What is a 5 Pillars Company?
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A 5 Pillars Company is a company that has 5 important parts to it that are vital to your success as a member/distributor of it. I'll discuss each of the Pillars below.
You want to be sure the company you are interested in has ALL 5 of them and you want to know this BEFORE you sign up with them.
You are making a decision that will impact your future success. Your decision will affect your family, your time and your income. I know there are a LOT of exciting offers out there. Take a step back from your excitement. Let your research help you base your decision on facts rather than the emotional high from the offer at hand.
The 5 Pillars
Pillar 1. Company Management Experience with Integrity!
A good company should have management who has experience building a network marketing company themselves. And a good company should have Integrity.
Do a simple Google search on the company owners. Put their name in the search bar surrounded with quotation marks. Try putting the word "scam" behind their name. What do you find?
Consider this. When a company is built by an owner who has built a large business or downline themselves, you could call them "Distributor minded". They will be more mindful that the pay plan will be good and it will be easy for even part timers to build a business with them.
When a company is built by Fortune 500 executive types who have never built a network marketing business themselves, they will be more "business minded". The pay plan will be designed to pay the company not the Distributors.
The company's Policies and Procedures (P&P) should be available to you before you join. This will be your legal contract with the company. You owe to yourself to read it over BEFORE you join.
Typically, the shorter the P&P, the better. A short P&P that is short and to the point means there is low overhead. The cost to run the company is minimal....so the company is able to provide a better pay plan paying more money to the distributors.
Companies with high overhead always have a long, long Policies and Procedures. These are the kind of Policies and Procedures that even a lawyer would dread reading.
Beware of these clauses:
Annual renewal Clause. This means you have a one year contract with your company. They can choose NOT to renew you!
Ongoing Obligation Clause: You will have an ongoing obligation to "___" (often the blank is filled in with RECRUIT) meaning if you fail to recruit as per the P&P clause, the company has the right to TERMINATE you regardless of your level of achievement. [How would you like to work hard and build your organization to a level of $10,000 or more per month only to be terminated because one month you failed to meet the ongoing recruiting obligation?]
Termination Clause: This clause gives the company the right to terminate you at will. {How reassuring is that!??]
Here is another search to try. Look for the company's products on Ebay. How much cheaper can you buy the products for? A lot of people shop on Ebay and if they can buy those products cheaper they will!
Pillar 2. Timing in the company, Timing in the industry!
In general, you want to be with a company that is at least 2 years old, preferably 4.
99.2% of new companies do not survive the first 2 yrs after they launch. They have great difficulty surviving their growing pains. Changes can and will be made to the compensation plan.
Where will this leave you the distributor?
Often there are software problems. Bugs need to be worked out; formulations need tweaked; upgrades need done.
Pillar 3. A Fantastic Product at Value Pricing!
Most companies have great products. Ask yourself if you would buy this product at the asking price if there were no business opportunity involved?
Can people buy the product without being a distributor? Retail sales should be a big part of your business volume.
You want to build with both customers and distributors. If you only have distributors, you are in a "recruit, recruit" business model. If you are recruiting, recruiting, recruiting you're just building a paycheck not a long lasting residual income! There simply is NO residual income in recruiting!
Pillar 4. The Compensation Plan!
What constitutes a "good pay plan"? My answer to you is one that pays the most, for the least amount of people, in your organization!
Can a part-time networker make money with your pay plan? How much money do you make on a retail sale? If you are being paid 7% or less on the retail price, it will take you out of the game!!
Here is a simple formula that will show you exactly how many people you need in your organization to make your desired monthly income. I use $10,000 per month for easy figuring. I call it the 10K Question.
Figure out how much money you make per person, per spot, and divide that into your desired monthly income! That simple formula will give you the exact amount of people you will need in your organization to make your money!
Example: $10,000 divided by $4.83 = 2,070 people under you who are ordering the minimum autoship every month.
If you want to earn $1,000 per month, divide both by 10. Result: 207 people under you.
The industry average is 2500 people for $10,000 per month.
Will you be able to build it that big? Will you be able to help your downline build theirs to so you can maintain your organization? How likely is it for a part-time person to achieve that?
Pillar 5. Systems for Success!
This is the "Glue" that holds it all together. You MUST have a system that ANYONE can plug into to have leads come to them. The SYSTEM must be duplicatable.
SYSTEMS are duplicatable, PEOPLE are NOT.
Every new Distributor will ask themselves, "Can I do this?" and "Can you, will you, help me?"
Network marketing is NOT a sales business. It is a relationship business! People join people, they do NOT join companies!
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If the company you are looking at is missing any one of these 5 Pillars, you must decide for yourself if it will be worth your time and money to invest in that company.
As a business mentor, I can help guide you through the steps in spotting a legitimate company that will pay you for your efforts of building it BIG and building it ONCE and that will be there to pay you, your children and your children's children.
Click Here for More Information! It’s Free!
Janet Hanson
Live Your Dreams and Enjoy Life!
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