| Author | Post |
|---|
TonyRush3
Member
| Joined: | Fri Sep 23rd, 2005 |
| Location: | Alabama USA |
| Posts: | 289 |
| Mana: |    |
|
Posted: Tue Jan 2nd, 2007 05:50 pm |
|
I believe the following three questions will let you eliminate 95% of the companies you look at:
1. Would I buy this product myself if I wsa not going to get a check? Generally speaking, if the product is not one that you'd have any interest in, then your success is going to be somewhat hampered. While it's true that skinny people have made good money selling weight loss products.....the key here is personal passion. If you're in the group of people for whom the product is designed....would you buy it even if you weren't getting a check from the company? If the answer is no, you'll find it difficult to be successful.
2. Would you buy it at that price? If you wouldn't buy the products on the open market at that price, it's not likely that anyone else will either. Don't think that people are going to automatically pay more for a product just because they might get a bonus check. History has shown that, in the long run, they don't.
Your success in network marketing is all about getting the product to the end-consumer. Someone who actually wants it and is willing ot pay for it. If you're not doing that, you're dead in the water.
And let's be honest: the MLM industry is notorious for over-pricing mediocre products just so the company can pay out commissions. Find a product that has a value that meets or exceeds the price tag. Otherwise, you're wasting your time. The only people paying $4 for that bar of soap or $13 for that bottle of shampoo are the people IN the company.
3. How many people will you need on your team to break even? In my opinion, this is the most overlooked factor when selecting a company. Most people get so enamored by the pay plan chart and the dream of building a team of thousands of people that they never bother to do any basic 3rd grade arithmetic.
Walk into any serious business and ask the owner, "How many people do you need to walk in the door here for you to make a profit?" -- and he can tell you.
In my observation, 99.9% of networkers cannot give you this number.
And it's easy to figure up. Get a pencil and paper and follow along:
A. Figure up how much it costs for you to operate your business each month. Product purchases, website, marketing, etc. This is your overhead. (Example: $400 a month)
B. Figure up the average commission you earn on an enrollment when someone signs up and buys the same amount of product you do. (if you get paid different percentages on different levels, take an average of your top three levels) This should be a dollar figure, not a percentage figure. (Example: $5.25 per person in your downline)
C. Divide the figure in step A by the figure in Step B. This is the number of people that you require in your downline to break even. {Example: $400 divided by $5.25 = 76 people).
In my opinion, you should be able to break even on your expenses with only 4-8 people on your team. The longer you and your associates go without earning profit, the more likely you and they are to get frustrated.
So, there you go....in my opinion, if you ask those three questions, that will allow you to eliminate the vast majority of companies you look at. Once you've got your list narrowed down with these three questions....THEN you can start asking questions about product quality, management, support, etc......
I hope that assists,
Tony RushLast edited on Thu Jan 4th, 2007 03:47 pm by TonyRush3
____________________
Tony Rush has been fulltime in network marketing since 1996. He currently serves in the Executive Marketing Council for a large direct sales company and is the co-author of "It's Time...For Network Marketing".
http://www.tonyrush.com
|
stepmonster
Member
| Joined: | Sun Dec 31st, 2006 |
| Location: | Raton |
| Posts: | 11 |
| Mana: | |
|
Posted: Wed Jan 3rd, 2007 03:22 am |
|
| Thanks for the post. I never thought about #3. Definitely food for thought.
____________________
**ONLY LOSERS PAY FOR LEADS** Discover how average people with no marketing backgrounds are getting prospects to pay them. NEVER PAY FOR TRAFFIC AGAIN!!! http://www.payitforward4profits.com/stepmonster
|
jschuman
Member
|
Posted: Wed Jan 3rd, 2007 01:56 pm |
|
I like #1 Tony. I think today that a network marketing company has to have a product that there is a need for. I'm not sure joining a mlm company just for the money works anymore. It is just to easy to get almost any products easily thanks to the internet.
The other thing is I think the product need to be something you can not go down to Wal Mart and buy for 1/2 the price. So you are right on with #2 as well.
Good post!
____________________
Jeff Schuman
Make Money At Home JV With Jeff, free training, paid surveys.
Article Writer Only sold 1 time to you, testimonials, sharp pricing.
|
greet
Member
| Joined: | Sun Dec 18th, 2005 |
| Location: | |
| Posts: | 49 |
| Mana: | |
|
Posted: Wed Jan 3rd, 2007 10:13 pm |
|
Good points,
Would I buy this product myself if I wsa not going to get a check?
Not only the products should be important to us, but more importantly, will the market like the products?
If you like the products, but MR. market doesn't argree with you then you still have Nothing.
Thanks for sharing Tony
____________________
No hotel meetings. No traffic Jam. 100% home based business
|
vern
Member
| Joined: | Tue Jul 4th, 2006 |
| Location: | Singapore |
| Posts: | 421 |
| Mana: | |
|
Posted: Thu Jan 4th, 2007 02:51 am |
|
Hi Tony,
You've hit the bullseye on all points.
I especially liked point #3 too since even myself I have never
thought of that since I started a few months back but have figured it
out along the way. Geez, I wish you'd posted this much earlier
so I could also have a plan on my breakeven points 
God Bless and Happy New Year to you!
Vern
____________________
Vern How Is An Established Affiliate Marketer
Need Help Getting Traffic For Your Business?
"Click Here" To Get The Latest Tips.
=> http://www.VernHow.com
|
Kim_Ward
Member
| Joined: | Tue Dec 13th, 2005 |
| Location: | USA |
| Posts: | 4 |
| Mana: | |
|
Posted: Wed Jan 10th, 2007 03:28 pm |
|
Hi Tony,
Great input on what to look for in a company.
Those are things I considered when choosing my
company as well.
1. Is definitely yes! Could not live without.
2. Yes. And cost wise, our products are much lower
than other comparative MLM products.
3. That depends on how much people are buying. If people are
buying as much as I do, $120.00 a month, then it would be 12.
(including shipping cost) I brought in 19 people in my first month,
so I was well covered right away. And that is just residual
income, it does not include retail profits, which is much more.
If someone was on our highest level of auto ship at $120.00,
and retailed just 2 products they would break even, and have 2
cans for personal use for free! If they wanted to sell at same price
as wholesale buyers, they would need 3, but would be in profit.
(and non members do buy our products)
There is outside cost to run the business, and those can vary
person to person. But there is also ways to do so on a shoe
string budget if need be.
You said:
And let's be honest: the MLM industry is notorious for over-pricing mediocre products just so the company can pay out commissions. Find a product that has a value that meets or exceeds the price tag. Otherwise, you're wasting your time. The only people paying $4 for that bar of soap or $13 for that bottle of shampoo are the people IN the company.
I have not found that to be true at all. Some of the best products are
in MLM. I know because I buy and compare with non MLM products.
But yes, there are over-priced mediocre products too.
Again, on the soap, not true. We do not sell it, but I pay $4.00 a bar
at GNC, for good quality natural soap. Sometimes I do get on sale
though. I will pay extra for shampoo's that are more natural, but I
know where to get at good price. BUT many people outside of MLM
do pay those prices for name brand hair care products, at salons,
etc.
I guess it all depends on what YOUR market is. Find products
and prices to match that, and you have a winner!
Cheers,
Kim
____________________
http://www.justget3.com
|
Huntman1
Member
|
Posted: Thu Jan 11th, 2007 02:24 am |
|
Tony,
Thank you for that post! There are so many people out there that have the cart before the horse in their pursuit of an online business. A lot of people sign up for opportunities that they don't understand completely. They fall for the hype and do very little to find out if the company that they are considering has any substance.
I'd like to add, if I may, another aspect that everyone should consider when choosing a business for themselves:
I believe that everyone should do research, not into which business offering is right for them, but research whether the online business model is one that fits the individuals own personal skill sets and resources.
For example, if you are allergic to dogs, then a dog walking business is not right for you. So it would logically follow that if you are "allergic" to people, if you are allergic to add writing (or more importantly, don't want to learn how to become a good add writer), if you are allergic to spending hard earned money, sensibly, on advertising and lead generation, and if you are allergic to learning a whole new language; if you are impatient, want to see results yesterday and have little resolve, then maybe you should consider something else. Try babysitting the neighbors Japanese Maple tree. (I could use one since I have personally killed 3 of them!)
There is a lot to learn in this world of Online riches. It is a shame that many people spend money (and YES an online business WILL cost you something. Money or Time) getting involved in a business that they know little or nothing about and then later call it a scam because they made no money. When you look deeper, often times, you will find that the person didn't have a full understanding of what it means to run an online business.
My advice? Take your time! Read posts like the one by TonyRush3. Learn what it takes to run a successful online business BEFORE you start looking for the particular business that calls to you. Find out first, if your own skills are synergistic with running an online business. This way, you can focus on how to position and market your business and not waste time and money on learning the nomenclature and tools of the online buisiness world.
____________________
Great Wines
Excellent Friends
With Health Benefits!
Need I Say More?
http://www.WineLifeAtHome.com
|
vern
Member
| Joined: | Tue Jul 4th, 2006 |
| Location: | Singapore |
| Posts: | 421 |
| Mana: | |
|
Posted: Thu Jan 11th, 2007 03:15 am |
|
Hi huntman1,
I believe that you have truth in your words about
people spending some money into the program and
then quit because they weren't getting he results they
wanted.
This is the main reason behind many failed entrepreneurs
calling a lot of programs scams nowadays. Then, they go
about spreading some news about their experience to others.
What we need to realise is that a business is not working for
someone it is an asset which will bring us great rewards as
we continue to put more and more effort into buildling it.
Call is passive income if you will. 
PS : build a system , not work it.
____________________
Vern How Is An Established Affiliate Marketer
Need Help Getting Traffic For Your Business?
"Click Here" To Get The Latest Tips.
=> http://www.VernHow.com
|
JanetN
Member
|
Posted: Fri Jan 12th, 2007 07:54 pm |
|
Great post Tony. #3 is very important. Moving past breaking even Another question people should ask is how many people do I need in my organization to reach my goal, whether it's 1000 dollars a month or 10,000 dollars a month. This means residual income only (retailing product) not sponsoring bonuses. Even if your goal is $1000 a month would you rather need 500 people in your organization or 50 people?
Residual income is the heart of network marketing. It does take time to build your business and your residual income. Sponsoring bonuses are a great way to get a check while your building your residual income. It's nice to know if for some reason you can't actively build because of illness, a long vacation or if you decide to retire one day you'll still have a check coming.
Janet
____________________
Janet Napora
Teacher and student
http://JanetNapora.com
|
beglobal
Member
| Joined: | Fri Jan 12th, 2007 |
| Location: | |
| Posts: | 2 |
| Mana: | |
|
Posted: Fri Jan 12th, 2007 10:36 pm |
|
thanks!!!very interesting and useful information!!! great ideas!!!
____________________
Marketing Agency Edinburgh
|
uanz
Member
| Joined: | Sun Jan 14th, 2007 |
| Location: | Singapore |
| Posts: | 2 |
| Mana: | |
|
Posted: Mon Jan 15th, 2007 07:20 am |
|
Tony,
Thanks for the post. Like many others, i have to agree on point#3 which many people seldom think off.. I confess I'm one of them but thanks to you, I will take that point into consideration as well..
I have read several ebooks about marketing but point#3 not highlighted as you did.
my very first knowledge finding from this forum.
Point#1.. I guess passion for the products play a part in choosing a company/product. but even though you got passions for the products, it still won't let u choose a suitable products/company.
I wish to add a another point to consider when choosing a company/product.
A Good Networking Marketing System of that product/company in place.
No matter how good the product but if it got bad Networking marketing System is not good enough.. A good networking marketing System means that they must have Lead capture Page, Follow up email system, great Feedback system, powerful support & good products..
With that in place autamatically, your downline will be able to duplicate the same way you did easily.. Everything done for you by the company.. Your only job is to find prospects. Imagine without all this, can you imagine how difficult it is to tie all that up on your own especially for newbies like me..
Thank goodness, i know a bit of marketing before I started out.
____________________
Free Email Marketing eCourse through email itself.
Power yourself with this knowledge Now.
No Risk Involve.. It's FREE giveaway..
http://www.emailcourse.uanz.com
|
mentorlee
Member
|
Posted: Tue Jan 16th, 2007 01:11 am |
|
Here's something to take a look at when looking for a company.
1) Does company management have any experience in the field. Have they been a distributor before. Do they know what it's like to build a home business or is it some corporate guy who don't care about the distributors and only care about making money.
2) Is the business model all about recruit, recruit, recruit. If it's all about recruiting then your income will drop once you stop recruiting. It becomes vampire marketing where you're always looking for new blood. You want to join a company who's business model is about retail, retail, retail.
3) You need to have value priced products. If the prices of a company product is too high that your mom can't pay retail then run. It has to be priced where CUSTOMERS want to purchase your product every month and will pay the RETAIL price.
4) Remember number one above. READ YOUR POLICY AND PROCEDURES. If it is 20, 30, 40 plus pages there are some legal double talk that can cost you your check once you've built it big. This is an indication of LACK of INTEGRITY from company management who's never been in the field.
5) How many people does it take for you to make $10k in recurring monthly income. This is very important! Some companies you need 4000, 8000,2500, 1000 or even 10,000 distributors. While others may need only 400 or less. This is so important you have no idea.
"Be a Mentor With a Servants Heart"
Mentor Lee
____________________
"Be a Mentor With a Servants Heart"
Mentor Lee
http://julian337.bigmlmlies.com/?mad=8440
|
jeffneil
Member
| Joined: | Wed Sep 28th, 2005 |
| Location: | |
| Posts: | 56 |
| Mana: | |
|
Posted: Wed Jan 17th, 2007 12:04 am |
|
Here are some things to think about when choosing an opportunity that most people do not consider. I didn't, until I learned this from Joe Schroeder. This is stuff people are looking for , usually at a subconcious level, by instinct.
1. Where did you come from?
2. Who's in charge? Why?
3. Where is your community? Is it safe?
4. What are the rules of the community?
5. What do you stand for. What is your cause?
6. Why should I believe you?
7. How long have you been doing this?
8. What makes you different?
9. Got any samples?
Basically, is there a story there that moves people. Is there leadership, and not just one person preaching. Does it have a community feeling where there is something to stand for besides just making money.
This is what makes opportunities and sales organizations withstand the test of time. And also explains why so many opportunties die so quickly.
____________________
Jeff Neil.com
Give Away Free MLM Training Reports
New MLM Articles Directory
|
geofftrader
Member
|
Posted: Wed Jan 17th, 2007 08:48 pm |
|
I have been in a number of network marketing projects, and all my family got heartily sick of supporing my 'latest' crazes.
In my opinion, you need a product that is
in great demand
it is well-proven (and of course legal)
everybody NEEDS it
it doesn't have to be 'SOLD'
everybody GAINS from it
and there is a simple - duplicatable - system to drive it.
Oh - and don't forget to ask your sponsor- did he do it that way, and how soon was he successful ( or she)
____________________
**ONLY LOSERS PAY FOR LEADS** Discover how average
people with no marketing backgrounds are getting prospects to
pay them....NEVER PAY FOR TRAFFIC AGAIN!!!
http://www.payitforward4profits.com/geofftrader
|
odidis
Member
| Joined: | Mon Jul 10th, 2006 |
| Location: | |
| Posts: | 1 |
| Mana: | |
|
Posted: Thu Jan 18th, 2007 05:56 pm |
|
Everyday need products and honest representation of an mlm is what makes the business good. Expensive products and deceptive proposistioning will get some down lines who will soon become disillusioned.
MLM or network marketing is about pulling together for common good. I enjoyed Tony's and all the contribitions. Rouge mlm-ers are bad for business.
____________________
<a href="http://multi-level-network-marketing.fateback.
com/mlm-articles-directory.html">MLM Articles Directory</a> for your mlm knowledge and success.
|
Susan
Member
|
Posted: Sat Jan 20th, 2007 05:40 pm |
|
Hello Tony,
I enjoyed your post.
What about products that give instant gradification? We live in such a "hurry up world" some products are great but if your customer has to use them for 60-90 days before seeing results, will they be that patient?
Susan
____________________
Take a Sniff Test
http://www.5zones.com
|
namia
Member
|
Posted: Sun Jan 21st, 2007 07:47 pm |
|
Thanks for that great post Tony,
Great place to start and then move on to investigating the company execs and so on.
If you don't make it past those first 3 points, why join. I hate the proliferation of programs that are obviously just money schemes and their websites hardly even mention the overpriced product.
Jack
____________________
Investing in a better world
http://www.NamiaCorporation.com
|
TonyRush3
Member
| Joined: | Fri Sep 23rd, 2005 |
| Location: | Alabama USA |
| Posts: | 289 |
| Mana: | |
|
Posted: Tue Jan 23rd, 2007 12:03 am |
|
Susan, I don't think that a commitment to one's business should necessarily be tied to "how long it takes for someone to see results with the product".
Some products like weight loss, skin care, cosmetics, etc. offer instant gratification. Other products like nutritionals, curriculums, etc. will deliver their value over time. But I don't think any of that has any bearing on how long you should commit to getting results on the business side of the equation.
Does that make sense?
Tony Rush
____________________
Tony Rush has been fulltime in network marketing since 1996. He currently serves in the Executive Marketing Council for a large direct sales company and is the co-author of "It's Time...For Network Marketing".
http://www.tonyrush.com
|
streamliner
Member
| Joined: | Tue Jan 16th, 2007 |
| Location: | New York USA |
| Posts: | 58 |
| Mana: | |
|
Posted: Tue Jan 23rd, 2007 03:10 am |
|
Great Post Tony,
I would love to hear more peoples take on this subject.
There are no absolutes in MLM or in any business for that matter. Usually when explaining a particular opportunity, a distributor, representative, associate or whatever the company refers to them as...will point out the reasons why they feel that their company is a good opportunity for the new person to pursue. This is a good thing and needs to be done.
You've done this effectively for your opportunity and many others on this forum have done so also.
I've found that if you not only mentioned some of the ways that you investigate MLM opportunities but, also emphasize the mechanics of MLM as a whole...it brings a lot more credibility to the industry and, believe it or not, to your particular opportunity. If we all hold a higher degree of responsibility to the industry itself, more will be able to build true residual income in the long run.
Kudos to you for starting a topic which could bring out thousands of responses.
HC
____________________
"DECIDE" to be successful!
|
jeffneil
Member
| Joined: | Wed Sep 28th, 2005 |
| Location: | |
| Posts: | 56 |
| Mana: | |
|
Posted: Tue Jan 23rd, 2007 03:29 am |
|
streamliner wrote:
I've found that if you not only mentioned some of the ways that you investigate MLM opportunities but, also emphasize the mechanics of MLM as a whole...it brings a lot more credibility to the industry and, believe it or not, to your particular opportunity. If we all hold a higher degree of responsibility to the industry itself, more will be able to build true residual income in the long run.
HC
Very well said HC. I don't want to get off topic here from this thread, but I agree that each and everyone of us should accept the responsiblilty to make this industry more credible. The more credible we as a group can become, the easier it would be for us all.
Jeff Neil
____________________
Jeff Neil.com
Give Away Free MLM Training Reports
New MLM Articles Directory
|
Current time is 08:25 pm | Page: 1 2 3   |
|
