? Are there experienced leaders who will also provide hands-on training and help you with personal growth and development?
Timing: Are there already over 2 million distributors in the company or less than 200,000? The direct selling Association says that anywhere from the first 150,000 to 200,000 distributors is a ground-floor opportunity. Whatever the amount, the timing will never be better than right now.
Compensation: How do you make money with the company? Is there a steady and reliable long-term income? Can you make immediate money? What is the balance between immediate and long-term income?
There are many network marketing companies who can give you a favorable response to most of those questions. If you find one that gives a favorable response to all those questions, jump in.