The 12 Critical Success Factors

 

You will find tens of thousands of individuals that get involved with MLM/network marketing to get a annual basis. Some join as a result of the product, because they're told that it is going to be "the next break through product", the one that has "never been noticed at the". Many are taken in by the bait of "earning big money for this revolutionary pay plan". In most cases, these people have never been given a way of evaluating these companies to determine whether they have been actually "worthy" people to market.

 

One of my own mentors, Michael Klimek, once gave me some ideas for just how best to evaluate any MLM plan. He gave them to me as 5 distinct criteria, but I am going to enlarge them out to 1-2, as I feel that there are additional criteria that should be taken into consideration as well.

 

This really is my expanded record of criteria That You Need to use while evaluating any MLM application:

 

1. Company track record -- Do your own "research" to the firm. Check out the firm by going to the Better Business Bureau within their Neighborhood area. See if there are any complaints filed against them, and see if any have been resolved.

 

2. Financial strength -- Actually when all factors seem to check outside, this really is only one of the main components to why lots of MLM programs neglect: maybe not enough capital to help keep it afloat. Bear in mind that 95 percent+ of most MLM companies never make it beyond its 5th year.

 

3. Strong management -- Check out the names of these people running the business (i.e. the CEO, CFO, President, etc.) to see exactly what experience they've had in running different companies:

a. What have they previously done?

B. Are they successful?

C. Do they have business qualifications?

D. Do you really get a good "vibe" from their store?

E. Do they seem to have "integrity", and is it someone you can trust with your future & the future of men and women that you want to present your business to?

 

The previous problem is of extreme importance, because I've seen it where several companies have terminated "sloughs" of providers for the most ridiculous of reasons. Ordinarily, it's simply since the business has established several "loophole" therefore that they do not need to pay for them that huge pay check.

 

As an example, one of my good friends was in an "not-to-be-named" juice corporation. She had been making at the "mid-4" figures on a monthly basis, also has been told that she would be declared since she was standing number1 on Google when people looked for that specific company. Is this fair? No, I don't think so! But it didn't matter to them. She couldn't fight the company's decision, and that she was chased anyhow!

 

4. Unique consumable products -- Does the company produce an unrivaled product? Is there any competition for that specific solution, and just how can they "compare" against eachother? What kind of market niche can there be for that item?

 

5. Competitive pricing -- Do these merchandise "stand well" in contrast to services and products currently in the marketplace? Do not become "garage-qualified" only to meet the minimal requirements to become supplied a pay attention by the business.

 

By way of instance, there was once a provider back in the 1990's that sold water filters. To qualify for a pay check, you had to get thousands of dollars of the water filters. Therefore started the word, "garage-qualified", which seems pretty self explanatory.

 

6. High reorder rate -- Can there be a real "sensed" value at this item? Can this system get ordered over and over again monthly? It's rather simple to know that when there's just a minimal re order rate, there'll undoubtedly be low residual money. Conversely, in case there's just a high reorder rate, there'll be a high residual revenue.

 

7. Low attrition -- In lay man's terms, is that the amount of individuals who stay on as clients monthly. This just means that if a small business builder is earning profits, he will keep on with the provider. If they have been always at a negative money flow, generally the ordinary time period given for this is approximately ninety days. If they proceed outside this time period in an adverse cash flow, they will quit the enterprise.

 

8. Low personal manufacturing requirement -- This is where you need to analyze what the regular product purchase is always to qualify to get a paycheck. Once this has been established, you need to ask yourself if that the "Average Joe" also can meet these requirements. http://www.techbasesolution.com/

 

9. Low entry costs -- As in our earlier example with all the water filter corporation, it did cost several thousands of dollars to merely "get started on the right foot". If those costs are excessively much, then a "average person" can not afford it. So they are going to never quite begin.

 

10. Timing vs. trends -- Never think the "Get in on the ground floor", "Be first", or "Pre-launch starts now" hype! Timing to connect a company is bad when you see their growth has ceased. Oddly, timing is good when you observe consistent growth in the company. In addition, you need to look at the changes which are happening in that specific market niche. How will they have to accommodate to maintain profitability?

 

11. Legal, fair, balanced reimbursement -- This needs to reward everyone else in a win/win manner, and establish up a "network" of "many people doing just a small amount of the same entity". Just like the teachings supplied by one of my previous mentors, Michael Klimek, he taught me to analyze a payment plan based on a little, attainable number that the "Average Joe" may reach. Look at how much you & every person has to dictate each month, and see how you're compensated for this.

 

1 2. No-risk -- you need to continuously measure the risks of the business versus the probable gains. Where the range of risks will be smaller compared to gains, it might almost appear sensible to proceed. Please be conscious of some businesses which provide a more "shadow firm", which is one that would seem to create more money with the sales of motivational materials (i.e. tapes, books, CD's, etc..) than they want with actual product sales within their company. These businesses must be avoided in any respect costs.

 

 

If you use the next 12 criteria I have provided you in evaluating any MLM/network promoting opportunity before getting involved, your probability of success with this particular app will be greatly increased.