How To Choose The Right Opportunity

Did you pick the RIGHT one?

So you’ve bought into the idea of network marketing or MLM. The light bulb goes on. You get it. Just like I did. But the mistake I made was jumping in with both feet and both eyes closed. I was seeing nothing but circles and dollar signs. Finally, my big break in life!

Earth to Steve…. Earth to Steve… Wake up, dammit!

Well, there are a number of things I should have looked at before devoting the next 18 months to a company that I would ultimately quit because of various personal differences.

Over the next couple of years, I got involved with two other companies. After investing considerable time and money, both eventually went out of business.

By now I’m thinking maybe this isn’t such a great idea, but an associate of mine calls and introduces me to a new company. Now, with a little experience under my belt and some battle scars, I decided to do some homework. Yes, I looked into this company, but I also looked into many others.

I researched the MLM industry as a whole and the different types of comp plans. I looked at economic trends. I learned about factors that impacted a company’s ultimate success, like leadership, ingenuity, infrastructure, financial strength and track record. I decided if I was going to be serious about building a long-term residual income, I would only succeed with a company that I could believe in, had a great product or service and was going to be around for a long, long time.

With all that in mind, I found the right company for me. And, for the last few years I’ve enjoyed the kind of success only a small percentage of network marketers ever do. Doing my homework paid off and it can for you too.

So here’s how to choose the RIGHT network marketing company. There are 5 key components you want to look at:

1. Product or service driving the opportunity
2. Company
3. Compensation plan
4. Training and support
5. Marketing system

Let’s talk about each briefly, so you know what to look for.

The Product

First, the product or service has to match your particular taste. It has to be something you want use or consume yourself and something that you feel good about. It shouldn’t be something you just tolerate. More importantly, it must be a product or service that is matching current market trends.

What does that mean?

Well, whatever trends that are going on out in the market place right now, for example, baby boomers are 80 million strong and are aging. They’re approaching retirement. So, products and services that cater to their needs are going to be in high demand.

Baby boomers don’t like the idea of aging so they are particularly interested in health and wellness. So a nutritional supplement of some kind would be one product that is matching current market trends.

The Company

When it comes to evaluating the company, you want to look at several things. Number one, who runs it? Who is the CEO and what is his experience? What is his vision for the company? What is his mission? Google his name and see what you find. Is he or she a good person? Do they have any business running that company?

Second, what is the company’s track record? Are they a start up or have they been around for a while? Never invest your time and energy in a start up. 99% of them fail. Do they have the financial backing for expansion? What kind of infrastructure do they have in place? Are there many people currently making good incomes with them? These are all valid questions with regards to considering a company.

The Compensation Plan

How about the compensation plan? There are a number of different types of compensation plans out there, I’m going to discuss three of the most common: Unilevel, Matrix and Binary.

The Unilevel plan is very simple. With this plan, you will build an organization with everyone you personally sponsor being on your first level (front line). Everyone they sponsor would be on your second level and then everyone they sponsor would be on your third level, and so on. There is no limit to the number of people you can sponsor on your front line.

You will earn a commission on each person’s sales volume from each of your levels down to a certain level, usually 6 levels. In most cases, you will have to qualify with personal sales volume to earn commissions and then with team sales volume to get paid on levels 4, 5 and 6.

The Matrix is a set grid that gets filled in. The most common is a 3 x 5 matrix (although there are many others). Here you have 3 fixed positions on the top level, 9 on the second, 27 on the third, 81 on the fourth and 243 on the 5 and final level. Each position has it’s own matrix.

Since there is only 3 positions available on the top level, the fourth person you sponsor would automatically fall into the second level under someone who your previously sponsored. This is called “spillover” and the people who receive spillover are usually ecstatic about it. Unfortunately, since you can get paid based on spillover alone, many people just sit and wait for it and never build their business.

In both plans above, you are limited by levels. For example, if someone in your downline who happens to be on your bottom level sponsors a superstar, you’re out of luck. You can’t capture any commissions based on his and/or his team’s production. Those plans don’t pay past a specific level.

The Binary plan is based on two lines. Each person has two top positions he or she can sponsor people into, one on the left and one on the right. Each of those two positions also has two positions, and so on. After your two top positions are filled, the next person you sponsor would go to the bottom of either side.

Each position effectively has two organizations (left and right) and is paid commissions based on combined sales of both. The Binary plan is by far the most powerful of the three. In a Binary, you are paid on sales volume not levels. There is no limit to the number of levels you can have. Therefore if someone on your 45th level, for example, sponsors a superstar, his and/or his entire team’s sales volume count toward your commissions. Your income is unlimited in a Binary system.

Top-Tier Direct Sales is in a whole other league. Although it is part of the network marketing industry, it isn't MLM. Here's how it works....

A direct sales company usually offers a few different high-ticket products, for example, their entry-level product may retail for $1,500 and their high-end product might be $15,000. Consultants earn large up-front commissions plus residual commissions from sales made by people they've personally sponsored.

A good direct sales compensation structure will have NO pass-up sales constrictions. Many do, so be careful. What that means is, your commissions on your first and second sales are passed up to your sponsor—even though you made the sales. (What's wrong with that picture?)

A major problem contributing to the failure rate of network marketers is solved with a good Top-Tier Direct Sales company and the large up-front commissions. They really help you sustain your marketing efforts while you're just starting out. With a good marketing system in place, it's not uncommon for people to earn over 5 figures per month by their 3rd or 4th month in their business.

Training and Support

After the comp plan, the next thing you want to look at when evaluating an network marketing company is the training and support available. Can you do this? Do they offer regular training calls? Do the have an archive of recorded calls on a variety of topics? Will you have a mentor? Is someone on your immediate team successful? Do they have a training system or workbook? Is there a member support line you can depend on? Or, will you be left to fend for yourself? These are important questions you don’t want to leave unanswered as your ability to succeed depends on the right training and support.

Marketing System

Lastly, you’ll want to make sure the company or your team has a kick-butt marketing system—one that enables you to attract quality people to your business. If your company’s or team’s only idea of a marketing system is for you to make a list of everyone you know, then it's going to be a tough grind.

You want a marketing system that does a few things for you. First, it should create targeted leads for you. Second, it should create a secondary income for you that helps cover your marketing expenses. And third, it should position you as an expert in your field and help you build a relationship with your leads. Lastly, everyone should be able to plug into it, even if they're new to the Internet and marketing. So unless you feel very good about making a list and approaching your friends and family, look for a company or team who has type of marketing system in place. If they don't, your chances of success are severely diminished.

When you consider the above 5 components when looking into a network marketing company, you will find the RIGHT company for you, and increase your odds of success 100 fold.

If only I knew then what I know now...

It CAN be done!