Which Is Better Public Network Marketing Companies or Private Network Marketing Companies?

One of the most debated and talked about topics in the network marketing industry has been; “Public companies versus private companies and which is better?”. Let’s dive in and take a closer look and I think you may be very surprised at what you may come to find.

First the safety net, private network marketing companies. I am certain that by now in your infinite quest in searching for the “perfect” network marketing company, you have heard how the safest of all options is a private company.

• Private network marketing companies always have the best interest of distributors at heart.
• They tend to have compensation plans that pay their distributors the best.
• The private companies tend to be more family oriented.
• Decisions are quickly made and implemented by upper management and owners without having to jump through hoops and the need to deal with a bunch of red tape to get things done.
• Product development comes quicker since there are no share holders involved and the outsourcing is a much easier process.

Now let’s expose all the pieces of how a public company is considered to be "the kiss of death" for longevity and success in network marketing. I am certain that most everything that I am about to share with you, you have heard at one time or another. If it’s a first, you may want to sit down.

• First, public network marketing companies only have the shareholders best interest at heart.
• The company is constantly going to reduce it’s compensation plan and pay their distributors less and to show greater profit margins to keep their shareholders happy.
• All decisions are and must be first signed off by the public companies officers and shareholders.
• Product research and development moves slower and has to go through a more stringent approval process.
• At the end of the day, the company will be sold and you, as a distributor will loose all your income.

As always I have to rock your world and turn it upside down from what you may think you know about network marketing companies. I think you may find yourself a bit shocked.

Where did we leave off... Oh yes, public network marketing companies versus private network marketing companies Let's get right back into it.

First off MOST ALL of what we hear EVERYDAY about how much better a private company is, was started by…

Drum roll please...

The private companies distributors and theirs owners to combat some of the substantial, almost blinding  strengths that public network marketing companies have over them.

What?

Yep, you read that correctly.

First a few facts:

• Regardless if a network marketing company is public or private, they MUST have the distributors best interest at heart. If not they are doomed to fail
• With public companies the decisions are made at the corporate level just the same way that a private company makes their decisions. The gross misconception that all decisions are made by some shareholder puppeteer isjust a flat out fallacy. 
• Product research and development moves at a snails pace with public companies. Again, this is not accurate. Proper product and development take time. I have seen far too many companies try to pound out product after product only to see each one fail and fall flat on their face.

Like any business regardless if it’s a public or private company, everyone is in a business to make money from the owner on down to the distributor that just signed up five minutes ago.

Some people make it seem that some private companies are on a personal crusade of goodwill to share their story, products and try to fulfill everyone's deepest desires and could care less how much money they make.

Really?

Think of in in a very simple way, would any company be in existence for long if it did not generate earnings?

No.

Do public network marketing companies have shareholders that invest into the company and look to see a return on those investments?

Absolutely, positively, without a doubt, YES.

However, what people so often forget about public companies is that their numbers, financial information, profit and loss statements are all out in the open for people like you and me to look at. So we can actually see the strength of the company.

In an economy where we have seen so many businesses crumble do to the economic debacle, do you think that complete transparency might have help to predict and prevent some of the uncertain times that we are now engulfed by?

Now, with so many private network marketing companies either changing the compensation plans to try and stay above water, or have since closed their doors, do you feel that if there was some transparency, many distributors might have escaped the sudden blow of being blindsided?

At times cash flow can become tight with any organization and with the challenges that plague the world, it becomes challenging for private companies to raise the capitol that they need. On the other hand, the strength of a public company and the backing investors in many cases allows for them to raise money almost on demand. Kind of like there own personal ATM.

You can see by now, why this has become almost a life long debate in most every network marketing circle. There are so many ways that every pro and con can be spun, so many different views that can be expressed about this issue.

I will leave you with these final thoughts. First, at the end of the day regardless of what anyone tells or what you read, trust your gut. However powerful the temptation is to make the leap, look for some very distinctive traits that are essential for either public or private companies to have in order for you to have a fighting chance to succeed.

1. Does the company management have field experience in building a network marketing company?
2. Does the compensation plan give the part time distributor a fighting chance at building a business and creating an income in a short period of time?
3. Has the company made it through the infancy stages of its growth and developed enough to get passed the growing pains? You will want to look past all the hype of the brand new start up, pre-launch and the idea that is still on the kitchen table companies. Grab hold of a company that is at least 2-3 years old. This will give you the greatest opportunity for the success that you deserve regardless if it’s a public or private company.

I hope and wish for you all the success in the world as I am sure that you deserve it. I would love to hear your comments and thoughts on this sometimes challenging subject. You can also read other articles by clicking here.