Skim Milk Does not Come from Skinny Cows

  Written by Debi Talbert on Feb 8, 2010 10:04 am

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Everybody knows that a great deal of small businesses fail. Regardless of what industry they are in. It makes since that the same applies in the network marketing industry. The numbers show that 97% of the individuals who start a network marketing business fail. Some of that failure could be linked to the fact that, unlike most businesses, it doesn't cost thousands of dollars to get started, so virtually anyone can start their own business. With not a lot invested people are more likely to give up at the first sign of struggle. Everybody knows that it is far easier to walk away from a $500 deal than it is a $5000 deal.

Another reason why people fail in network marketing could be linked to the fact that people don't totally research what they are getting themselves involved in. Most people do not bother to read their policies and procedures. I did this myself. I joined more than one company without taking the time to read the policies and procedures. I did this because I was not looking at what I was doing as a REALLY BIG investment. I had the mindset that it was kind of like buying a lottery ticket. Maybe it worked, maybe it didn't. If not, no big deal.

When I think back about that, it is no wonder I failed in the beginning. What I have since come to learn is that it is extremely important to understand how to analyze a company. Most people don't understand that as a network marketer you are a subcontractor in business for yourself. As the independent contractor, your role is to look for a company that has the mindset of win, win. A win for the company, so they can stay around and pay you and a win for you the independent affiliate so that you can get paid well for you efforts.

Here are five tips that I'd like to pass on to you that I've learned during my network marketing education: 

1 Check out the companies integrity and their managements experience. How can you figure out if the companies' Management has experience? Do a Google search. Find out who the owners are and what they've done in the past. Have they ever had the experience of building their own downline? And, were they successful doing it? Or, are they Corporate Fortune 500 Executives that have had no prior experience building a successful downline in Network Marketing.

2 Stop and think about the timing & the industry. Remember most business fail in the first 5 years.

3 Are the products a good value for the price. Not your price as a distributor, but the customers price. Everybody knows that if there is no product, then it is not a legal network marketing business.

4 Analyze and understand the compensation plan. Understand how many people you are going to have to have on your team ordering each month in order to break even. Know what hoops you are going to have to jump through to get paid at higher levels. Look for the words Terminate, Termination, Involuntary Termination, Does it have a yearly renewal clause. Also look for the words Ongoing, Ongoing Sponsoring, Recruiting, or Retail Sales. This means you can never truly retire from this company.

5 Does your company and more specifically, the individual that is signing you up have a system for training you that is easy to duplicate. A system that will allow the full-time worker to earn while they learn how to build their network marketing business part-time.

The TRUTH is: Network Marketing Companies are nothing without YOU, the distributor.

Your power lies in taking action. I sinerely encourage you to empower yourself and take action on at least one thing that inspired you here.

Expect Success - Debi Talbert

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